U.S. LNG feedgas demand rose last week after Cove Point returned to full capacity, and the commissioning Plaquemines terminal continued to gain momentum.
Feedgas demand was about 15.9 Bcf/d last week (see dotted blue line in chart below) up 0.2 Bcf/d week on week. Cove Point restarted on October 12 after being offline for 22 days for annual maintenance and is already operating at full capacity.
Plaquemines has averaged 3.5 Bcf/d so far in October and the new terminal continues to receive FERC authorizations for additional equipment. Blocks 1-16 and 18 are now approved to take feedgas and produce LNG, while Block 17, the final block not yet taking feedgas, was approved to take nitrogen gas at the end of September.
It remains unclear what Plaquemines’ typical long-term feedgas intake will look like, largely because of the capacity upsize FERC approved during commissioning. The liquefaction equipment has been consistently performing above its original design, and Venture Global requested an increase in its export capacity to 28 MMtpa, which would require roughly 4.1 Bcf/d of feedgas at peak output.
The U.S. is likely headed for record feedgas demand this winter as new capacity ramps up and existing terminals reach peak seasonal production. For more insights on the U.S. LNG industry, check out the LNG Voyager Weekly Report.
Comments
Any views on state of ADCC flows into CC3? could suggest we are already at record feedgas levels
Great question. Right now, intake at Stage III is likely still somewhere between 0.2-0.5 Bcf/d based on the terminal’s output and their published commissioning progress. So, with Cove Point back online, we are just starting to flirt with those highs from April, but once the winter production picks up at the existing terminals, we will really see some record-setting levels even if nothing changes with the commissioning terminals. When you add on to that the increase from the commissioning, the last of Plaquemines, more at Stage III (ADCC) and Golden Pass starting we will likely shatter the records from last winter/April.