U.S. LNG feedgas demand rebounded sharply last week as Gulf Coast terminals returned to peak winter operations following Winter Storm Fern.
Feedgas demand was up more than 2 Bcf/d last week to average 18.7 Bcf/d (see blue dotted line in figure below). All the Gulf Coast terminals are back to pre-storm, peak winter levels. Feedgas intake at Sabine Pass is especially strong, mostly above 5 Bcf/d since January 30.
Cove Point and Elba Island, the non-Gulf terminals, are both operating below full capacity. It remains very cold in the Northeast, and prices in the Northeast and Southeast are elevated and well above Henry Hub, incentivizing the sale of feedgas back into the domestic market.
Temperatures are expected to climb in the two-week forecast, which should normalize prices and LNG feedgas intake. For more insights on the U.S. LNG industry, check out our LNG Voyager Weekly Report.
