U.S. LNG feedgas plummeted over the weekend as Winter Storm Fern hit parts of the country. The storm caused massive production freeze-offs, high domestic demand, and spiking U.S. prices, which in turn disrupted LNG feedgas demand.
Feedgas demand averaged 17.2 Bcf/d last week (blue-dotted line in chart below), down about 1.2 Bcf/d from the previous week. Feedgas demand averaged 18.9 Bcf/d from Monday to Friday last week, then dropped to around 14.4 Bcf/d on Saturday and 11.5 Bcf/d on Sunday. Inflows were reduced at every terminal. Elba Island shut in completely over the weekend, while inflows at Cove Point were below 0.2 Bcf/d.
The impact was more mixed for the terminals on the Gulf Coast, with intake at most terminals dropping by 20-30% at the peak of the storm, but Freeport and Sabine Pass saw larger disruptions. Sabine Pass was operating at 50% capacity on Sunday, while Freeport intake dropped to 30% of its typical utilization.
LNG feedgas demand is already rebounding as the country begins to thaw out from the storm. Feedgas demand on Monday was down slightly from Sunday, but is up by 2 Bcf/d today (January 27). Temperatures will likely continue to warm up this week and LNG feedgas intake should normalize. Stay tuned to the LNG Voyager Weekly Report for more updates on the U.S. LNG market.
