Market Report Sneak Peak

The biggest change to the Arrow Model assumptions over the past month has been the adjustment to feedgas flows for Plaquemines LNG. Feedgas to that facility, which constitutes all of Arrow AL, has been extremely high for four months, so we have revised our forecast upward from the present through the end of the decade, assuming that high feedgas will be the norm. In 2026 and 2027, the need for more incremental feedgas causes more gas to flow from Northeast LA to South LA on Arrow AH. This in turn causes follow-on effects of increasing flows from Northeast TX to Northwest LA on Arrow R and from Northwest LA to Northeast LA on Arrow AC.

Over the longer term from 2028 onward, incremental feedgas from South LA is met through a reduction of flows on Arrow AI from South LA to Sabine River LA. This is accomplished because Sabine River LA receives more gas from the west, flowing from Gulf Coast TX to Sabine River TX on Arrow V and then on to Sabine River LA on Arrow W. The adjustment to the timing of Corpus Christi Midscale Trains 8-9 leads to more feedgas from Corpus TX on Arrow J in 2028. This is met by larger flows from West TX to Corpus TX on Arrow E and smaller flows from Corpus TX to Gulf Coast TX on Arrow I.