Train 4

Cheniere Energy’s Sabine Pass LNG liquefaction and export facility in Louisiana last week received federal approval to begin operating its fourth 650-MMcf/d liquefaction train, bringing the total export capacity at the terminal to 2.6 Bcf/d. Natural gas supply delivered to the terminal for export has averaged 2.0 Bcf/d in recent months, with flows jumping as high as 2.9 Bcf/d on some days last month as the operator readied Train 4 for operations. There are several supply regions targeting this new demand, including the fastest growing producing region, the Marcellus/Utica Shale in the U.S. Northeast. While there isn’t yet a direct beeline from the Marcellus/Utica to Sabine Pass, there are early indications that recent pipeline takeaway and reversal projects from the producing region and the resulting connectivity are indirectly bridging the divide. In today’s blog, we examine pipeline flow data to understand recent changes in flows and what they can tell us about future flow patterns as export demand continues to grow.