Key insights
- US natural gas flows to LNG export plants are expected to hit a 16-week low due to spring maintenance at facilities like Golden Pass and Freeport LNG. While the US is the largest LNG exporter, this temporary reduction could slightly impact global supply and potentially put upward pressure on international gas prices, indirectly affecting energy costs for US consumers and businesses.
Investing.com - Natural gas flows to nine major U.S. liquefied natural gas export facilities are expected to reach a 16-week low on Tuesday, according to data from LSEG.
Daily LNG feedgas volumes were projected to decline to 15.1 billion cubic feet per day on Tuesday from 16.3 bcfd on Monday, marking the lowest level since January 27. One billion cubic feet of gas can supply approximately five million U.S. homes for a day.
Average gas flows to U.S. LNG export plants have decreased to 16.9 bcfd in May from a monthly record of 18.8 bcfd in April, LSEG data showed. The reduction stems from spring maintenance activities at several facilities, including QatarEnergy and Exxon Mobil’s (NYSE:XOM) Golden Pass plant and Freeport LNG’s export plant in Texas.
The decline occurred as Golden Pass was expected to resume operations with flows of around 0.3 bcfd on Tuesday, after receiving almost no gas for six consecutive days. The facility shipped its first LNG cargo in late April.
The U.S. became the world’s largest LNG exporter in 2023, overtaking Australia and Qatar. American gas has played a growing role in meeting global energy demand following supply disruptions caused by Russia’s 2022 invasion of Ukraine and the U.S.-Israeli conflict with Iran, which drove international gas prices higher.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.