HomeNewsCheniere liquified natural gas plant reduces feedgas intake

Cheniere liquified natural gas plant reduces feedgas intake

6/19/2023

(Reuters) - U.S. liquefied natural gas exporter Cheniere Energy Inc has reduced feedgas intake and LNG output at its Louisiana facility during maintenance, according to two people familiar with the matter.

U.S. gas storage has jumped this year in part on weaker demand for LNG feedgas. Last week, total storage rose to 2.634 trillion cubic feet, 32% greater than the five-year average for this time of year.

Gas flows to the seven big U.S. LNG export plants have fallen to an average of 11.6 bcfd so far in June from 13.0 bcfd in May, Refinitiv data showed.

Two of Cheniere's Sabine Pass production units were undergoing routine turnarounds that have reduced the plant's gas draw by about 1.5 billion cubic feet per day (bcfd). The plant has six processing units, called trains, that together can produce up to 30 million tons of LNG per year.

On Friday, the facility was on track to pull in about 2.9 bcfd of gas, according to data provider Refinitiv. While that is the same as the past seven days average, it was down from an average 4.6 bcfd in May.

"Trains 1 and 2 started six years ago and every six years, under its contract with Bechtel and some of providers of its machinery, it has to undergo major maintenance," said Alex Munton, global gas and LNG director at Rapidan Energy Group.

Calcasieu Pass on Friday was on track to pull in about 1.3 bcfd, down from an average of 1.4 bcf/d in May Refinitiv data showed. The plant has required repairs to its heat recovery steam generators, Venture Global LNG has said.

Sempra Energy's Cameron LNG plant, also in Louisiana, was on track to pull in about 1.7 bcfd on Friday, down from an average of 1.9 bcfd over the past seven days. Texas-based Freeport LNG also was expected to draw about 1.9 bcfd on Friday, down from an average of 2.1 bcfd in May, Refinitiv data showed.

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