US LNG feedgas dips ahead of Hurricane Francine on reductions at Louisiana plants (updated)

Nippon Yusen Kabushiki Kaisha

11/09/2024 14:02

(Adds feedgas flows and background)
       Sept 11 (Reuters) - The amount of natural gas flowing to
U.S. liquefied natural gas (LNG) export plants was on track to
slide to a two-week low on Wednesday as energy firms reduced
feedgas to plants in Louisiana before Hurricane Francine crashes
into the state's coast, according to data from financial firm
LSEG.
        The U.S. National Hurricane Center (NHC) projected
Francine will slam into the Louisiana coast with maximum
sustained winds of around 100 miles per hour (161 kilometers per
hour) later on Wednesday. Louisiana is home to three of the
nation's seven big operating LNG export plants.
  
        Gas flows to the nation's LNG export plants were on
track to decline from 12.8 billion cubic feet per day (bcfd) on
Tuesday to a two-week low of 11.7 bcfd on Wednesday, LSEG data
showed. Total feedgas averaged about 13.4 bcfd over the prior
week.
  
        Most of that reduction was due to a drop in flows to the
2.0-bcfd 
    Cameron LNG
     export plant in Louisiana from 1.9 bcfd on Tuesday to 0.9
bcfd on Wednesday. Feedgas to Cameron averaged 2.1 bcfd over the
prior week.
  
        One billion cubic feet of gas is enough to supply about
five million homes for a day.
  
        Officials at Cameron LNG were not immediately available
for comment on the reason for the reduction. Energy traders
noted Francine was forecast to make landfall near Cameron.
  
        Cameron LNG's partners include units of U.S. energy
company Sempra Energy  SRE.N , Japanese corporate groups Mitsui
& Co  8031.T  and Mitsubishi  8058.T , France's TotalEnergies
 TTEF.PA  and Japanese shipping line Nippon Yusen KK (NYK Line)
 9101.T , according to the Cameron website.
  
        
  
        OTHER LNG PLANTS
  
        The two other big LNG plants operating in Louisiana are
Cheniere Energy's  LNG.N  4.5-bcfd Sabine Pass and Venture
Global LNG's 1.6-bcfd Calcasieu Pass.
  
        Calcasieu was on track to pull in about 1.2 bcfd of
feedgas on Wednesday, down from 1.4 bcfd on Tuesday, while
Sabine was on track to pull in about 4.6 bcfd on Wednesday, up
from 4.5 bcfd on Tuesday, according to LSEG data.
  
        LNG plants pull in more gas than they can turn into LNG
because they use some of that gas to fuel equipment.
  
        Officials at Cheniere and Venture Global were not
immediately available for comment. Earlier in the week, Cheniere
said LNG production remained uninterrupted at Sabine as the
company continued with storm preparation.
  
        In Texas, meanwhile, Freeport LNG's 2.1-bcfd export
plant was on track to pull in about 1.9 bcfd of gas on
Wednesday, up from 1.8 bcfd on Tuesday. Feedgas to Freeport
averaged 2.0 bcfd over the past week.
  
        Freeport has shut during storms in the past due to power
outages or other storm-related damage. Francine, however, was
still too far from land to cause power outages or other damage.
  
        Freeport is more sensitive to power outages than other
U.S. LNG plants because it uses electric motors instead of gas
turbines to drive liquefaction compressors.
  

 (Reporting by Scott DiSavino; Editing by Andrew Heavens and
Nick Zieminski)
 ((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters
Messaging: scott.disavino.thomsonreuters.com@reuters.net))