Calcasieu Pass ramps up feedgas deliveries as it prepares to begin LNG production

Feedgas deliveries to Venture Global LNG's Calcasieu Pass reached the highest level to date Jan. 24 – more than double the amount from a week earlier -- as the Louisiana liquefaction facility prepared to begin production, S&P Global Platts Analytics data showed.

Once online and fully ramped up, the seventh major US LNG export facility will have a capacity of 10 million mt/year.

In the weeks ahead, Calcasieu Pass will be starting up at a time of significant volatility in supply, demand and prices in the global LNG market. US terminals continue to operate at or near full capacity, amid strong netbacks to end-user markets. No cancellations at Gulf Coast facilities have been reported in recent months.

"Impossible," an Atlantic-based trader said of the potential for any cancellations in the near-term. "LNG is so much in the money."

Platts assessed the Gulf Coast Marker at $26.250/MMBtu on Jan. 24, up $3.750/MMBtu on the day, as US FOB cargo values tracked European prices and low shipping rates.

Based on nominations for the morning cycle, gas deliveries observed to be flowing to Calcasieu Pass totaled 77.36 MMcf/d on Jan. 24, up from 47.56 MMcf/d the previous day and 34.71 MMcf/d a week earlier, Platts Analytics data showed.

According to Venture Global, all 18 liquefaction modules have been received at the Louisiana terminal from Italy and set on foundations. Earlier in January, the operator received US regulatory approval to begin commissioning the first two-train block with feedgas.

Company officials have not addressed whether a cargo will be imported to the terminal for the purposes of cooling down the storage tanks, before the first export from the facility. Cheniere Energy brought in a cool-down cargo before its Sabine Pass terminal, the biggest US liquefaction facility, began exports in 2016.

Last spring, the Venture Global had suggested the first export could occur by the end of 2021, a year ahead of its original schedule.

Total US LNG feedgas demand stood at 13.28 Bcf/d on Jan. 24, up from 11.43 Bcf/d the previous day and 12.96 Bcf/d a week earlier.

At Freeport LNG, utilization recovered Jan. 24 following an unplanned outage on Jan. 23.

According to an air emissions notice to Texas regulators, the loss of electric power to Freeport LNG's upstream pretreatment facility resulted in a trip of Freeport LNG's liquefaction trains 1, 2 and 3.

"Because of the trip, the boil-off gas compressors also tripped due to an increase in pressure in the BOG recovery system," the notice said.

The three LNG trains appeared to be operating on Jan. 24, a person familiar with the outage said.