US LNG feedgas demand hits new record as exports surge

US LNG feedgas demand hovered around record highs Feb. 24, as high prices in end-user markets continued to encourage robust exports and two new facilities along the US Gulf Coast continued to ramp up production.

Total feedgas deliveries were scheduled to reach over 16.5 Bcf/d, registering just below levels from the day prior, which was an all-time record high of nearly 16.8 Bcf/d, S&P Global Commodity Insights data showed.

The deliveries, based on nominations that could later be revised, would mark the eighth consecutive day that US LNG feedgas demand has topped 16 Bcf/d, about 600 MMcf/d higher than the previous eight-day period and an average 16% of US dry natural gas production. Compared to the same period of 2024, total US feedgas demand is about 20% higher.

The surging US output comes amid significant price volatility in the LNG market and could offer some relief to global LNG spot prices that remain high compared to historical norms, despite declining over the past two weeks.

Platts, part of Commodity Insights, assessed the Gulf Coast Marker for US FOB cargoes loading 30-60 days forward at $13.44/MMBtu Feb. 24, up 14 cents on the day.

In Europe, the primary destination for US cargoes, prices have come under recent pressure as US-Russia talks to end the war in Ukraine and a potential relaxation of the EU's storage requirements weighed on the market.

But market participants remain bullish that the continent will lean heavily on LNG imports in 2025 to refill dwindling storage inventories. EU gas storage inventories were about 41% full as of Feb. 22, down from about 65% at the same period of 2024, according to data from Gas Infrastructure Europe.

The Platts DES Northwest Europe Marker for April was assessed at $13.830/MMBtu Feb. 24, up nearly 21 cents/MMBtu on the day.

The top US LNG exporter, Cheniere, believes a resolution to the Russia-Ukraine war would likely result the restoration of incremental Russian gas flows to Europe over time, executives said during a Feb. 20 earnings call.

"We believe this would aid a rebalancing in the gas market and help support a more affordable and stable pricing environment conducive to long-term natural gas and LNG demand growth," Cheniere's Chief Commercial Officer Anatol Feygin said.

Cheniere still sees Europe's call on US LNG cargoes continuing this year, citing an estimate from Norway's Equinor earlier in the month that Europe could need to attract as many as 350 more LNG cargoes this year because of depleting inventories.

Cheniere's midscale expansion of its Corpus Christi terminal is one of two liquefaction projects ramping up production along the US Gulf Coast. The other is Venture Global's Plaquemines LNG terminal in Louisiana.

Production at the facilities is expected to continue increasing in 2025 and 2026.

Output from the Plaquemines facility has increased rapidly since the terminal began producing and exporting LNG in December.

The plant was scheduled to receive about 1.6 Bcf/d on Feb. 24, Commodity Insights data showed. Venture Global has authorization from US energy regulators to flow feedgas to two-thirds of the first phase of the facility, which will have a nameplate capacity of about 13.3 million mt/year. At full construction, the two-phase project will have a total nameplate capacity of about 20 million mt/year.

Observable deliveries to Corpus Christi, where three large-scale trains are already in operation, were about 2.4 Bcf/d Feb. 22. Cheniere produced the first full LNG cargo from the nameplate 10 million mt/year expansion last week, executives said Feb. 20.

The exporter expects to complete the first of the project's seven midscale units by the end of the first quarter, followed by two additional trains in 2025, while the remaining facilities are expected to come online in 2026.