US LNG feedgas demand hits highest level since May as Sabine Pass resumes output

Houston — Gas deliveries to US liquefaction facilities surged to the highest level in four months Sept. 9, as Cheniere Energy's Sabine Pass terminal in Cameron Parish, Louisiana, resumed production after recovering from the impact of Hurricane Laura.

Sempra Energy's Cameron LNG, in Hackberry south of Lake Charles, remained offline two weeks after the Category 4 storm came ashore on the US Gulf Coast.

Together, the two facilities have the capacity to produce over 40 million mt/year of LNG from eight liquefaction trains.

With Cheniere resuming normal operations at Sabine Pass, according to a statement from the company, feedgas flows to the six major US LNG export terminals totaled approximately 6.7 Bcf/d Sept. 9. That was the highest level since May 11, S&P Global Platts Analytics data showed.

With physical damage appearing not to be substantial at Sabine Pass and Cameron LNG, the biggest difference in the challenges they have faced getting back up and running after the hurricane made landfall Aug. 27 has involved power.

Cameron LNG relies on power purchased from utility Entergy, and widespread outages in the area have continued. Sabine Pass produces its power on-site, helping it get back up and running more quickly.

Sempra has acknowledged that the storm's impact on the surrounding community and the local resources Cameron LNG depends on has been significant. The operator said in a statement Sept. 4 it was working with Entergy and Lake Charles Pilots on restoration timelines and was helping the community as it begins "the long path to recovery."

The operator has not provided an update since then.

Prices in Asian import markets have been trending upward and overall global LNG economics have improved from earlier lows seen when the coronavirus pandemic first took hold on a global scale in March. September cancellations of cargoes scheduled to be loaded in the US were said to be sharply lower than during the height of the summer.