LNG

U.S. LNG feedgas demand is weakening with Freeport LNG pulling nominations down to about 1 bcf/d as major maintenance began on July 10, while Golden Pass has also been showing erratic feedgas behaviour during ramp-up.

Golden Pass LNG, the QatarEnergy and ExxonMobil joint venture, has received U.S. regulatory approval to begin preliminary commissioning activities on Train 2 – just two days after the company filed its request.

Golden Pass LNG Train 1 is still finding its feet, having exported only two cargoes to date – one to Belgium and one to Taiwan – with roughly 0.14 mpta combined, according to LNG Journal calculations. Unplanned maintenance is understood to hamper Golden Pass LNG’s ramp-up nearly two months after its inaugural cargo.

Volumes of natural gas feeding the nine major US LNG export terminals are sliding towards a 16-week low, even as ExxonMobil/QatarEnergies’ Golden Pass terminal returns from maintenance, according to LSEG data.

The first LNG cargo from Golden Pass, Texas, is on route to Belgium’s Zeebrugge terminal which the carrier Al Qa’aiyyah is signalling as its destination. Loaded by QatarEnergy, as part of its Golden Pass equity quota, the cargo has likely been purchased by Eni.

Start-up delays appear to have prompted ExxonMobil to withdraw an offer to sell two initial LNG cargoes from Golden Pass on the spot market. The terminal has reached only about one-third of its liquefaction capacity since production began in late March, according to LSEG data.

Five US LNG projects are set to start operations and ramp up productions by the end of 2027, adding nearly 30% to the country’s current peak export capacity of 18.3 bcf/d and helping offset 10 Bcf/d of damaged Qatari export capacity, according to US government analysts.

Elevated US gas production is offsetting the bullish price impact of unseasonably cold weather through early March, while the ramp-up of Golden Pass LNG lifted feedgas intake to about 0.25 billion cubic feet per day (bcf/d).

Feedgas intake at Golden Pass LNG, developed by ExxonMobil and QatarEnergy, has been increased as the Texan mega-project is getting closer to producing its first cargo. Feedgas intake has been increased to 300 million cubic feet (mcf) since early Thursday, up from 200 mcf, LSEG data shows.

Exxon Mobil CEO Darren Woods anticipates first LNG at Golden Pass LNG terminal will be “produced in very early March.” The $10 billion liquefaction terminal near Sabine Pass, jointly owned by Exxon Mobil and QatarEnergy, will become one of the newest US LNG export plants as it advances through commissioning.