LNG Exports Curbed by Pipeline Maintenance

U.S. liquefied natural gas (LNG) exports are facing a bottleneck due to pipeline maintenance, which is curbing feedstock levels at U.S. terminals.

Data from Industrial Info Resources shows that dry natural gas production is down about 0.42 billion cubic feet from Wednesday's levels, with the majority of declines coming from Texas.

Maria Sanchez, a senior natural gas analyst at Industrial Info's energy division, attributes this decline to problems at compressor stations in Pennsylvania and maintenance on regional networks limiting flows.

The Permian Basin is the second-largest natural gas producer by volume, after the Appalachia reservoir spread out over West Virginia, Ohio, and Pennsylvania. Federal data show that Permian production is expected to expand marginally next year to average 31.9 billion cubic feet per day (Bcf/d).

Kinder Morgan reported in its quarterly report from July that demand for gas infrastructure was on the rise due to tight supplies driven by the war in the Middle East.