US LNG Exports Hit by Maintenance and Market Issues
The US LNG sector is facing challenges due to market issues and maintenance along the Gulf Coast. The U.S. Energy Information Administration (EIA) reported that demand for feed gas to support exports of liquefied natural gas (LNG) from the US is lower than expected.
The EIA stated that LNG exports are expected to be about 1.1% below its forecast of 16.7 billion cubic feet per day (Bcf/d) of gas in the liquid form for last month. The reduction is attributed to ongoing maintenance at the Freeport LNG facility, which is designed to handle as much as 2.37 Bcf/d.
The Freeport terminal has experienced regular issues since operations began in 2019 and currently operates at only about 50% of its feedstock capacity. However, even with Freeport fully operational, exports would remain limited due to slow growth in additional export capacity.