U.S. liquefied natural gas (LNG) exports are experiencing a temporary reduction in May due to scheduled maintenance at several Gulf Coast terminals, including Golden Pass, Freeport, and Cameron LNG.
The decrease in feed gas flows occurs amid strong international demand driven by geopolitical tensions and restrictions on strategic LNG supply routes.
These tasks are temporarily reducing the available supply in the global spot market, contributing to the strengthening of international LNG prices.
Golden Pass Maintains Scheduled Outage in Texas
On May 18, feed gas supplies to the Golden Pass LNG export terminal remained virtually zero for the sixth consecutive day, according to S&P Global Commodity Insights data.
The company indicated that the interruption corresponds to routine maintenance tasks related to the facility’s commissioning and the progressive capacity ramp-up of Train 1.
“Golden Pass confirms a scheduled outage at our LNG terminal to perform routine maintenance tasks related to commissioning,” a company spokesperson stated.
Prior to the interruption, feed gas flows had exceeded 400 million cubic feet per day, though still below full facility utilization. The terminal exported its second cargo on May 9.
Freeport and Cameron Also Performing Work
The reduction in activity at Golden Pass coincides with seasonal scheduled maintenance at other U.S. LNG facilities.
Freeport LNG confirmed on May 13 that one of its three liquefaction trains would be taken offline for several weeks for maintenance.
Meanwhile, Cameron LNG, in Louisiana, began activities on May 1. In previous years, similar operations extended for three to four weeks.
Cheniere also recently reported the completion of scheduled maintenance at its Corpus Christi terminal in Texas.
Lower U.S. Supply Sustains Global LNG Prices
According to Platts, the FOB Gulf Coast Marker for 30-60 day delivery cargoes reached $15.50/MMBtu on May 18, approximately 68% above pre-Middle East conflict levels.
In Asia, the JKM index for July rose to $19.689/MMBtu, while the DES Northwest Europe marker stood at $16.83/MMBtu.
The market continues to be influenced by tensions in the Middle East, which keep approximately 20% of global LNG supply that normally transits through the Strait of Hormuz restricted.
This Work Reduces Pressure on Shipping Rates
Although the work reduces exports, market operators noted that maintenance is helping to alleviate pressure on shipping rates by temporarily increasing the availability of LNG carriers.
Rates for two-stroke LNG vessels in the Atlantic were $94,000 per day on May 18, well below the highs of over $300,000 per day recorded during the peak of the conflict in March.
In the Pacific, rates stood at $65,500 per day, also lower than the peak levels observed in early March.
Source: https://www.spglobal.com/
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