LNG feedgas flows recover

Texas is bouncing back: gas production and LNG feedgas flows are swiftly recovering after last week’s big freeze.

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In term of production, the Permian is leading the way, with most recent estimates indicating that gas output increased by over 5 bcf/d from its lows of last week when Permian deliveries fell close to ô 2 bcf/d. In total, the US recovered almost half of the production capacity lost through the big freeze of last week, when output fell by well over 15%.

And LNG feedgas flows are ramping back as well: following a steep drop to 2.1 bcf last week Tuesday, flows to the Texan terminals now recovered to ~7 bcf, still about 30% below their pre-freeze levels. Sabine Pass, Corpus Christi and Cameron are leading the way, whilst Freeport LNG seems to taking more time -they reportedly had to shut some of the trains.

Considering that the full recovery would take still couple of days, it could be estimated that 15-20 LNG cargoes have been lost due to the big freeze.

What is your view? By when we will see full recovery in US gas production? What will be the price impact through the year as storage is now below last year’s levels? And what can be done to improve the resilience of the Texan gas system?

Source: Greg Molnar

See original post by Greg at LinkedIn.