U.S. Natural Gas Prices Surge On record Export Flows

U.S. natural gas futures jumped in Monday’s early trading session, rebounding from recent lows driven by robust export flows and strong demand forecasts. Henry hub gas was trading at $3.98 per MMBtu at 11.25 am ET, up from a two-week low of $3.74 per MMBtu a week ago. U.S. LNG exports hit a fresh record 15.6 bcfd in February, boosted by new units at Venture Global’s (NYSE:VG) Plaquemines plant. The Arlington, Virginia-based LNG exporter commenced LNG production at its Plaquemines LNG plant 30 months after the final investment decision (FID) was made, making the plant with a 20 mtpa nameplate capacity one of the two fastest greenfield projects to reach first production. Once fully operational, Plaquemines will be among the largest LNG facilities in the world, featuring 36 electrically-driven 0.626 million tonnes per annum (mtpa) liquefaction trains, configured in eighteen blocks.

“Reaching first LNG at Plaquemines at this pace will enable the United States to remain the top exporter of LNG in the world. Between current and planned facilities, Venture Global is prepared to invest $50 billion in energy projects based in the United States which will create jobs, support local economies, strengthen the balance of trade and unleash much-needed US LNG supply to our allies,” remarked Venture Global CEO and Co-Founder, Mike Sabel.

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The U.S. is rapidly developing LNG plants to meet Europe’s surging demand for the commodity. Two weeks ago, Cheniere Energy, for the first time, started producing liquefied natural gas (LNG) from the first train (Train 1) of its Corpus Christi Stage 3 Liquefaction Project. As of Nov. 30, the overall project completion for the project was close to 76%; however, the company expects substantial completion achieved at the end of the first quarter of 2025. The project consists of seven midscale trains, projected to produce over 10 million tonnes per annum (mtpa) of LNG.

Meanwhile, gas demand in the Lower 48 states is projected to be higher than previously anticipated despite milder weather expected through March 18. Also, stockpiles remain about 12% below the five-year average due to earlier extreme cold. U.S. gas output hit a fresh record of 104.7 bcfd in February.

By Alex Kimani for Oilprice.com

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