US LNG Capacity Strained Amid Qatar Supply Halt
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: seekingalpha
- Capacity Constraints: Despite being the world's largest LNG producer, the U.S. has little spare capacity to quickly ramp up LNG output following Qatar's supply halt, resulting in tight market conditions.
- Export Status: The U.S. exports nearly 19 billion cubic feet of natural gas daily, nearly double the 10 billion cubic feet per day removed by Qatar due to the Iran attacks, yet domestic export plants are operating at near full capacity with most cargoes locked into long-term contracts.
- Cheniere Energy Update: Top U.S. exporter Cheniere Energy sold 46 million metric tons of LNG last year and is currently drawing over 7 billion cubic feet per day of feed gas for its Gulf Coast terminals, although its newly expanded Train 5 is expected to take about a month to reach full output.
- Venture Global Flexibility: Second-ranked producer Venture Global has more flexibility in the short term, as it is selling up to 4 billion cubic feet per day of commissioning volumes from its Plaquemines plant on the spot market, which will be capable of producing 35 million tons per year when fully operational.
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Analyst Views on LNG
Wall Street analysts forecast LNG stock price to rise
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 250.800
Low
258.00
Averages
274.09
High
290.00
Current: 250.800
Low
258.00
Averages
274.09
High
290.00
About LNG
Cheniere Energy, Inc. is the producer and exporter of liquefied natural gas (LNG) in the United States. The Company provides clean and secure LNG to integrated energy companies, utilities, and energy trading companies worldwide. It operates two natural gas liquefaction and export facilities at Sabine Pass, Louisiana (Sabine Pass LNG Terminal) and near Corpus Christi, Texas (Corpus Christi LNG Terminal). Sabine Pass LNG Terminal, which has natural gas liquefaction facilities consisting of six operational trains, for a total production capacity of approximately 30 million tons per annum (mtpa) of LNG (the SPL Project). Corpus Christi LNG Terminal near Corpus Christi, Texas, consists of three trains for a total production capacity of approximately 15 mtpa of LNG, three LNG storage tanks and two marine berths. It also owns and operates a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several large interstate and intrastate pipelines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Escalating Geopolitical Risks: Following Iranian attacks on Qatar's LNG infrastructure, concerns about potential escalation of hostilities have intensified, with Rapidan Energy warning that further conflict could severely damage Qatar's LNG production, destabilizing global markets.
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