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Market Chatter: US LNG Feedgas Flows Hit 16-Week Low on Spring Maintenance

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US liquefied natural gas feedgas demand fell to its lowest level since late January, driven by scheduled spring maintenance at major Gulf Coast export terminals, including Sabine Pass and Freeport LNG, Reuters reported on Tuesday, citing LSEG.

The nine major LNG export plants in the Lower 48 were set to receive about 16 billion cubic feet per day on May 19, down about 1.6 Bcf/d from the previous day and the lowest since Jan. 27, based on nominations for the morning cycle, the report said. Figures may be revised.

Scheduled flows at Freeport LNG in Texas fell about 500 million cubic feet per day, or 35%, to about 900 MMcf/d, indicating two of three liquefaction trains were offline. The company had previously confirmed that one train was taken out of service for planned maintenance expected to last several weeks.

Flows at Cheniere Energy's (LNG) Sabine Pass facility in Louisiana were set to drop by about 1.1 Bcf/d, or 24%, amid maintenance work linked to a short outage on the Creole Trail pipeline supplying the terminal.

Cheniere did not respond immediately to' requests for comment.

Broader maintenance across US LNG infrastructure, including ongoing work at Cameron LNG and startup-related outages at Golden Pass LNG, has further reduced utilization in recent weeks. Spring maintenance is typically concentrated in May and June.

The lower feedgas demand comes as LNG shipping constraints linked to Middle East tensions continue to support strong demand for US cargoes, with transits through the Strait of Hormuz remaining restricted.

Price benchmarks tracked by S&P Global Commodity Insights showed gains. The Gulf Coast Marker for cargoes loading 30 to 60 days forward rose about 4% to $16.13/MMBtu on May 19, while Asia's JKM benchmark and Europe's TTF-linked DES Northwest Europe marker also held near multi-month highs.

Weaker utilization has also eased pressure on LNG shipping markets, the report said. Atlantic two-stroke freight rates were assessed at $93,500 per day, while Pacific rates were steady at $65,500 per day, both well below peaks seen during the height of recent Middle East-related disruption.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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