Natural gas deliveries through pipelines to US LNG export plants, known as LNG feed gas, averaged 12.8 bcfd in first-half 2023, according to data by S&P Global Commodity Insights and the US Energy Information Administration (EIA). This increase was attributed to the Freeport LNG plant returning to service. Over this period, the average LNG feed gas was 8%, or 1 bcfd, more than the 2022 annual average, and 4%, or 0.5 bcfd, more than the same 6-month period in 2022.
April 2023 marked a monthly record for LNG feed gas at 14 bcfd, driven by strong international demand for US LNG exports, particularly in Europe. However, there was a slight decline in May and June, with averages of 13 bcfd and 11.5 bcfd, respectively, mainly due to maintenance work at various US LNG export plants, including Sabine Pass and Cameron.
LNG feed gas levels are typically higher than LNG export levels because some of the feed gas is used by LNG export plants for on-site liquefaction equipment operation. Freeport LNG is unique in the US as it employs electric motors instead of natural gas turbines to drive refrigerant compressors, resulting in most of its feed gas being converted into LNG.
According to EIA’s estimates, about 14% of LNG feed gas is used for liquefaction processes, mostly to operate on-site liquefaction equipment.
EIA forecasts US LNG exports to average 12 bcfd in 2023 and 13.3 bcfd in 2024, as new LNG liquefaction projects, including Golden Pass and Plaquemines, are expected to come online. The global economic conditions and demand for natural gas in Europe and Asia will influence this forecast. Moreover, the replacement of Russia's natural gas exports by pipeline to Europe with LNG is anticipated to support higher US LNG exports. Limited growth in global LNG export capacity in the next 2 years may increase demand for destination-flexible LNG supplies, primarily from the US, according to EIA.
