The amount of natural gas flowing to U.S. LNG export plants was on track to drop to a six-week low on April 8 due to planned work at Cheniere Energy Inc.’s Corpus Christi in Texas, according to analysts and Refinitiv.
LNG feedgas was on track to fall to 9.1 billion cubic feet per day (Bcf/d) on April 8, according to Refinitiv data, its lowest since Feb. 26 when U.S. exports were recovering after several Gulf Coast LNG plants shut due to a shortage of gas and power during the Texas freeze in mid February.
Analysts said it was normal for LNG plants and gas pipelines supplying them to shut for maintenance in the spring when demand is low.
Cheniere, which does not comment on operations, said in a posting on its website there was pipeline maintenance at the Sinton compressor in Texas on April 8.
So far this month, the amount of gas flowing to U.S. LNG plants averaged 11.1 Bcf/d, which would top March's monthly record of 10.8 Bcf/d.
Buyers around the world continue to purchase record amounts of U.S. gas because prices in Europe and Asia remain high enough to cover the cost of buying and transporting the fuel across the ocean.
Traders, however, noted U.S. LNG exports cannot rise much more until new units enter service in 2022, since the United States only has capacity to export about 10.5 Bcf/d of gas as LNG. LNG plants pull in a little more gas than they export since they use some of the fuel to run the facility.
Traders said it was unlikely feedgas in April would top March's record due to the Corpus reduction and other maintenance later this month, including expected work at Cameron LNG in Louisiana.
Officials at Cameron were not immediately available for comment.
Unlike most U.S. producers, Diversified, which this month changed its name from Diversified Gas & Oil, does not drill new wells, but buys mature gas fields and focuses on slowing their decline rates.
The divestiture primarily comprise natural gas-producing properties in the western Delaware Basin of the Permian and also include a small undeveloped acreage position, Callon Petroleum said.
Its latest pilot project includes a deal with electric and gas utility Xcel Energy to buy natural gas for its Colorado customers produced by Crestone Peak Resources and certified as “responsibly sourced” by Project Canary.