Cameron LNG maintenance highlights fragility in spring gas demand

Cameron LNG’s Train 1 went offline for maintenance on 1 May, leading to a significant drop in feedgas flows to the terminal, now below 1.2 Bcfd compared to the year-to-date average of 2.2 Bcfd. This event coincides with scheduled maintenance on the Cameron Interstate Pipeline, which is expected to limit flows to about 270,000 MMBtu from 5 to 8 May.  

Historically, maintenance on Train 1 has lasted between three to four weeks, and if that pattern holds, the market could see cumulative demand losses of 15–20 Bcf. This comes at a time when LNG feedgas demand is already beginning to decline seasonally, driven by rising temperatures. 

LNG maintenance outlook and demand dynamics 

An unexpected outage at Freeport and decreases at Corpus Christi LNG have also weighed on LNG feedgas demand this week. Additional, expected maintenance at Sabine Pass and Corpus Christi could further pressure feedgas demand over the summer season. While new terminals like Plaquemines LNG are beginning to contribute volumes, growth will be tempered by lower seasonal utilisation at existing sites.  

Despite the recent softening, LNG remains a bright spot for U.S. gas demand. Although slipping below 15 Bcfd in recent days, the seven-day average for feedgas demand measured 15.5 Bcfd at the end of last week, more than 25% higher year-on-year. However, with weather-driven demand still lagging and triple-digit storage injections already underway, these maintenance events will contribute to loose market balances in the near term.  

Fill in the form above to receive more insights like this in your inbox.