Extreme weather and fast LNG dominate US natural gas news

Author: Deji Ibuoye, Research Analyst 

In this round-up we review the significant updates in the US natural gas industry, including New Fortress Energy’s milestone first Fast LNG delivery at Altamira Terminal and the severe disruptions extreme weather events can have on production and the supply chain.  

Using our real-time data monitoring of the LNG supply chain and our maritime VesselTracker tool, we review these events to see the effect they’ve had on the market. 

NFE’s first Fast LNG delivery at Altamira Terminal 

New Fortress Energy (NFE) announced that its first Fast LNG unit at the strategically positioned, Altamira Terminal off the coast of Tamaulipas, Mexico, delivered its first cargo in July. NFE’s inaugural Fast LNG unit, is a system designed for rapid and efficient liquefaction and marks a significant milestone for the company following the unit's mechanical completion earlier this year. 

It seems a second milestone may be achieved shortly as the Energos Princess tanker appears to be en route to Altamira. Our VesselTracker tool has been closely monitoring the tanker's course, and although its AIS destination is marked as “For Orders”, the vessel’s westward heading suggests arrival at Altamira instead of Corpus Christi LNG – the nearest facility. This movement demonstrates the terminal’s readiness to step into the global LNG market with the potential to boost Mexico's energy export capabilities.  

Monitor shipping vessels globally, maximise operational efficiencies and explore the world’s most accurate picture of shipping worldwide with our VesselTracker tool. 

Hurricane Beryl instigates Freeport LNG shut down 

On July 7th, at 10:00 CT, Freeport LNG’s powerline readings dropped to 0 mG, signalling that all liquefaction units were offline. In a statement issued by the facility’s operator, it announced that it had elected to proactively ramp down production as a precautionary measure against the arrival of Category 1 storm: Hurricane Beryl. Trains 1, 2, and 3, along with the pre-treatment facility, were shut down with the operator stating that operations would resume when it was safe to. The facility showed no activity for a number of days, with no feedgas entering and nominations remaining at zero. 

In response to the storm, other facilities like West Clear Lake and Dayton natural gas storage also halted operations as well as the Coast Guard announcing it had imposed condition "Zulu" to restrict all vessel movement and cargo operations. The impact of limited production extended to power plants across Texas, where gas deliveries dropped by approximately 100,000 MMBtu between July 6th and 8th, 2024.  

Don’t miss out on the latest updates impacting the US LNG supply chain. Stay ahead and receive real-time insights into production status using infrared technologies from our North American LNG Service.   

Freeport LNG resumes operations 

Following Hurricane Beryl’s landfall a week earlier, at 21:00 CT on the 15th of July, Freeport powerline readings started to rise, reaching a  value of 6 mG, indicating train 1 was back online. This came after our cameras captured dredging activity the day before and the return of power from Centrepoint – both of which were verified by reports. A full return of the trains is expected to take a number of weeks as the operator makes initial repairs to damaged fin fan air coolers as a result of the storm.  

Our cameras do not just track operational changes, they also capture real-time monitoring of other relevant activities like the dredging captured at Freeport. It’s this insight into events that allows us to make intelligent assumptions about why facilities are offline. 

Our North American LNG Service provides real-time monitoring of the LNG supply chain and is designed to give you dynamic insight into production status and maritime freight movements.  

Power consumption back up at Freeport 

On July 24th, at 12:00 CT, powerline readings at the Freeport LNG terminal began to rise after a brief drop earlier that morning. The readings dipped to 8.6 mG at 07:00 CT before climbing back to approximately 18 mG, which is roughly equivalent to two trains. The next day, the interstate feedgas to the Freeport facility was reported at 0.808 bcfd, marking an increase of nearly 300 mmcf DoD. Freeport is slowly bringing all trains back online following the disruptions caused by Hurricane Beryl, with two trains already partially operational. 

Our North American LNG Service continues to closely monitor the situation in real-time using advanced power line monitoring and infrared technology.