Golden Pass LNG Activity Normalizes; Permian Lateral Cleared to Proceed

Why It Matters

Stabilizing nominations and new feed‑gas infrastructure enhance Golden Pass’s operational reliability, supporting broader U.S. LNG export growth amid rising global demand. The developments also illustrate how domestic production buffers Gulf Coast terminals and shifts trade flows toward Asia.

Key Takeaways

• Golden Pass nominations back to ~1.5% capacity.
• 1.1‑mile lateral will tap up to 1 Bcf/d Permian gas.
• US gas production averages 110 Bcf/d, easing Gulf Coast demand.
• U.S. LNG exports forecast 2.47 Mt, Asia demand rising.
• European LNG cargoes expected to drop 5‑6 shipments.

Pulse Analysis

The recent normalization of nominations at Golden Pass LNG signals a return to steady operations after a short period of elevated flows that likely reflected intensive equipment testing. By bringing volumes back to roughly 1.5% of capacity, the terminal can focus on reliability and schedule adherence, factors that are critical for shippers seeking consistent feed‑gas delivery. This stability also reassures investors that the facility’s performance aligns with its long‑term throughput targets.

The approval of a 1.1‑mile, 42‑inch lateral to the Permian Basin marks a strategic expansion of Golden Pass’s feed‑gas portfolio. Connected to Kinder Morgan’s 218‑mile Trident Intrastate Pipeline, the new tie‑in could unlock up to 1 Bcf/d of West Texas supply, diversifying the terminal’s gas sources and reducing reliance on a single pipeline. Such infrastructure upgrades not only increase the plant’s flexibility but also position it to capture higher margins as spot gas prices fluctuate across regional markets.

On a macro level, U.S. natural‑gas production now averages 110 Bcf/d, a level that cushions Gulf Coast LNG terminals from supply constraints while global demand pivots toward Asia. Forecasts of 2.47 Mt of LNG exports for the week of Feb 16 reflect a modest rebound, driven by stronger orders from South Korea and other Asian buyers, even as European cargoes are expected to dip by five to six shipments. This shift underscores the growing importance of the United States as a swing‑source exporter, capable of redirecting volumes to higher‑value markets when geopolitical or seasonal factors reshape trade flows.

Golden Pass LNG Activity Normalizes; Permian Lateral Cleared to Proceed

By Jacob Dick

Published ≈ 8 hours ago

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A look at the global natural gas and LNG markets by the numbers

• 3,493 MMBtu: Nominations to the Golden Pass LNG facility have been revised down and returned to average levels after two days of reported spikes in flows, according to Wood Mackenzie pipeline data. Flow data indicated significant equipment testing could be underway at the facility after levels jumped to near 15 % of capacity on Monday and Tuesday. Those figures have since been revised to around 1.5 % of capacity at the highest levels. Nominations to the terminal were reported at 3,492 MMBtu on Wednesday, near the same levels reported since gas began flowing into the system last summer.

• 1.1 mile: Golden Pass LNG has been given the green light to begin construction on a 1.1‑mile, 42‑inch lateral to connect the terminal to an alternative feed‑gas supply from the Permian Basin. The Federal Energy Regulatory Commission previously approved the lateral project last month. Once completed, Golden Pass will be connected to up to 1 Bcf/d of West Texas supply through the 218‑mile, 42‑inch and 48‑inch diameter Trident Intrastate Pipeline system developed by Kinder Morgan Inc.

• 110 Bcf/d: Elevated feed‑gas demand at Gulf Coast LNG terminals is being offset by swelling natural‑gas production in the lower‑48, according to Wood Mackenzie data. Nominations to export facilities were estimated at 19.3 Bcf/d over the past seven days. Meanwhile, production has ticked up to an average of 110 Bcf/d during the same period. Canadian imports added another 5.3 Bcf/d to U.S. markets.

• 2.47 Mt: U.S. LNG exports are expected to rebound the week of Feb. 16 on an uptick of demand from Asian buyers, according to Kpler data. Anticipated LNG exports from U.S. terminals were estimated at 2.47 million tons for the week, up 0.25 Mt from the week prior. The majority of volumes are expected to head to Europe, though the region’s imports could fall by 5–6 cargoes. Asian buyers—mostly in South Korea—are expected to receive an additional 6–7 cargoes compared with the prior week.