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First Look - LNG feedgas demand reaches record high, above 16 Bcf/d

Prices advance on Tuesday after drone attack on Russian oil pipeline (Reuters)
- WTI crude futures were up 75c from Friday’s close to $71.49 a barrel
- Senior Russian officials reported that Ukrainian drones attacked a Kazakh export pipeline in Russia
- Russian oil transport company Transneft said the damage could reduce oil transit volumes from Kazakhstan by about 30% and take up to two months to repair
  - The pipeline pumps about 1% of global crude supply and could affect global oil flows
- US and Russian officials also held their first meeting in Riyadh on Tuesday to discuss the war in Ukraine
OPEC+ to consider pushing back supply increases (BBG)
- The alliance is contemplating pushing back its monthly supply increases that were set to start in April
- This would mark the fourth time OPEC+ has postponed its 120 MBbl/d hike plan to bring back halted production
- OPEC+ does not want oil prices to drop below the $70-$74 range and is willing to forgo further market share to maintain higher prices, according to analysts

Natural gas prices are slightly lower from Friday, ahead of cold weather event
- This week is expected to be the second coldest of the season, with Lower 48 temperatures averaging about 36.3 °F, compared to the week of January 24, which saw temperatures fall to 31.9 °F
  - This should lead to an above-average draw from gas storage
  - Temperatures are expected to return to the ten-year average following this week
- Freeze-offs have begun impacting Northeast production levels, with total US output falling to around 103.5 Bcf/d
LNG Feedgas demand hits record high
- LNG demand has been particularly strong in 2025 as the newest facility, Plaquemines LNG, ramps up
- Total US LNG feedgas volumes hit 16.07 Bcf/d this morning and 16.11 over the weekend, a new record high
- Most facilities are operating near their maximum capacity, with the exception of Calcasieu Pass, where volumes have been limited by about 0.5 Bcf/d over the past few months
  - The facility is expected to officially begin commercial operations this spring, which could coincide with higher feedgas volumes
- US LNG demand will be throttled this summer as maintenance and higher ambient temperatures reduce plant efficiency, but volumes should still be higher relative to last summer