Feedgas, which is the gas that flows to LNG export facilities, hit the lowest levels it has seen since last October according to the U.S. Energy Information Administration. As we pointed out two weeks ago, natural gas prices are staying low because worldwide demand and prices for LNG is currently low (see Why Does NatGas Price Stay So Low with Falling Production?). Low prices will continue for the foreseeable future, with some 20 U.S. LNG export cargoes for June now canceled and another 45 for July rumored to be canceled.
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Category: CNG/LNG
PWC Sells U.S. Magnolia LNG to Different Company for $2M
Two weeks ago MDN brought you the news that consulting powerhouse PricewaterhouseCoopers (PWC), which had been hired to liquidate the assets of Australian company LNG Limited (LNGL), had found a buyer for the Magnolia LNG export project for $2.25 million (see PWC Sells U.S. Magnolia LNG to U.K. Company for $2.25M). Scrub that. The buyer never came through with the money, so PWC has found a second buyer, for $2 million. The fire sale continues.
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New Pointe LNG Facility in La. Would Export Marcellus Gas
It looks like another new market may open up for Marcellus molecules along the Gulf Coast. Louisiana LNG, which has been renamed Pointe LNG, began life in 2014. The project didn’t initially “gain traction” but is now rekindled. The co-founders of the project have hired Whitehall & Co as their financial advisor to help them locate $4 billion to get it built. What’s that? How does a Gulf Coast LNG plant tie into the Marcellus?
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Why Does NatGas Price Stay So Low with Falling Production?
It’s kind of a mystery. The supply of natural gas produced in the U.S. has been declining over the past few months. Oil drillers are laying down rigs (historic lows for rigs in the oil patch), and companies are shutting in oil wells–all of which means there’s less associated natural gas being produced. M-U drillers like EQT (the largest natgas producer in the U.S.) are curtailing huge quantities of their production (see EQT Shuts in 33% of NatGas Production in Pennsylvania, Ohio). And yet, with all of this gas being removed from the market, the price of natgas is still stubbornly low. Why?
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Kinder Morgan Restarting 2 of 3 Shut Down Elba Island LNG Units
Last week MDN reported about a compressor fire at the Kinder Morgan’s Elba Island LNG export facility in Georgia (see Compressor Fire Shuts Down Three Elba Island LNG Export Units). The fire was in the compressor train #2. Just to be safe, Kinder Morgan shut down trains 1-3. The good news is that Kinder is restarting #1 and #3 this week.
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Regulators Reject Pieridae/Shell Plan to Feed Nova Scotia LNG
Pieridae Energy wants to build an LNG export plant in Nova Scotia, Canada. The project is called the Goldboro LNG project. We’ve tracked the project for years hoping Marcellus/Utica gas might one day feed it (see our Goldboro LNG stories here). Our hopes to have M-U gas feed Goldboro were dashed when Pieridae announced a deal last June to buy assets from Shell in Western Canada with plans to pipe the gas to the Goldboro plant (see Pieridae Buys Shell Assets in W Canada to Feed Nova Scotia LNG). Canadian regulators in Alberta have just scuttled the deal, refusing to grant permission.
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Compressor Fire Shuts Down Three Elba Island LNG Export Units
Just when it seemed everything was going great to get all 10 mini-trains up and running at the Elba Island, Georgia LNG export facility (owned and operated by Kinder Morgan), a compressor fire earlier this week has caused the shutdown of three functioning units along with a fourth unit in the process of commissioning.
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Work on New Fortress LNG Export Plant in Wyalusing Heats Up
We have some exclusive news to share about a northeast PA LNG plant project. In August 2018, New Fortress Energy announced plans to build at least one LNG liquefying plant in Wyalusing, PA (see Big News! Marcellus LNG Export Plant Coming to Landlocked NEPA). The plant will cost $800 million to build and use some 500 workers to build it. Work began last year to clear the site in preparation for construction (see Work Continues to Clear Site for NEPA Landlocked LNG Export Plant). The big news is…
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DRBC, New Fortress Crush Antis’ Arguments Against LNG Export Dock
Earlier this week the Delaware River Basin Commission (DRBC) held a promised hearing to consider its previous decision to approve a request by New Fortress Energy to build a $96 million 1,600-foot-long pier/dock on the Delaware River. The dock will be used for docking and loading two ships at a time with LNG. The only parties allowed to speak were DRBC, New Fortress, and THE Delaware Riverkeeper, the arrogant Big Green group trying to stop the dock and the LNG facility in northeast PA that would feed it.
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New Fortress 1Q: No COVID Money, Raises for Frontline Workers
New Fortress Energy, which focuses on producing, exporting, transporting, and importing (in other countries) LNG marches to the beat of a different drummer. The company recently issued its first-quarter 2020 update. On a conference call with analysts, New Fortress founder and CEO (and billionaire) Wed Edens said his company hasn’t applied for nor accepted any government money re the COVID-19 pandemic. They also haven’t laid anyone off. In fact, New Fortress boosted the salaries of frontline fuel workers by 50% for the months of April and May in recognition of the jobs they are doing and the risks they face during the pandemic.
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PWC Sells U.S. Magnolia LNG to U.K. Company for $2.25M
LNG Limited (LNGL), based in Australia, has been working on a couple of North American LNG export projects over the past half-decade or more. One of them, Magnolia LNG, is located in Louisiana will potentially export M-U molecules. Magnolia has all of its permits and is ready to build–if someone has the money to build it. It won’t be LNGL. The company recently imploded and ended up in the hands of a bankruptcy administrator who is now selling off the assets.
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Pieridae Delays Future LNG Exports from Goldboro N.S.
Canada’s Pieridae Energy, planning to build the Goldboro LNG project in Nova Scotia, announced in April it would not make a final investment decision (FID) to build the $10 billion project until “conditions improve” (see Pieridae Delays FID on Nova Scotia Goldboro LNG Export Project). Pieridae has a contract with German utility Uniper to deliver LNG beginning late 2024/early 2025. That timeline has now changed too.
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KM’s Elba Island LNG Fires Up 8th Liquefaction Unit
Last December the very first load of Marcellus molecules liquefied at the Elba Island, Georgia LNG export facility was loaded onto a ship and headed to Pakistan (see Elba Island Finally Exported First Marcellus LNG Cargo on Friday). Elba Island is a series of 10 small liquefaction units. At last check, in early March, the first five units were up and running (see First 5 Elba Island LNG Mini-Plants Now Online Exporting Marc Gas). You can add another couple of units to the list.
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LNG Limited, Building US & Canada LNG Export Plants, Implodes
LNG Limited (LNGL), based in Australia, has been working on a couple of North American LNG export projects over the past half-decade or more. One of them, called Bear Head, would be built in Nova Scotia, Canada and (potentially) export Marcellus/Utica molecules. The other, Magnolia LNG, would be located in Louisiana and yes, potentially export M-U molecules as well. LNGL was in the process of selling itself and its LNG projects to Singapore investor LNG9 PTE for $75 million when LNG9 pulled out of the deal (see Investor Bails on Nova Scotia Bear Head LNG Export Project). Now LNGL is imploding.
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US LNG Export Cargoes Canceled as Coronavirus Destroys Demand
The shutdown of the world’s economy is not only affecting oil usage (and prices), it’s also affecting the usage and prices of LNG–liquefied natural gas. LNG and natgas usage are down around the world–particularly in Europe and Asia. Less demand means lower prices, and (in this case) the cancelation of a number of tankers that were supposed to deliver our LNG to other countries. Reuters is reporting 23 or more U.S. LNG cargoes for June loading have now been canceled.
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IGU’s 2020 World LNG Report – World LNG Trade up 13% Last Year
In contrast to today’s story about LNG being on the ropes (see US LNG Export Cargoes Canceled as Coronavirus Destroys Demand), the International Gas Union (IGU) published its annual LNG report yesterday. The report highlights the material changes in the global LNG industry happening in 2019. The worldwide LNG trade increased by 13% to a total of 354.7 MT (million tons). The Marcellus/Utica gets a prominent shoutout in the report.
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