Red Sea Chokepoints, Pirates Threaten U.S. LNG Shipments to Asia
In early November, MDN warned you about delays with LPG (propane) and LNG ships transiting the Panama Canal on their way to Asia (see Drought Along Panama Canal Causing Delays in Propane, LNG Exports). According to the Panama Canal Authority (APC), water levels at Gatún Lake are the lowest since at least 1995 due to an extended dry season and lower-than-normal precipitation on the Panama Canal. Several weeks later, the situation grew even more dire, with ships now required to pay money to reserve slots to transit the canal (see LNG Vessels Transiting Panama Canal Must Use Auction for Time Slots). Some LNG ships opt to travel further to the Suez Canal, which connects the Mediterranean Sea with the Red Sea, and the Red Sea with the Indian Ocean. But the Suez Canal has its own problems…
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Dominion Energy wants to build a liquified natural gas (LNG) storage facility in Person County, North Carolina, to enhance natural gas service reliability for residential and business customers in the growing region (see 
Yet another top-notch speaker at Hart Energy’s DUG Appalachia event in Pittsburgh was leading energy trader Dennis Kissler from BOK Financial. During his talk, Kissler said, “New England has dodged a bullet because they’ve actually seen mild winter followed by mild summer and a mild winter to the start of this year.” And, says Kissler, if we get a cold snap, New England is in for a nasty surprise: brownouts. “They’re going to realize they’re going to need another source of power.” And that source of power is natural gas.
In March 2022, MDN brought you news of a bold new plan by EQT CEO Toby Rice to “unleash” American LNG exports to not only help our friends in Europe but also to reduce the amount of coal use across the world, thereby lowering coal-related emissions including carbon dioxide (see 
The American Gas Association (AGA) is a trade organization founded in 1918 that represents and advocates for local energy companies that deliver natural gas throughout the United States. With more than 200 members (BIG companies), the AGA educates the public about the importance of natural gas, supports natural gas utilities in their efforts to make their operations safer, more efficient, and more environmentally friendly, and serves as a resource for local, state and federal policymakers when it comes to regulating the natural gas industry. The AGA is one of the country’s premier natural gas associations. The AGA recently published an article titled “American LNG is Critical for Global Prosperity.” The article says two new U.S. LNG export terminals are due to come online in 2024: Golden Pass in Texas and Plaquemines in Louisiana.
Cheniere Energy, Inc., the largest exporter of LNG in the U.S., announced two new agreements yesterday to sell more LNG to Europe. The first (and foremost) agreement is with ARC Resources, one of Canada’s largest natural gas producers, to sell 140,000 MMBtu per day (140 MMcf/d) of natural gas to SPL Stage 5 for a term of 15 years, commencing with commercial operations of the first train (“Train 7”) of the Sabine Pass Liquefaction Expansion Project. Yes, Canadian molecules will travel all the way to the Louisiana Gulf Coast to be liquefied and exported.
An increasingly important market for U.S. natural gas, especially gas coming from the Marcellus/Utica, is LNG exports. The gas that flows to LNG export plants feeding the plants so they can liquefy and export it, is called feedgas. The U.S. hit an all-time high of 13.5 billion cubic feet per day (Bcf/d) of feedgas flowing to LNG facilities in April of this year. Then exports slowed over the summer. However, as we recently reported, LNG cargo shipments picked up again in October, tying the all-time high of cargoes sent in a single month (see 
Venture Global’s Calcasieu Pass LNG export facility recently received Federal Energy Regulatory Committee (FERC) authorization to place the final three liquefaction blocks (7-9) into service (see 
In its assessment of global LNG supplies and natural gas stocks for the winter of 2023/2024, the U.S. Energy Information Administration (EIA) says the world (and the U.S.) has enough natural gas to meet demand. However, there’s a big BUT… EIA says, “but risks remain.” What are those risks? Possible extreme weather and supply issues.
On November 16, the Federal Energy Regulatory Commission (FERC) agreed to Dominion Energy subsidiary Virginia Electric and Power Company’s petition requesting that FERC declare Dominion’s planned LNG production, storage, and regasification facility in Greensville County, VA, would be exempt from FERC jurisdiction under section 7 of the Natural Gas Act (NGA). The project includes a 25-million-gallon LNG storage tank, 15 million cubic feet per day (MMcf/d) of liquefaction capacity, 500 MMcf/d regasification capacity, pretreatment facilities, and associated station yard piping.
A pair of analysts (authors/economists) have an article on the OilPrice.com website asking this question: Does the Natural Gas Industry Have a Future? They use data to paint a picture of a commodity (natural gas) that is, at best, in trouble. Why? The sales volume of natgas has gone up, but ever-so-slowly. The usage of natural gas by consumers to heat and cook is going down, especially in places that are banning it for those uses (like New York State). The picture painted by the authors appears to be pretty bleak. As usual, we have a different perspective.
Three weeks ago, MDN warned you about delays with LPG (propane) and LNG ships transiting the Panama Canal (see 
Earlier this year, Sempra Infrastructure, a subsidiary of Sempra, announced it had reached a positive final investment decision (FID) for the development, construction, and operation of the Port Arthur LNG Phase 1 project in Jefferson County, Texas (see