CNG/LNG

In early August, MDN told you about trouble brewing along the Gulf Coast between Venture Global LNG and its biggest customers: BP, Shell, Edison International (an Italian utility company), Repsol, and GALP Energia. Venture Global is building the Calcasieu Pass LNG export facility in southwestern Louisiana’s Cameron Parish, less than 50 miles south of Lake Charles. We suspect Marcellus/Utica molecules flow to the facility, hence our interest. While Venture Global is still working on completing Calcasieu Pass, it has, so far, already shipped over 200 cargoes of LNG, much of that during the mega-high prices of last year when the Russia/Ukraine war was at its peak. Yet none of those cargoes have gone to the facility’s contracted customers, which have sued Venture Global (see Repsol Joins Shell, BP in Suing Venture Global for Missed LNG). Venture Global has just asked FERC for permission to commence commercial service for the facility’s liquefaction blocks 7-9.
Read More “Venture Global Asks FERC to OK Some Commercial LNG Service”

U.S. exports of liquefied natural gas (LNG) fell, albeit modestly, in September from August as scattered outages at four gas-processing plants led to lower shipments. A total of 7.12 million metric tons of LNG left U.S. ports in September, down from the 7.32 million metric tons exported in August, according to data from LSEG vessel tracking. That’s down just 2.7%. Maintenance outages were at Freeport, Sabine Pass, Corpus Christi, and Cove Point. In fact, Cove Point is still down for maintenance.
Read More “U.S. LNG Exports in September Fell Due to Plant Outages”

We spotted the following headline for an S&P Global Commodity Insights story: “Closed LNG arbitrage endangers winter supply to Asia.” What the heck is LNG arbitrage, why is it “closed,” and how is that endangering LNG shipments to Asia? Those were the answers we went seeking by reading the S&P article. And, is there a connection to LNG exports coming from the U.S.?
Read More “LNG Arbitrage Prices Mean Little to No Spot U.S. LNG Going to Asia”

According to consulting powerhouse McKinsey & Co., world demand for LNG is forecast to see robust demand growth through at least 2040, and U.S. shale gas producers can effectively compete to fill a coming supply gap. But only if we can build enough new pipelines and liquefaction plants to meet the demand. And that’s the open question. As we report in a related story today (see Diversified CEO Says Gulf Coast has Brighter Future than Appalachia), it’s easier to build new pipelines in the Gulf Coast than in the Marcellus/Utica region. At the recent America’s Natural Gas Conference, McKinsey Partner Dumitru Dediu commented, “Without new infrastructure, we may see Henry Hub prices increasing and, respectively, other less competitive basins supplying these LNG projects.”
Read More “Shale Can Play Big Role in World LNG – But Not Without New Pipes”

Last week, MDN tracked a story that developed all week long. The Freeport LNG export facility, located on Quintana Island along the Texas Gulf Coast (south of Houston), is the second largest LNG export facility currently in operation. When operating at full capacity, Freeport can export 2.1 billion cubic feet per day (Bcf/d) of liquefied natural gas–roughly 20% of the U.S.’ entire LNG export output. A little over a week ago, the facility experienced some sort of issue (Freeport has been silent and refuses to respond), reducing output, at one point, to zero (see Freeport LNG Feedgas Drops to Zero, Indicates Ongoing Outage). Reuters reports that as of Friday, the plant is again operating at near capacity, with 1.9 Bcf/d of natgas flowing into the facility.
Read More “Freeport LNG Returns to Full Power Following Unexplained Outage”

U.S. LNG exports dropped in the week ending September 13 compared to the prior week because the Freeport LNG terminal shipped only one cargo during that time. The U.S. Energy Information Administration (EIA) said in its weekly natural gas report that 18 LNG carriers departed the U.S. between Sept. 7 and Sept. 13, down by eight cargoes compared to the week before. As we reported yesterday, Freeport is known to have canceled at least 3-4 cargos over the past week (see Freeport LNG Cancels 3-4 Cargoes Due to Outage, Now in 6th Day). Perhaps the situation is now changing. NGI reports pipelines feeding Freeport have begun to increase flows once again–up to 33% of capacity yesterday.
Read More “LNG Export Cargoes Down by 8 Last Week; Freeport Restarts?”

Three days ago, the feedgas (natural gas) flowing to the Freeport LNG export facility on Quintana Island, TX, dropped to roughly 622 MMcf/d, which is 31% of the facility’s normal capacity of 2 Bcf/d (see Feedgas to Freeport LNG Dropped Last Weekend, Down 69% Yesterday). Two days ago, feedgas flows to Freeport dropped all the way to zero (see Freeport LNG Feedgas Drops to Zero, Indicates Ongoing Outage). Yesterday, feedgas flows resumed, but at a trickle–370 MMcf/d, or roughly 18% of total capacity. Reuters and Bloomberg are reporting Freeport has canceled at least three and possibly four cargo ships that would have loaded at the facility due to the ongoing reduction/outage, which is now in its sixth day.
Read More “Freeport LNG Cancels 3-4 Cargoes Due to Outage, Now in 6th Day”