CNG/LNG

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”

Two days ago, the natural gas (feedgas) flowing to the Freeport LNG export facility on Quintana Island, TX, had dropped to roughly 31% of its potential capacity (see Feedgas to Freeport LNG Dropped Last Weekend, Down 69% Yesterday). Yesterday, feedgas flows to Freeport dropped all the way to zero. A company spokesperson declined to comment on the situation.
Read More “Freeport LNG Feedgas Drops to Zero, Indicates Ongoing Outage”

The United States exported more liquefied natural gas (LNG) than any other country in the first half of 2023, displacing both Australia and Qatar, which previously rotated in holding the top spot. The U.S. exported 11.6 billion cubic feet per day (Bcf/d) during 1H23, up 4% (0.5 Bcf/d) from 1H22. Australia was #2 in 1H23, exporting 10.6 Bcf/d. Qatar was #3 with 10.4 Bcf/d.
Read More “U.S. Grabs Top Spot as LNG Exporter Worldwide First Half of 2023”

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 Port Arthur LNG Pulls Trigger on FID, Tells Builder to Start Work). Sempra worked out all of the remaining financial aspects of the deal, including the sale of a non-controlling piece of the project to investment firm KKR and forming a joint venture with ConocoPhillips. Yesterday, Sempra announced it had closed on the deal with KKR.
Read More “Sempra Sells 42% of $13B Port Arthur LNG Phase 1 to KKR”

According to multiple sources, feedgas (natural gas) flows to Freeport LNG (south of Houston, located on Quintana Island, Texas), the second-largest U.S. LNG exporter, dropped sharply over the weekend and remained down for the third day in a row on Monday. Freeport has the capacity to accept 2 Bcf/d (billion cubic feet per day) of feedgas. As of yesterday, the plant accepted 622 MMcf for the day, about 31% of maximum capacity. What’s going on?
Read More “Feedgas to Freeport LNG Dropped Last Weekend, Down 69% Yesterday”