NYMEX NatGas Price Down 10% After High Storage Number Released
Strap in–the roller coaster ride continues. Yesterday the NYMEX Henry Hub front-month (July) futures contract for natural gas plunged 10%, by $0.62, following news that more gas was stored (“injected”) than previously anticipated by analysts and traders. Storage inventories rose to 2.169 Tcf (trillion cubic feet) for the week ended June 17 following a 74 Bcf (billion cubic feet) injection. Most people thought the injection would be no more than 60 Bcf. No doubt the ongoing outage at Freeport LNG pushing an extra 2 Bcf/d on the domestic market had something to do with the extra storage build. Models predict cooler weather is coming in the next few weeks. Throw it all into the pot–higher storage, Freeport offline, and cooler weather–and traders got spooked.
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Two weeks ago the second-largest LNG export terminal in the U.S., Freeport LNG located near Galveston, Texas, experienced an explosion and fire (see 
Wrapping up the coverage of the recent Hart Energy DUG East Conference, Pittsburgh Business Times reporter Paul Gough pulled together comments by various speakers on the topic of LNG and whether or not the Marcellus/Utica can and will benefit from a growth in American LNG exports. Opinions by some of the biggest drillers in the M-U diverged on this topic.
Have you been watching the NYMEX Henry Hub futures price? It’s been dropping like a rock since last week when a fire caused Freeport LNG and its 2 Bcf/d of exported LNG to go offline (see 
Freeport LNG provided an update yesterday to inform the public about what happened at its export facility just south of Galveston, Texas, situated on the Gulf Coast. Freeport said an “incident” occurred in pipe racks that support the transfer of LNG from the facility’s LNG storage tank area to the terminal’s dock facilities located on the intracoastal (i.e., north) side of Freeport LNG’s dock basin. None of the liquefaction trains, LNG storage tanks, dock facilities, or LNG process areas were impacted. Freeport originally said the facility would be back online in three weeks. That’s a pipe dream (pun intended). Yesterday Freeport revised their estimate to three months minimum before partial operations are back online. It will be the end of the year for full operations exporting all 2 Bcf/d are back online, according to Freeport.
In July 2018 Eagle LNG officially opened its Maxville, Florida (suburb of Jacksonville) liquefaction facility to first liquefy then transport LNG to Crowley’s new LNG bunkering facility at the Port of Jacksonville (Jaxport) where the LNG is used to fuel two Crowley LNG-powered ships designed to carry both containerized and roll-on/roll-off cargo (see 
In years gone by arrogant Europeans turned their noses up to American “fracked” LNG (see 
Last week MDN told you about the June 8th explosion and fire at Freeport LNG located near Galveston, the second-largest LNG export terminal in the U.S. (see 
We spotted news that the country of Ukraine, under attack by Russia, has cut a deal (a memorandum of understanding) with Canada’s Symbio Infrastructure to import LNG and green hydrogen. Symbio is building a 10.5 million mt/year LNG export facility in Quebec and will export the LNG and H2 from there. Wait just a minute…Quebec (the province) recently passed a new law outlawing all oil and natural gas production throughout the province (see 
EQT CEO Toby Rice is and has been on a mission–to spread the gospel of LNG (see 
The number-crunchers at our favorite government agency, the U.S. Energy Information Administration, published their analysis of LNG exports for the first four months of 2022. Unsurprisingly, because of the Ukraine war, EIA found that 74% of the LNG exported from the U.S. during that time has gone to Europe. It’s pretty much a reversal of last year when 34% of our LNG went to Europe. Last year most of our LNG went to Asia–China and South Korea. The percentages of how much U.S. LNG goes to Europe and how much goes to Asia have changed places over the past year.
Broadcasting its intent to expand aggressively in the LNG export market, Chesapeake Energy is advertising to hire a liquefied natural gas (LNG) advisor. The LinkedIn ad shows that so far 41 people have applied. The ad opens by saying the company is looking for “a lead for new business opportunities for Chesapeake for liquified natural gas (LNG) and provides guidance on LNG Marketing activities in order to optimize the company’s revenue.” And hey, good news: The job can be 100% remote!