In this issue

 

Free ReadImproved execution of oil & gas upstream projects is now being achieved thanks to greater corporate discipline, more pre-FID planning and reduced project scope. This allows project delivery to finally…
Despite harsh rhetoric, both China and the United States can still avoid a damaging trade war, industry participants hope. Strikingly, China has not included US agricultural products and LNG on…
Skepticism abounds if the LNG Canada projects will ever be built in British Columbia but Shell Canada’s President Michael Crothers is adamant that project partners want to start construction at…
U.S. gas companies have been persistently waiting for new Appalachia takeaway capacity – notably the Rover Phase-2 pipeline – to come online this year so the region can provide the…
Developing Alaska’s Arctic National Wildlife Refuge (ANWR) would substantially increase U.S. crude oil and natural gas production after 2030. The state of Alaska holds an estimated 36 billion barrels of…
Woodside Petroleum is close to making a decision about whether to continue to invest in Sempra Energy’s Port Arthur LNG project in Texas. Speaking at the World Gas Conference in…
‎The TechnipFMC-Kiewit partnership has selected as EPC contractors for transforming Sempra Energy’s LNG import terminal at Costa Azul in northern Mexico into a medium-scale export plant. The project will be…
Dry natural gas production in the United States is about to reach a fresh record of 81 Bcf per day, spurring LNG export growth and pushing down prices this year. According…
Gaining access to shale assets in Argentina, Qatar Petroleum has acquired a 30% stake in ExxonMobil’s prolific Vaca Muerta oil and gas play in the onshore Neuquén basin in Argentina.…
Canada, the largest energy trading partner of the United States, consistently exceeds the value of U.S. energy exports to Canada by a large margin. According to EIA figures, energy accounted…
Unplanned downtime can cost an LNG facility as much as $4 million per day. With potential costs so high, profitability is largely linked with unplanned downtime. According to GE Power…
Shifting tact, Uniper CEO Klaus Schäfer has announced plans to expand the utility’s business supplying LNG to power generators in South America, Middle East and Asia. Speaking to investors he…
Nearly two-thirds of oil and gas sector leaders, surveyed by the Norwegian classification society DNV GL, plant to boost spending on gas projects in 2018, with gas expected to overtake…
Against the run of play, LNG buyers are prepared to pay a premium for supply from Australia and the United States – described by Standard & Poor’s as “the swing”,…

News Nudges

U.S. net gas exports double in H1-2019 and keep growing

Start-up of two liquefaction trains – Cameron LNG Train 1 and Corpus Christi LNG Train 2 –have pushed total U.S. net gas exports to 4.1 billion cubic feet per day (Bcf/d) in the first half of this year, more than double pre-year levels. Apart from LNG, pipeline gas is exported to Canada and Mexico. As of June, total U.S. LNG export capacity reached 5.4 Bcf/d across four facilities and nine liquefaction trains – a significant rise compared with 2.0 Bcf/d net exports in 2018. Net natural gas exports is forecast to continue rising through the end of 2019 as additional LNG export capacity comes online and pipeline infrastructure in Mexico is placed into service. In its Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) foresees net gas exports averaging 4.6 Bcf/d in 2019 and 7.2 Bcf/d in 2020. Cameron Train, the fourth U.S. LNG placed into service since February 2016, was followed by Freeport LNG Train 1 and the small-scale Elba Island LNG venture. Together, these three project are seen to nearly double U.S. LNG export capacity to 8.9 Bcf/d by the end of 2020. Although U.S. LNG exports have grown substantially, most U.S. natural gas trade is transported via pipeline across shared borders with Canada and Mexico. In the first half of 2019, net exports of natural gas by pipeline to Mexico grew by 5%, and net exports of natural gas by pipeline to Canada remained relatively flat. Exports to Canada surged when the second phase of both the Rover pipeline and the new NEXUS pipeline entered service, allowing gas flows from the Appalachian Basin to the St. Clair point of exit northeast of Detroit. Deliveries to Mexico grew following the start-up of the Texas-Tuxpan pipeline, transporting gas from the U.S. Permian Basin.