LNG

Mexico and South Korea each received four cargoes and China took delivery of two as a total of 16 shipments were delivered from the Sabine Pass plant in Louisiana at lower average prices compared with 15 loaded in the previous month, according to the latest data released by the Department of Energy (DoE).

Tellurian Inc., developer of the Driftwood LNG project on the Gulf Coast of Louisiana, said it had agreed to acquire acreage in Haynesville Shale play in the northwest of the state to add potential gas assets to its portfolio for future export. 

Drilling activity and production of crude oil and natural gas is picking up in Oklahoma’s Anadarko Region, notably in two areas commonly known as the STACK (Sooner Trend Anadarko Canadian and Kingfisher) and the SCOOP (South Central Oklahoma Oil Province) plays. 

Despite the havoc causes by recent hurricanes along the Gulf Coast of Texas and Louisiana, US dry gas production is set to rise to an average of 73.7 billion cubic feet per day in 2017. This year’s output is a 1.4 Bcf/d increase from the 2016 level, and the EIA says 2018 output is also likely to surge. 

Only after 2030, pipeline gas and LNG is seen regain market share in Europe, displacing nuclear power and lignite coal. Before that time, strong renewable energy expansion is forecast to eradicate the growth of gas use in the power sector, according to the EIA’s just-released International Energy Outlook 2017 (IEO2017). 

As Brexit unfolds, the premium on Britain’s National Balancing Point (NBP) and the price volatility in relation with the Dutch Title Transfer Facility (TTF) is likely to play into the hands of LNG sellers and trading houses who are seeking to take advantage of the widening NBP-TTF spread.

Having moved to a competitive market, Mexico’s Energy Regulatory Commission (CRE) released its first monthly price report in late August which shows that Mexican marketers sold gas at $4.10/mmBtu on average in July. CENAGAS, Mexico’s pipeline system operator also launched its natural gas capacity reservation system with electronic bulletin boards for posting natural gas flows. 

The US Federal Energy Regulatory Commission (FERC) has granted a permit to Delfin LNG – the most advanced US floating export development – that will allow developers to transport gas to its proposed deepwater port terminal to be located 30 miles offshore Louisiana in the Gulf of Mexico. 

Edison, capacity holder in the Adriatic LNG import terminal, has signed an agreement to receive 1 mtpa of shipments from Calcasieu Pass liquefaction and export plant, developed Venture Global.

The Atlantic LNG production plant at Point Fortin, Trinidad, has been shut and evacuated after a fire flared up at one of its power generating units. The company said it contained and extinguished the fire, with no injuries reported.