LNG

The latest US Government short-term energy outlook addressed issued such as high US natural gas inventories and out put as well as low prices and the impact on refined fuel from the forthcoming International Maritime Organization sulfur cap to reduce pollution in ports.

The United States has exported more natural gas than it imported for the second year in a row in the form of pipeline deliveries to Mexico and LNG shipments to scores of nations as more liquefaction capacity came on stream.

The US benchmark Henry Hub natural gas price, the main indicator of US LNG export values, averaged $4.15 per million British thermal units in November, up $0.87 per MMBtu from the October average and December future and spot prices have spiked to the highest since 2014.

US LNG cargoes were being shipped to the UK to take advantage of higher seasonal prices as US natural gas futures and spot prices also stayed high as weather reports were for colder medium-range temperatures.

After a 20-year decline in natural gas production in US federal waters of the Gulf of Mexico, a total of 16 production fields are currently in start-up mode, according to a report from the US Department of Interior.

US natural gas spot prices rose at most locations with the benchmark Henry Hub hitting $4.59 million British thermal units amid working gas storage concerns and high seasonal demand, including for new liquefied natural gas Trains coming on stream on the Gulf Coast.

US LNG exports were steady last week with five carriers departing from the Sabine Pass facility in Louisiana and one vessel from Cove Point compared with a total of seven the previous week as natural gas spot prices rose on higher export and power demand when production is also rising and storage levels dropping.

Oct 11 (LNGJ) - The US expects natural gas inventories to end October at the lowest levels for this time of year since 2005. “Natural gas storage inventories will total 3.3 trillion cubic feet at the end of October,” said the latest energy and winter fuel forecasts from the Energy Information Administration. “This level would be 14 percent lower than both the 2017 end-of-October level and the five-year (2013-2017) average for the end of October,” added the EIA. The report forecasts that Henry Hub natural gas spot prices would average $2.99 per million British thermal units in 2018 and $3.12 per MMBtu in 2019. Winter heating and energy prices will also rise. “US household expenditures for most major home-heating fuels will be higher this winter compared with last winter. Average increases vary by fuel and natural gas expenditures are forecast to rise by 5 percent,” said the EIA.

Sept 14 (LNGJ) - US LNG exports were steady in the week as six vessels departed compared with five the previous week. Four ships left Sabine Pass in Louisiana and two departed from Cove Point in Maryland. Two more carriers were lifting cargoes from Sabine Pass, according to the Energy Information Administration weekly report. “Dominion Energy, the operator of the Cove Point plant, activated a Severe Weather Plan in response to approaching Hurricane Florence,” said the EIA. The report noted that total US consumption of natural gas fell by 1 percent on the week and pipeline exports to Mexico decreased 7 percent. The Henry Hub spot price was last at $2.93 per million British thermal units. “Temperatures were cooler than normal across most of the country, but slightly warmer than normal west of the Rockies and in the Southeast,” said the report. At the Chicago Citygate, spot natural gas prices decreased 15 cents to $2.72 per MMBtu. California prices also fell to around $3.09 per MMBtu on the Pacific Gas and Electric citygate.

The US Government has issued a report focusing on how different drivers of macroeconomic growth may affect international energy markets in three heavily populated and high economic growth regions of the world, China, India and continent of Africa.