US freeze-up affects local natural gas and global oil but LNG values rise along with worldwide liftings
Worldwide liquefied natural gas export plants increased their overall liftings, apart from in the US where the markets were affected locally for natural gas and globally for oil by freezing weather causing power outages that hit US output, while North Asia spot LNG prices rose on firm demand.
US cargoes increase
May 8 (LNGJ) - The weekly US LNG shipments increased to 15 cargoes this week compared with 11 in the previous week. Six cargoes left Cheniere Energy’s Sabine Pass plant in Louisiana, while three departed from Cheniere’s Corpus Christi facility in Texas and three from Sempra Energy’s Cameron facility in Louisiana. At the three other plants, two departed from the Freeport plant in Texas, one from Cove Point in Maryland and none from the newest facility, the Elba Island plant in Georgia, according to the Energy Information Administration.
US ships 17 cargoes
April 17 (LNGJ) - The US shipped 17 LNG cargoes from its export plants in the past week . Seven shipments left Cheniere Energy’s Sabine Pass plant in Louisiana, while four departed from Cheniere’s Corpus Christi facility in Texas. At the four other plants, three were shipped from the Freeport plant in Texas, three departed from Sempra Energy’s Cameron facility in Louisiana. However no shipments left Dominion Energy’s Cove Point in Maryland nor from the newest facility, the Elba Island plant in Georgia, according to the Energy Information Administration weekly report.
US natural gas rise
March 4 (LNGJ) - US natural gas consumption increased by 3 percent in 2019, reaching a record of 85.0 billion cubic feet per day (Bcf/d), according to the Energy Information Administration. New natural gas-fired electric capacity and lower natural gas prices led the increase in domestic natural gas consumption.
US natural gas consumption grew in the electric power sector by 2.0 Bcf per day, or 7 percent, but remained relatively flat in the commercial, residential, and industrial sectors. Exports by pipeline gas to Mexico and liquefied natural gas elsewhere grew by 0.5 Bcf per day and 2.0 Bcf per day respectively.
US forecasts high natural gas levels and low prices and considers IMO sulfur cap impact
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.
US ships record LNG volumes as more plants set to start and Freeport gets expansion permit
The US shipped a record 11 liquefied natural gas cargoes in the past week compared with seven in the previous week as the nation’s three facilities ramp up production and three other plants are scheduled to start commercial operations in the next three months.
US LNG exports and domestic natural gas demand fall as storage hits lowest since 2014
The US exported five LNG cargoes last week, a drop from seven shipments in the previous week, as domestic natural gas demand fell by 10 percent and inventories ended the winter heating season at their lowest level since 2014.
Growing gas-fired power capacity in US provides ready competition for LNG export demands
The US is increasing its domestic natural gas demand for gas-fired power plants as the number of facilities has now overtaken coal-fired plants and the power industry competes with liquefied natural gas export projects for abundant feed-gas resources.
US LNG exports affected by Gulf Coast fog as milder weather moderates natural gas prices
US liquefied natural gas exports decreased in the past week after foggy conditions closed the Sabine Pass waterway on the Gulf Coast to larger ships, while on the domestic natural gas market prices dropped as warmer weather arrived along with milder forecasts and smaller-than-expected withdrawals from the nationwide gas storage system.
US LNG exports rise even as feed-gas levels drop amid freezing weather and domestic surge
US liquefied natural gas exports rose in the past week even as feed-gas levels were lower and freezing weather in the Midwest and elsewhere increased domestic demand and led to a rise in pipeline imports from Canada.
LNG exports rose to seven shipments, six from Sabine Pass in Louisiana and one from Cove Point in Maryland, compared with six the previous week, while one vessel was lifting a cargo at Sabine Pass through January 31.
“Natural gas feedstock deliveries to US liquefaction facilities have decreased during the past two weeks and averaged 3.9 billion cubic feet per day compared with an average 4.9 Bcf/d from January 1 to January 15,” according to the weekly report from the Energy Information Administration.
“The Corpus Christi terminal has not had any feedstock deliveries since January 20, when the facility exported its first five commissioning cargoes,” noted the EIA.
Domestic natural gas demand surged, driven by the residential and commercial sectors amid the freezing weather.
“In the residential and commercial sectors, consumption increased by 11 percent, reaching a near-record high of 70.9 Bcf per day on January 30, the second-highest value ever recorded (the highest was 71.6 Bcf per day in January 2014),” stated the report.
The EIA said that supply remained flat. “The average total supply of natural gas remained the same as in the previous report week, averaging 94.0 Bcf per day,” said the report.
It noted that average net imports from Canada increased by 7 percent from the previous week because of the cold weather.
On the regional price front, there were rises in the Midwest and Chicago regions because of the historically cold weather.
Northeast prices were also higher, while the benchmark Henry Hub price declined 14 cents on the week to $2.96 per million British thermal units.
“A polar vortex blanketed the Midwest and Northeast at the end of the report week,” said the EIA.
“At the Chicago Citygate, the most heavily affected major trading hub, prices increased $1.88 per MMBtu from $3.11 per MMBtu to $4.99 per MMBtu with a weekly high of $7.46 per MMBtu on January 29,” added the report.
Prices rise sharply in Northeast cities during the polar vortex. At the Algonquin Citygate, which serves Boston, prices went up $5.57 from $3.53 per MMBtu to $9.10 per MMBtu after reaching a weekly high of $10.04 per MMBtu.
“At the Transcontinental Pipeline (Transco) Zone 6 trading point for New York City, prices increased $9.53 from $2.98 per MMBtu to their weekly high of $12.51 per MMBtu,” said the report.
Shale-gas prices in the Appalachian region also rose though at a slower pace. Tennessee Zone 4 Marcellus spot prices increased 16 cents on the week to $2.92 per MMBtu.
“Prices at Dominion South in southwest Pennsylvania rose 22 cents to $2.94 per MMBTU,” said the EIA.
In the storage report, net withdrawals from storage totaled 173 Bcf for the week ending January 25, compared with the five-year (2014-2018) average net withdrawals of 150 Bcf and last year's net withdrawals of 126 Bcf during the same week.
“Working gas stocks totaled 2,197 Bcf, which is 328 Bcf lower than the five-year average and 14 Bcf lower than last year at this time,” added the report.
