US LNG exporter Cheniere Energy ships 166 cargoes but net income hit by unfavourable derivative fair values
Cheniere Energy, the largest US liquefied natural gas exporter, shipped 166 LNG cargoes in the first quarter of 2024, though net profits were hit be unfavourable changes to the fair value of derivatives.
Freeport LNG now looks at re-start of Quintana Island plant in Texas in the second half of January 2023
Freeport LNG has updated the timing of the initial restart of its liquefaction facility on Quintana Island in Texas after repairs and refurbishment following the June 2022 fire.
“The company continues to make notable progress on its path towards the restart of liquefaction operations,” said Freeport.
“As of December 23rd, the reconstruction work necessary to commence initial operations is substantially complete, and the company is submitting responses to the last remaining questions included in the Federal Energy Regulatory Commission’s data request,” added the company.
Freeport explained that given the time needed for the regulatory agencies to review the company’s responses and to seek any necessary clarification, Freeport LNG now does not anticipate commencing the initial restart of its liquefaction facility until the second half of January 2023.
“The company continues to have close, collaborative engagement with the regulatory agencies and that engagement will continue as Freeport LNG works towards the safe restart of its facility,” stated Freeport.
When the explosion occurred, Freeport’s Chairman and Chief Executive Michael Smith and his team had been planning for an expansion from 15 million tonnes per annum of output from three Trains to 20 MTPA with the construction of a fourth Train.
Customers
Freeport LNG's main customers include Japan’s largest importer JERA Co. Inc., the Japanese utilities Kansai Electric and Osaka Gas as well as South Korean company SK E&S and buyers in Europe.
During the first quarter of 2022 before the accident, the Freeport plant exported 55 cargoes mainly to import terminals in Europe and North Asia
Freeport shut on June 8 after a pipe failure caused an explosion due to inadequate operating and testing procedures, human error and fatigue, according to a report by consultants hired by the company to review the incident and suggest action.
Even without Freeport volumes, the amount of gas flowing to US LNG export plants hit 13.0 billion cubic feet per day last week, the most since May 2022, 10 days before the Freeport shutdown.
The Freeport closure meant the nation’s other six large-scale export plants have been operating near full capacity.
European natural gas prices crash as North Asia LNG values briefly regain the limelight at least for February
The Japan-Korea Marker price for spot LNG cargoes for Japan, China and South Korea moved back to the trading limelight for the February 2023 trading window as the European Union benchmark gas price crashed from record highs amid less severe Continental weather, though withdrawals from EU gas storage increased.
LNG market considers impact of soaring US Henry Hub price on rising US cargo needs in Europe and Asia
Global natural gas and LNG markets have been given further considerations to add to the mix of North Asian spot cargo prices and European gas values as the NYMEX Henry Hub jumped to $8.80 per million British thermal units on perceived very high future LNG demand from Germany to Guangdong.
Polish Oil and Gas Company building chartered LNG fleet for more marketing of FOB cargo volumes
Polish Oil and Gas Company has signed a charter contract for four more LNG carriers and they will be placed into service to operate for the company’s trading unit as the Poles increase their marketing activities.
