LNG

Intercontinental Exchange, the leading global provider of energy trading platforms for futures and options, has issued natural gas and oil trading volumes and related statistics for March and for the first quarter of 2023 when there was a jump in derivatives for natural gas and crude oil and interest rate risk management also increased.

US LNG exports were slightly lower in the past week as natural gas day-ahead and futures prices jumped after colder weather swept across the nation and domestic demand rose along with production.

Eight LNG vessels departed from the export plants, six from Sabine Pass in Louisiana, one from Cove Point in Maryland and one from Corpus Christi in Texas, compared with 10 carriers the previous week, while two other vessels were lifting cargoes through January 17.

“Henry Hub spot prices rose from $2.91 per million British thermal units on January 9 to $3.61 per MMBtu,” said the Energy Information Administration in its weekly report.

The EIA said it estimated that the Sabine Pass LNG facility has been running above 100 percent of its nominal baseload liquefaction capacity in the winter months.

“Annual 2018 utilization at Sabine Pass is estimated at 106 percent of the baseload and 91 percent of peak capacity,” said the report.

“The Cove Point terminal has also run above 90 percent of its baseload capacity in November-December 2018, with an overall utilization of 67 percent of baseload and 62 percent of peak capacity since the facility started operation in March 2018,” added the EIA.

US domestic natural gas spot prices rose at most locations and net withdrawals from working gas in the previous week totaled 81 billion cubic feet.

“Working natural gas stocks are 2,533 Bcf, which is 3 percent lower than the year-ago level and 11 percent lower than the five-year (2014-2018) average for the week,” said the report.

“Below-freezing temperatures across most of the Northeast led to higher prices,” it added.

Prices at the Algonquin Citygate serving Boston rose by $4.78 per MMBtu from $6.60 per MMBtu to a high of $11.38 per MMBtu.

“Prices at the Transcontinental Pipeline Zone 6 trading point in New York City rose by $2.13 from $3.12 per MMBtu to $5.25 per MMBtu,” said the EIA.

Tennessee Zone 4 Marcellus shale-gas spot prices increased from $2.71 per MMBtu to $3.43 per MMBtu.

Prices at the Pacific Gas & Electric Citygate in Northern California rose $1.20 from $3.42 per MMBtu to $4.62 per MMBtu.

The average total supply of natural gas increased in the week by 1 percent to 94.4 billion cubic feet per day and total US consumption of natural gas rose by 18 percent, averaging 97.2 Bcf/d.

“Natural gas consumed for power generation rose 14 percent. Industrial sector consumption increased 5 percent week over week and in the residential and commercial sectors, consumption increased 30 percent, averaging 46.9 Bcf/d, as winter weather swept through most of the Lower 48 states,” said the report.

Pipeline natural gas exports to Mexico declined by 1 percent, averaging 4.7 Bcf/d.

The US began exporting LNG from the Lower 48 states in February 2016, when the Sabine Pass liquefaction terminal in Louisiana shipped its first cargo.

Since then, Sabine Pass expanded from one to five operating liquefaction Trains, the Cove Point LNG export facility began operations in Maryland and the Corpus Christi Train 1 shipped its first cargo in December 2018.

The EIA estimates that once the remaining three facilities under construction, Elba Island in Georgia, Cameron in Louisiana, and Freeport in Texas come on stream, along with the remaining two Trains at Corpus Christi, US nominal baseload liquefaction capacity will stand at 9.6 Bcf/d, or 72.3 million tonnes per annum, and peak capacity at 10.7 Bcf/d (80.9 MTPA).