LNG

Indian liquefied natural gas imports surged for a third straight month by over 18 percent, helped by lower prices and higher domestic natural gas demand and amid more competition from rising local output from offshore the Bay of Bengal.

Indian imports of liquefied natural gas dropped for a ninth straight month, though the rate of decline slowed to 3.5 percent even as LNG prices increased while the fall in cargo deliveries was offset by another rise in domestic gas output.

Indian liquefied natural gas imports plunged more than 21 percent, even more than in the previous month, as the costs of LNG shipments soared, though volumes were offset by offshore domestic natural gas pipeline supplies on the East Coast that jumped more than 24 percent.

Texas State Governor Greg Abbott has told the United Nations to get lost after it singled out the state for over-using oil and natural gas, even as Texas has the largest wind-power system in America as well as being a centre of increasing clean liquefied natural gas exports to Asia.

Indian Prime Minister Narendra Modi opened the Kochi to Mangalore natural gas pipeline linking the LNG terminal in southwest India to the port in the central state of Karnataka and declaring in the Web ceremony “One Nation, One Gas Grid” as he stated that India would attain its goal of having a plentiful supply of clean natural gas .

The US Department of Energy has just published its latest liquefied natural gas export data illustrating the development of seasonal price differentials for the various plants, while Pakistan joined India in the top five of monthly recipients and the Indians overtook the UK in the overall totals.

US cargo prices declined in September to an average of $5.35 per million British thermal units from $5.55 per MMBtu in the previous month, according to the DoE November report.

The proportion of spot cargoes compared with the contracted and other tolling-based deliveries has declined in 2020.

The number of overall spot cargoes dropped in September to 8.4 percent from 8.6 percent in the previous month. The total volumes shipped since February 2016 came to 5,369.2 Bcf of which 449.6 Bcf were spot shipments.

The average year-to-date prices for each plant (from the export point) from highest to lowest in September 2020 were: Cove Point (Maryland) $6.33 per MMBtu, Cameron (Louisiana) $5.70 per MMBtu, Sabine Pass (Louisiana) $4.97 per MMBtu, Freeport (Texas) $4.80 per MMBtu,, Corpus Christi (Texas) $4.29 per MMBtu and Elba Island (Georgia) $4.22 per MMBtu (just four cargoes shipped by September since December 2019).

Since US LNG exports began more than four years ago in February 2016, the DoE said a total of 1,650 cargoes (5,367 billion cubic metres), had been shipped on LNG carriers and 526 in ISO containers through September 2020 to 38 different countries, including to four nations in the Caribbean who receive ISO containers.

The top five countries of destination represented 52.3 percent of total US LNG exports in September 2020 and Pakistan joined India in this group.

The top five destinations for cargoes in September were: South Korea (32.1 billion cubic feet – nine cargoes); Spain (15.2 Bcf – five cargoes); China (11.2 Bcf – three cargoes); India (10.5 Bcf – three cargoes) and Pakistan (9.9 Bcf – three cargoes).

A total of 45 cargoes were shipped in September compared with 36 in August and 50 shipments in September 2019.

The list of the Top 10 countries of destination overall since 2016 through September 2020 showed two Asian nations, South Korea and Japan leading, ahead of Mexico and Spain respectively.

The Top 10 recipients of US LNG by numbers of cargoes, are: 1) South Korea 252 cargoes. 2) Japan 162. 3) Mexico 153. 4) Spain 118. 5) China 90. 6) India 80. 7) UK 79. 8) Chile 79. 9) France 63 and 10) Brazil 55.

The Sabine Pass plant overtook the Cameron facility that briefly became the US volume leader in August with 11 cargoes before being closed by a hurricane at the end of that month.

With Cameron out of action, the September cargoes came from Sabine Pass (18) Corpus Christi (11), Freeport (10), Cove Point (5) and Elba Island (1).

The average year-to-date price of US LNG through September 2020 dropped to $5.11 per MMBtu versus August’s $5.36 per MMBtu.

Shipments from the Cove Point plant were the most expensive in September and cost an average of $6.90 per MMBtu ($6.17 per MMBtu in August).

Prices of shipments from the Sabine Pass export point in September averaged $5.32 per MMBtu ($4.89 per MMBtu in August).

Prices at Corpus Christi in September averaged $4.43 per MMBtu ($3.73 per MMBtu in August).

The Freeport facility posted average September prices of $5.58 per MMBtu ($5.86 per MMBtu in August).

The Elba Island plant shipped one cargo in September as well as one in August and the latest was just its fourth overall. The September prices was $3.70 per MMBtu.

The US also sends regular ISO containers by cargo ship to the Caribbean nations of Barbados, the Bahamas and Haiti.

In September, a total of 18 containers were delivered versus 19 in August. The recipients were Bahamas 10, Haiti four and Barbados four, while no ISO containers reached Jamaica in September.

The US Department of Energy has just published its latest liquefied natural gas export data illustrating the drop in prices at the different plants and with China returning as the second-largest destination and two European nations, the UK and France, dropping out of the top five.

US cargo prices fell in April 2020, according to the new DoE report. Four out of the five large US facilities operating had lower prices in April 2020 versus the previous month.

The Corpus Christi plant in Texas, belonging to Cheniere Energy, was the only exporter to have higher prices compared with the previous month.

The proportion of spot cargoes compared with the contracted and other tolling-based deliveries has declined in 2020.

The number of overall spot cargoes dropped in April to 9.5 percent from 9.8 percent in the previous month. The total volumes shipped since February 2016 came to 4,720.4 billion cubic feet of which 449.6 Bcf were spot shipments.

The average year-to-date prices for each plant (from the export point) from highest to lowest were: Cove Point (Maryland) $6.49 per million British thermal units, Cameron (Louisiana) $5.84 per MMBtu, Sabine Pass (Louisiana) $4.80 per MMBtu, Freeport (Texas) $4.60 per MMBtu, Corpus Christi (Texas) $4.17 per MMBtu and Elba Island (Georgia) $2.99 per MMBtu.

Since US LNG exports began more than four years ago in February 2016, the DoE said a total of 1,446 cargoes had been shipped on LNG carriers and 440 in ISO containers through April 2020 to 38 different countries, including to four nations in the Caribbean who receive ISO containers.

The top five countries of destination represented 47.7 percent of total US LNG exports in April 2020 and China returned to the top five group as the UK and France dropped out.

The top five destinations for cargoes in April were: South Korea (24.3 billion cubic feet - seven cargoes); China (21.1 Bcf - six cargoes), Spain (20.0 Bcf - six cargoes), Japan (18.4 Bcf - five cargoes) and India (18.9 Bcf - five cargoes ).

Each April cargo amounted to 3.39 Bcf of natural gas in volume and totaled 210.4 Bcf, 13.8 percent lower that the March shipments of 244.1 Bcf, though 67 percent higher than in April 2019.

A total of 62 cargos were shipped in April compared with 75 in March 2020 and 42 shipments in April 2019.

The Top 10 countries of destination overall since 2016 through April 2020, by numbers of cargoes, are 1) South Korea 221 cargoes, 2) Mexico 150, 3) Japan 140, 4) Spain 93, 5) UK 77, 6) China 75, 7) Chile 70, 8) India 66, 9) France 61 and 10) Brazil 54 (including split cargoes).

The Sabine Pass plant sent out 27 cargoes in April, Cameron (11) Corpus Christi (10), Freeport (9), Cove Point (5) and Elba Island (0).

The average year-to-date price of US LNG through April 2020 was $4.49 per MMBtu versus March’s $4.66 per MMBtu.

Prices of shipments from the Sabine Pass export point in April averaged $4.42 per MMBtu ($4.68 per MMBtu in March).

Shipments from the Cove Point plant in April cost an average of $5.93 per MMBtu ($6.21 per MMBtu in March).

Prices at Corpus Christi in April averaged $3.59 per MMBtu ($3.08 per MMBtu in March).

Cameron plant exports cost an average price of $4.93 per MMBtu in April ($4.98 per MMBtu in March).

The Freeport facility posted average April prices of $4.41 per MMBtu ($5.01 per MMBtu in March).

The Elba Island plant shipped no cargoes in April and just its second cargo in January 2020 at a price of $2.57 versus $3.77 per MMBtu for the December 2019 cargo.

The US also sends regular ISO containers by cargo ship to the Caribbean nations of Barbados, the Bahamas and Haiti.

In April a total of 15 containers were delivered versus 14 in March 2020. The recipients were Bahamas eight, Barbados four and three for Haiti and none in the month for Jamaica.

Tellurian Inc. has delayed as expected its scheduled start of construction of the proposed Driftwood LNG export plant on the west bank of the Calcasieu River, south of Lake Charles in Louisiana, until 2021 and will study the economics of its Permian Basin feed-gas pipeline.

President Donald Trump is starting a two-day visit to India for talks concentrating on trade issues including energy, with the US offering access to its growing liquefied natural gas resources being expanded along the Gulf Coast and elsewhere in the nation and India seeking civil nuclear cooperation.

Indian liquefied natural gas imports surged for a 10th month in the current fiscal year as more volumes were imported at a lower cost from countries such as Qatar, the US, Australia and West Africa.