Exxon sees 3% of Q1 production shut for up to five years
ExxonMobil has acknowledged damage to two LNG trains in Qatar was responsible for half of its 6% worldwide production outage, indicating the 3% Ras Laffan shortfall could linger on for up to five years, considering the repair timeline.
Higher US supply offsets cold weather rally, Golden Pass start-up
Elevated US gas production is offsetting the bullish price impact of unseasonably cold weather through early March, while the ramp-up of Golden Pass LNG lifted feedgas intake to about 0.25 billion cubic feet per day (bcf/d).
Freeport LNG boosts feedgas intake after shutdown; LSEG data
Feedgas intake at Freeport LNG is ramping up following a brief shutdown last week. A compressor system malfunction had reduced feedgas to 1.5 billion cubic feet per day (bcfd), well below the terminal’s full capacity of around 2 bcfd across all trains.
Fed’s lending rate cut has little impact on oil and LNG prices
The US Federal Reserve’s interest rate cut has had little effect on oil and LNG prices as uncertainty about the macro-economic outlook stays high. “For commodity markets, the message is clear: monetary policy is no longer a dominant driver of price direction,” Rystad analysts commented.
Brent’s flirt with contango could make OPEC+ cut supply
If the Brent crude oil market begins to “flirt with contango,” OPEC+ will likely cut production, Rystad reckons. The primary goal of oil and gas producers remains maintaining a backwardated market structure, with crude prices impacting oil-indexed gas and LNG contracts.
Presidential election unlikely to slow growth of US shale industry
Bickering between US Vice President Kamila Harris and former President Donald Trump in the run-up to the US election is not hampering the steady growth of the shale gas industry and LNG majors. Focus on profitability and shareholder returns – rather than production growth – means the industry is unlikely to be influenced by promises of support or potential regulations from either candidate.
