The U.S. Energy Information
Administration (EIA) natural gas weekly update released January 18th, 2018 noted
LNG vessels (LNG-carrying capacity 17.2 Bcf combined) departed the Sabine Pass
liquefaction facility last week (Thursday to Wednesday). One tanker (LNG-carrying capacity 3.8 Bcf)
was loading at the terminal on Wednesday.
The update also pointed out total U.S. consumption of natural gas was unchanged from the previous report week, averaging 102.3 Bcf/d. Natural gas consumed for power generation climbed by 6% week over week. Industrial sector consumption increased by 1% week over week. In the residential and commercial sectors, consumption declined by 4%. Natural gas exports to Mexico increased 3%.
Henry Hub natural gas futures reached a record-high daily trading volume on January 12 of 1,022,858 contracts, surpassing the 1 million milestone for the first time.
Today the U.S. Department of Energy released the most recent data on vessel-borne LNG exports of domestically-produced LNG. The data included export volume for November 2017.
79.99 Bcf of natural gas was exported from the Sabine Pass LNG Terminal in November 2017 in the form of LNG.
LNG was exported to the nine nations listed below from theSabine Pass LNG Terminal. Number in parenthesis is the number of cargoes. Total gas export volume per nation shown in Bcf.
South Korea (6) 21.14 Bcf
China (6) 20.87 Bcf
Mexico (3) 10.75 Bcf
Turkey (2) 7.08 Bcf
India (2) 7.06 Bcf
Portugal (1) 3.70 Bcf
Spain (1) 3.62 Bcf
Taiwan (1) 2.93 Bcf
Dominican Republic (1) 2.83 Bcf
Cheniere Marketing has entered into a LNG sale and purchase agreement with Trafigura . Trafigura has agreed to purchase approximately 1 million tonnes per annum of LNG from Cheniere Marketing on a free on board basis for a term of 15 years beginning in 2019. The purchase price for the LNG will be indexed to the monthly Henry Hub price, plus a fee.
"We are pleased to announce this long-term SPA with Trafigura, an important player in the global LNG market. We expect this SPA to help support Cheniere's expansion plans, and we look forward to a successful long-term relationship with Trafigura as a customer," said Jack Fusco, President and CEO. "With a flexible solution tailored to the needs of our customer, this agreement demonstrates Cheniere's capabilities as a leading global LNG supplier."
Yesterday the U.S. Energy Information Administration (EIA) released the Short-Term Energy Outlook (STEO). This edition of the Short-Term Energy Outlook is the first to include forecasts for 2019.
EIA projected U.S. LNG gross exports will average 3.0 Bcf/d
in 2018, up from 1.9 Bcf/d in 2017. In 2018, U.S. liquefaction capacity will
continue to expand. EIA expects the Cove Point terminal in Maryland to ramp up
to full capacity in 2018. At the Elba Island facility in Georgia, 6 of the 10
small modular trains, each with a capacity of 0.03 Bcf/d, are expected to enter
service this year. The first liquefaction train (capacity 0.7 Bcf/d) at
Freeport LNG in Texas is also expected to come online by the end of 2018.
EIA projects gross LNG exports to average 4.8 Bcf/d in 2019, when the four remaining modular trains at Elba Island come online and the remaining two trains at Freeport LNG enter service. Two trains in Corpus Christi, Texas, and three trains at Cameron LNG in Louisiana are also expected to enter service in 2019. EIA forecasts exports will ramp up in the second half of 2019 to an average of 5.5 Bcf/d, up from 4.1 Bcf/d in the first half of 2019.
The STEO noted Henry Hub spot prices averaged $2.99 MMBtu in 2017, up 47 cents/MMBtu from a 17-year low in 2016. Henry Hub natural gas spot prices are forecast to average $2.88/MMBtu in 2018 and $2.92/MMBtu in 2019. Prices are expected to decline slightly from 2017 levels based on strong expected production growth, which EIA forecasts will meet growing domestic consumption and exports
EIA expects dry natural gas production to rise by 6.9 Bcf/d (9.3%) in 2018 and by 2.6 Bcf/d (3.2%) in 2019. If achieved, the forecast 6.9 Bcf/d increase in 2018 would be the highest on record. Growth is expected to be concentrated in Appalachia’s Marcellus and Utica regions, along with the Permian Basin region. Much of the expected increase in natural gas production is the result of increasing pipeline takeaway capacity out of the Appalachia producing region to end-use markets. The greater pipeline connectivity contributes to higher wellhead natural gas prices for producers and is expected to encourage production growth.
The U.S. Energy Information Administration (EIA) natural gas weekly update released January 4th, 2018 noted four LNG vessels (LNG-carrying capacity 15.2 Bcf combined) departed the Sabine Pass liquefaction facility last week (Thursday to Wednesday) and one tanker (LNG-carrying capacity 3.8 Bcf) was loading at the terminal on Wednesday.
According to Bloomberg, Sabine Pass finished 2017 with its highest monthly export total. In December, 25 tankers left the terminal, exceeding the previous monthly highs of 22 tankers in October and November. The Cove Point LNG export facility in Lusby, Maryland is continuing commissioning work with commercial operations anticipated early this year.
The EIA update also noted total U.S. consumption of natural gas rose by 26% compared with the previous report week, as cold temperatures affected much of the country. Total U.S. consumption reached an all-time high on January 1, 2018. Natural gas consumed for power generation climbed by 18% week over week. Industrial sector consumption increased by 8% week over week. In the residential and commercial sectors, consumption increased by 39%. Natural gas exports to Mexico decreased 5%.
On December 20th, 2017 Cheniere Energy submitted a monthly progress report to the U.S. Federal Energy Regulatory Commission for the Corpus Christi Liquefaction project. The report covers activities of the project that occurred during the month of November 2017.
The report noted engineering has progressed to 100.0%. Procurement has progressed to 93.9%. Subcontract and direct hire construction work are 56.1% and 55.8% complete, respectively. The total Project has progressed to 77.4% complete against the plan of 80.8%.
Construction continued progressing permanent plant concrete, structural steel, aboveground pipe, electrical, instruments, and equipment installation. Major highlights for November include: setting Train 1 gas turbine stacks, waste heat recovery units and filter houses; energization of BOG/utility substation; starting above ground pipe insulation; erection of process flare derrick structure; and commencing Train 2 cryo rack air coolers installation. Construction has turned 41 systems over to startup through the end of November.
Images below from the FERC Corpus Christi Liquefaction monthly construction report for November 2017.
The U.S. Energy Information Administration (EIA) natural gas weekly update released December 14th, 2017 noted four LNG vessels (LNG-carrying capacity of 14.8 Bcf combined) departed the Sabine Pass liquefaction facility last week (Thursday to Wednesday) and two tankers (LNG-carrying capacity of 7.2 Bcf combined) were loading at the terminal on Wednesday.
U.S. Department of Energy released final tracking figures for October 2017 U.S. LNG vessel borne exports yesterday. The most cargoes were sent to China in October 2017 from the Sabine Pass liquefaction facility. 80.1 Bcf was exported in total from the Sabine Pass facility in October 2017. Country and number of cargoes (parenthesis) listed below shipped from the Sabine Pass facility in October 2017.
South Korea (6)
ExxonMobil announced today the completion of a transaction to acquire a 25 percent indirect interest in Mozambique’s Area 4 block from Eni and assume responsibility for midstream operations.
ExxonMobil will lead the construction and operation of all
future natural gas liquefaction and related facilities, while Eni will continue
to lead the Coral floating LNG project and all upstream operations.
“ExxonMobil brings our LNG leadership and experience to support development of Mozambique’s high-quality natural gas resources,” said Darren W. Woods, chairman and chief executive officer.
The deepwater Area 4 block contains an estimated 85 trillion cubic feet of natural gas in place. ExxonMobil now owns a 35.7 percent interest in Eni East Africa S.p.A. (to be renamed Mozambique Rovuma Venture S.p.A.), which holds a 70 percent interest in Area 4, and is co-owned with Eni (35.7 percent) and CNPC (28.6 percent). The remaining interests in Area 4 are held by Empresa Nacional de Hidrocarbonetos E.P. (10 percent), Kogas (10 percent) and Galp Energia (10 percent).
The U.S. Energy Information Administration (EIA) natural gas weekly update released December 7th, 2017 noted four LNG vessels (LNG-carrying capacity of 14.0 Bcf combined) departed the Sabine Pass liquefaction facility over the report week (Wednesday, November 29 to Wednesday, December 6, 2017). Two tankers (LNG-carrying capacity of 6.9 Bcf combined) were loading at the terminal on Wednesday.
Total U.S. consumption of natural gas rose by 8% compared with the previous report week. Natural gas consumed for power generation climbed by 12% week over week. Industrial sector consumption increased by 1% week over week. In the residential and commercial sectors, consumption increased by 10%. Natural gas exports to Mexico decreased 7%.
Eni, together with its Area 4 Partners, announced today that the Coral South FLNG multi-sourced project financing achieved financial close for a total amount of almost $4.7 Billion (USD).
Coral South FLNG is the first project sanctioned by the Area 4 Partners for the development of gas resources discovered by Eni and its Partners in the Rovuma Basin offshore Mozambique. It targets the production and monetization of the gas contained in the southern part of the Coral gas reservoir, by means of a floating LNG plant with a capacity of 3.4 MTPA. A Sale and Purchase Agreement was signed in 2016 for the sale of 100% of the LNG production to BP.
Eni is the Operator of Area 4, holding a 50 percent indirect interest through its participation in Eni East Africa (EEA). In March 2017, Eni and ExxonMobil signed a Sale and Purchase Agreement to enable ExxonMobil to acquire a 25 percent interest in Area 4, through EEA. The remaining interests in Area 4 are held by CNODC (20%), Empresa Nacional de Hidrocarbonetos E.P. (ENH, 10%), Kogas (10%) and Galp Energia (10%).