LNG: New Fortress, Corpus, Kinder Morgan

Latest News

USLNG Export Bonanza Reshapes Energy Map in Asia (Reuters)
Aaron Sheldrick (April 02): US LNG exports to China, Japan, and South Korea, the biggest, have surged to record highs in recent months as the region recovers from the COVID-19 pandemic, Eikon trade data shows… Such is the speed of growth of USLNG imports into Japan, the United States is running neck and neck this year with Qatar—a long-term key exporter to Japanese utilities—as a major supplier to the world’s third-largest economy, official data showed this week. Link to Content

USLNG: No FIDs Predicted in 2021, Says Wood Mackenzie (NGI)
Caroline Evans (March 31): WoodMac said that USLNG FIDs in 2021 were unlikely as sponsors struggle to secure long-term contracts. Alex Munton: “Generally, we’ve seen a slowdown in the pace of sales contract activity. Pre-FID projects will continue to struggle to secure buyers, given the huge wave of LNG currently under construction globally. For that reason, we see a limited window to project FIDs for the next couple of years.” Munton acknowledged there was some risk to projections as the spike in spot prices during Jan. could cause customers to reengage in discussions for long-term offtake contracts. The global appetite for the Henry Hub benchmark could also increase, as it is seen as relatively stable compared to other indices. Link to Content

USLNG: Gas Deliveries to US LNG Terminals to Flow Full Tilt Into Summer (S&P Global Platts)
Corey Paul (March 30): Natural gas deliveries to the six major USLNG export terminals have been flowing at full bore since mid-March as global gas prices continued to support shipments of the fuel. Market observers expected U.S. terminals to keep operating at close to their full capacity in the months ahead when seasonal demand is typically lower. Total flows were about 11.4 Bcf/d on March 28, continuing to hover around record levels.

U.S. Gas Industry Increasingly Relies on USLNG Exports (Reuters Opinion)
John Kemp (March 29): U.S. gas producers have become increasingly reliant on USLNG exports to Europe and Asia to absorb growing output and prevent domestic prices from plunging because of oversupply… LNG exports surged to almost 67 bcm in 2020, up from less than 1 bcm in 2015, and were rapidly catching pipeline exports to Canada and Mexico. Outbound LNG shipments accounted for more than 7% of all domestic gas production last year, and by the end of the year the proportion had reached 10% for the first time.

The Biden administration may also perceive advantages from LNG export promotion, but growing gas exports will have to be reconciled with its commitment to reducing global emissions. It is likely to conclude U.S exports are a more attractive alternative to LNG exports from rival suppliers or coal combustion, at least in the short to medium term. Link to Content

Corpus Christi: Cheniere Announces Substantial Completion of Train 3 (Release)
March 29: Substantial Completion of Train 3 project was achieved on March 26. Commissioning is complete and Bechtel, Cheniere’s EPC partner, has relinquished care, custody, and control of Train 3.

New Fortress: Deal to Supply LNG for Two Power Plants in Mexico (NGI)
Andrew Baker (March 30): New Fortress Energy has signed an agreement to supply natural gas to two power plants owned by Mexican state power utility Comisión Federal de Electricidad in Mexico’s Baja California Sur state… NFE will supply about 250,000-500,000 gallons (20,000-40,000 MMBtu) per day of LNG imported via NFE’s terminal under construction in the port of Pichilingue. The terminal is expected to be complete and begin supplying gas to CFE in May. Link to Content

Kinder Morgan: Seeks to Expand CO2 Business in Clean Energy Push (Bloomberg)
Sergio Chapa (March 29): Fueled by a push to eliminate GHG emissions, carbon capture and renewable energy projects are sprouting up alongside Kinder Morgan’s massive network of pipelines and the midstream operator sees the potential for new business opportunities. Through a unit launched earlier this month, Kinder Morgan will invest in technology and partner with companies on carbon capture, biofuels, and hydrogen projects.

Jesse Arenivas, Kinder Morgan Energy Transition Ventures: “What we’re trying to do is augment and supplement that business and grow that side of the business by capturing, transporting, and providing carbon sequestration services. We see our CO2 business as a growth vehicle, not a dying business.” Link to Content