News

U.S. set to double LNG shipments

E&E Energy Wire | 10/14/16

Cheniere Energy Inc. has received approval from regulators to double the volume of U.S.-produced liquefied natural gas exports from its Sabine Pass terminal in Louisiana.

Cheniere will start loading tankers with LNG from the terminal’s new plant, known as Train 2. The company shipped out its first cargo from the Lower 48 states in February, making it the nation’s first and only exporter of shale gas.

Analysts say the additional volume of U.S. LNG comes at a testing time for the global gas market, which has been reeling from oversupply and weakened demand.

“There will be big questions about where all of this gas is going to go and what it’s going to do to European gas prices and power prices, in Asia as well,” said Ted Michael, an LNG analyst with Genscape Inc.

The company plans to bring a third plant online next year and to commission a fourth.

Full story here.

America’s About to Double the Shale Gas It Sends Overseas

Bloomberg | Naureen Malik | 10/13/16

The U.S. is set to double the volume of shale natural gas it’s sending abroad.

Cheniere Energy Inc., which became the nation’s first and only exporter of shale gas in February, was cleared by U.S. regulators on Wednesday to start loading tankers with liquefied natural gas from a second plant at its landmark Sabine Pass terminal in Louisiana.

The additional volumes of U.S. LNG will come at a testing time for the global market, which is reeling from a worldwide glut that’s set to worsen through 2020 as demand from key Asian customers slows. Still, the first exports from the lower 48 states have helped whittle down a U.S. surplus of the power-plant fuel and put Cheniere on the road to posting its debut profit.

Full story here.

U.S. gas glut is disappearing

Reuters / John Kemp / 7/12/16

U.S. natural gas prices have risen by a third since hitting a two-decade low in the first quarter, amid signs supply and demand are rebalancing and excess stocks left over from an unusually warm winter are being worked down.

The volume of gas in working storage hit a record 4.01 trillion cubic feet in November 2015 and is still at 3.18 trillion cubic feet, according to the U.S. Energy Information Administration (tmsnrt.rs/29AF787).

Gas stocks are 513 billion cubic feet (19 percent) higher than in the same week in 2015. But the build has shrunk steadily from a record 1.014 trillion cubic feet (69 percent) in March (tmsnrt.rs/29tgsGw).

Full story is here.