Link to video:
BEIJING (Reuters) — China’s imports of liquefied natural gas (LNG) hit a monthly record of 5.03 million tonnes in December, customs data showed, as purchases spiked to cover a surge in demand under Beijing’s push to replace coal with gas for households and factories.
Golden Pass Products received a permit from the Federal Energy Regulatory Commission this week for its proposed $10 billion liquefied natural gas project from their Sabine Pass terminal.The company is authorized “to site, construct, and operate the proposed project located in Jefferson County, Texas,” as described in the application and “subject to the environmental conditions” in the order, which include wetlands mitigation, the authorization order said.The project would include three liquefaction trains, gas treatment facilities, a self-generation power plant and expansion of the company’s current pipeline system.Golden Pass said in a news release in July that the project “is expected to generate about 3,800 jobs” in the United States during 25 years of operations, with more than 200 permanent jobs at the Sabine Pass site, in addition to “thousands of direct and indirect jobs” during construction.Total capacity of the facility would be 15.6 million metric tons of LNG per year.
Cheniere Energy’s Sabine Pass terminal in Louisiana has exported LNG cargoes to Kuwait, the U.A.E. and Jordan this year. Read more on this here:
The facility was scheduled to receive ~20.8M cf of gas yesterday after receiving the same amount the previous day, but the volumes are negligible compared with the average intake of 1.18B cf/day during the first half of September, indicating that production from trains 1-2 at Sabine Pass had stopped.
Sabine Pass could continue to export during the shutdown, as the five LNG storage tanks at the terminal have combined capacity equivalent to ~17B cf of gas, while a typical LNG cargo is equivalent to 3B-3.5B cf of gas, so four or five exports are possible during the shutdown if the tanks are relatively full.
A new report from Drewry Shipping expects the shipping market for liquefied natural gas (LNG) to strengthen in the next few years and warned that the number of vessels may be inadequate to deal with expected demand.In Drewry’s latest LNG Forecast and cited by LNG World Shipping on Thursday, analysts estimate some 125 million metric tons of new production capacity is currently under construction. The LNG market will likely grow and, thus, more vessels will need to be built to transport more supply around the world.“As a majority of the supply from plants under construction has been contracted on long-term agreements, it is likely that LNG will be traded, so requiring more vessels,” observed Shresth Sharma, lead LNG shipping analyst for Drewry.
Kinder Morgan Inc. (NYSE: KMI) reported Thursday morning that two company subsidiaries have received authorization from the Federal Energy Regulatory Commission (FERC) to proceed with the company’s Elba Liquefaction Project on Elba Island, near Savannah, Ga. The company also received approval to proceed with a modification project to expand the Elba Express Pipeline.The $2 billion Elba Liquefaction Project expects to have the first of 10 liquefaction units up and running by the second quarter of 2018, with the rest entering service by the end of the year.
Increased flow, transportation and electricity projects continue to make a more robust North American natural gas market place. Less imports from Canada and more exports to Mexico mean that the U.S. will become a net exporter of natural gas this year or next.U.S. piped gas to Mexico has more than tripled since 2010 to about 3 Bcf/day. By 2019, 15 new pipelines will more than double capacity to Mexico to around 15 Bcf/day. This is far more than anticipated imports, but extra pipeline access that would help Mexico meet peak demand.This is important because there’s basically no storage available in Mexico, lacking mature fields, aquifers, and saline domes to store natural gas. Mexico has liquefied gas storage of about 3 days, far lower than the average storage capacity for OECD countries of nearly 85 days. Since 2010, Mexico’s gas consumption is up 22%, but its production is down 11%.