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Released May 06, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Market dynamics are doing little to disincentivize the liquefied natural gas (LNG) sector, with U.S.-based Cheniere Energy Incorporated (NYSE:LNG) (Houston, Texas) the latest to commit to expanding its export potential.
"Our focus for 2024 remains on excellence in execution across our operations, construction and project development initiatives," said Jack Fusco, the company's president and chief executive officer. "Our leading track record on these fronts is a significant competitive advantage as we pursue LNG capacity expansions at both Sabine Pass and Corpus Christi, which will enable our customers to realize the energy security, reliability and environmental benefits of our LNG."
LNG is a sought-after commodity due to its role as a bridge fuel and in energy security. Unlike piped gas, which can carry a geopolitical risk premium due to the transnational agreements necessary for hundred-mile projects, LNG is more fluid in terms of delivery.
Of the two export terminals in question, the Sabine Pass facility in Louisiana is typically the busiest. The federal government pointed to data showing that, of the 21 vessels laden with LNG that left U.S. export facilities during the seven-day period ending May 1, six of them left from Sabine Pass, compared with three from Corpus Christi, Texas.
All told, the United States shipped 80 billion cubic feet (Bcf) of LNG during the period ending May 1.
Cheniere aims to significantly expand its current export capacity through expansions at both Sabine Pass and Corpus Christi. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a report on the Sabine Pass LNG Train 7 and 8 additions and click here for a list of Corpus Christi project reports.
The prognosis on the two export terminals comes as the market in general is taking something of a beating due to lower natural gas prices. The federal government cited data showing the price for LNG cargoes in East Asia dropped 21 cents over last week, while the Dutch Transfer Facility, a market benchmark in Europe, dropped 30 cents on the week. Front-month futures for LNG were down 10%, while European prices were down 26% from the same period last year.
That decline helps explain some of Cheniere's financial performance during the first quarter. Net income of $502 million was 91% below the same period last year.
Tellurian Incorporated (Houston, Texas), a rival LNG producer, performed no better, but maintained it was committed to the development of its proposed Driftwood LNG facility.
"Over the past few months, our senior team has sharpened its focus on stability, financial discipline and execution, and we are laser-focused on bringing Driftwood to final investment decision," Martin Houston, the executive chairman at Tellurian, said last week. The company already has the permits necessary for the start of construction at the $15.5 billion facility planned for Lake Charles, Louisiana. Phase 1 would able to export as much as 1.5 Bcf of LNG per day. Subscribers can learn more from a detailed project report. For related information, see May 3, 2024, article - Tellurian Insists Driftwood LNG Facility Will Move Forward.
A recent report from Rystad Energy, a Norwegian consultant group, suggested natural gas prices may be supported later by LNG developments given the increased need for feed gas to support export operations. Pointing to the Freeport (Texas) LNG export terminal, which has been plagued for operation issues for at least a year, Rystad said recovery could be imminent. "The return of Freeport LNG to capacity is likely to have supported Henry Hub prices as demand for feed gas will be expected to increase," Lu Ming Pang, a senior LNG analyst at Rystad, wrote last week. For related information, see April 25, 2024, article - Signs of Life at Freeport LNG Export Terminal.
Subscribers can click here for all project reports mentioned in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
"Our focus for 2024 remains on excellence in execution across our operations, construction and project development initiatives," said Jack Fusco, the company's president and chief executive officer. "Our leading track record on these fronts is a significant competitive advantage as we pursue LNG capacity expansions at both Sabine Pass and Corpus Christi, which will enable our customers to realize the energy security, reliability and environmental benefits of our LNG."
LNG is a sought-after commodity due to its role as a bridge fuel and in energy security. Unlike piped gas, which can carry a geopolitical risk premium due to the transnational agreements necessary for hundred-mile projects, LNG is more fluid in terms of delivery.
Of the two export terminals in question, the Sabine Pass facility in Louisiana is typically the busiest. The federal government pointed to data showing that, of the 21 vessels laden with LNG that left U.S. export facilities during the seven-day period ending May 1, six of them left from Sabine Pass, compared with three from Corpus Christi, Texas.
All told, the United States shipped 80 billion cubic feet (Bcf) of LNG during the period ending May 1.
Cheniere aims to significantly expand its current export capacity through expansions at both Sabine Pass and Corpus Christi. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a report on the Sabine Pass LNG Train 7 and 8 additions and click here for a list of Corpus Christi project reports.
The prognosis on the two export terminals comes as the market in general is taking something of a beating due to lower natural gas prices. The federal government cited data showing the price for LNG cargoes in East Asia dropped 21 cents over last week, while the Dutch Transfer Facility, a market benchmark in Europe, dropped 30 cents on the week. Front-month futures for LNG were down 10%, while European prices were down 26% from the same period last year.
That decline helps explain some of Cheniere's financial performance during the first quarter. Net income of $502 million was 91% below the same period last year.
Tellurian Incorporated (Houston, Texas), a rival LNG producer, performed no better, but maintained it was committed to the development of its proposed Driftwood LNG facility.
"Over the past few months, our senior team has sharpened its focus on stability, financial discipline and execution, and we are laser-focused on bringing Driftwood to final investment decision," Martin Houston, the executive chairman at Tellurian, said last week. The company already has the permits necessary for the start of construction at the $15.5 billion facility planned for Lake Charles, Louisiana. Phase 1 would able to export as much as 1.5 Bcf of LNG per day. Subscribers can learn more from a detailed project report. For related information, see May 3, 2024, article - Tellurian Insists Driftwood LNG Facility Will Move Forward.
A recent report from Rystad Energy, a Norwegian consultant group, suggested natural gas prices may be supported later by LNG developments given the increased need for feed gas to support export operations. Pointing to the Freeport (Texas) LNG export terminal, which has been plagued for operation issues for at least a year, Rystad said recovery could be imminent. "The return of Freeport LNG to capacity is likely to have supported Henry Hub prices as demand for feed gas will be expected to increase," Lu Ming Pang, a senior LNG analyst at Rystad, wrote last week. For related information, see April 25, 2024, article - Signs of Life at Freeport LNG Export Terminal.
Subscribers can click here for all project reports mentioned in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
