Daily US LNG production hits record high of 5.28 Bcf in Christmas week

spglobal.com  Natural Gas  27 Dec 2018 | 17:05 UTC 

Daily US feedgas to LNG plants surpasses 5 Bcf for first time

Feedgas nominations for Thursday remain elevated at 5.12 Bcf

London — The rate of daily LNG production in the US hit an all-time high of 5.28 Bcf this week, according to data from S&P Global Platts Bentek Thursday.

Feedgas to the three currently operational LNG projects in the US topped 5.00 Bcf for the first time on December 22, and subsequently climbed to 5.28 Bcf on the day before Christmas.

Preliminary feedgas nominations for December 27 remained elevated at 5.12 Bcf.

In comparison, the average daily gas uptake for November was 4.25 Bcf.

The daily milestone comes as Cheniere ramps up the first train from its Corpus Christi LNG plant, which has a nameplate capacity of 4.5 million mt/year, and exported its first cargo earlier this month and a second cargo a day ago.

The nameplate capacity at Cheniere's Sabine Pass LNG plant now stands at 12.75 million mt/year, with 3.75 million mt of that coming from Train 5, which started up earlier this year.

Meanwhile, Dominion's 5.25 million mt/year Cove Point LNG has been producing consistently since its start up in the first half of the year.

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Wow

Dang... so when will additional wells be spud?  We had a rash of inquiries about possible new leases and then nada.

Without an idea of location, it's impossible to answer.  In general, there is so much natural gas available that there may be no need to drill wells in your area.

Bill, I counted the wells waiting on completion in East Texas last week. There are 85 currently from Harrison Co. down to Angelina Co. The bulk of them are in Panola & San Augustine. That's just Haynesville wells. There are also a number of CV wells in the northern counties but I don't have a handle on how many.

The majority of inquiries and multiple open permits to drill in San Augustine through EXCO...  and a few other O&G companies, like BP... just waiting for to poke the straw in the ground. Figure any actions will take place sometime during the New Year.

I think all of the open permits that Exco had have probably expired by now.

How are the new pipelines being built for the Permian Basin Doing? any information on capacity?

Based on an article in the Houston Chronicle from mid November, there are 17 pipelines being planned and/or being constructed that are designed to bring O&G products from the Permian Basin to the Tx Gulf Coast.

Seven are oil lines. Six are natural gas pipelines. Four are NGL pipelines.

I have not looked up the specifics for all these lines, but I do know the Kinder Morgan "Permian Highway" pipeline is being designed for up to 2 BCF per day.

Total anticipated costs of over $40 billion addressing almost 10,000 miles of pipelines..

Initial line will come on line in 2019 - others in 2020.

Attached is a JPEG of the map associated with this article (apologize for the quality of photo).

Pipeline.jpg

Thanks Rock!

Someone told my boss today that when the pipelines from the Permian get built, Permian won't get the current WTI and Henry Hub prices, Permian will simply crater those prices and screw us all.

Permian producers would probably feel satisfied with $2 mcf considering that their associated natural gas is a byproduct and has been considerably less due to take away constraints.  Whether the price of natural gas craters or not will depend heavily on demand growth.  We can estimate the increase in demand related to new LNG export facilities coming on line over the next 36 months but increases in petrochemical output, heating and electrical generation use will be required to keep the gas basins returning a reasonable profit.  No technical innovation can render shale gas profitable at $2/mcf.  $2.50 would tank the bulk of Haynesville development.

Skip,

The Permian is actually two different O&G product provinces. Whereas the Midland Basin is an oil dominant system with associated gas and NGL's (with the exception of the far southern part of the basin around Crockett County), the Delaware Basin a gas and NGL dominant system (With Apache's Alpine High area being the most gassy area).

Processing plant access and capacity will be a huge issue for many operators there.

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