PERIODIC UPDATES: U.S. LNG EXPORT AND GLOBAL LNG MARKET - SEMPRA CAMERON LNG UPDATE

NEW YORK  Markets | Mon Nov 9, 2015 5:07pm EST  reuters.com

Cheniere Energy's landmark Sabine Pass liquefied natural gas export plant in Louisiana will receive its first tanker for loading on Jan. 12, according to ship tracking data and a source with knowledge of the plant's operations.

The Energy Atlantic LNG tanker, which was last seen on Thomson Reuters ship tracking data on Monday steaming west across the Indian Ocean, is the first in a string of test cargoes that will be loaded before commercial operations begin later in the year.

The expected arrival of the tanker to Sabine Pass was confirmed by a source and by IHS Waterborne consultants that track LNG shipments globally.

It marks a milestone for the long-awaited project, the first of its kind to be built in the United States in nearly 50 years, and for the U.S. gas market that has been swamped with new supply in recent years due to a domestic drilling boom.

It is unclear when the Energy Atlantic will actually leave Sabine or where it will go.

One source said the test phase could take four to six months before the first shipments under a long term contract between Cheniere and LNG shipper BG Group begin.

The first export shipment represents a turnaround for Cheniere, which in 2008 built an import terminal at the same site in Sabine Pass which was quickly rendered obsolete by the rise in U.S. production.

Now, however, other headwinds exist for exports, including a global glut of supply that has pushed prices way below year-ago levels.

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Permalink Reply by Bradley McWilliams on February 24, 2016 at 4:33

Skip, have you, (or anyone for that matter), got an idea of the volume in MCF of gas a tanker moves?

Permalink Reply by Skip Peel - Mineral Consultant on February 24, 2016 at 4:35

From what I have read it appears the average LNG tanker has a capacity of 3 Bcf.

Permalink Reply by JHH on February 24, 2016 at 4:19

I just saw a "live" report on CNBC from Sabine Pass where they say Cheniere finished loading a tanker and reported it is ready to set sail for Brazil.

Permalink Reply by JHH on February 24, 2016 at 4:21

Said tanker is loading and will set sail later today.

Permalink Reply by JHH on February 24, 2016 at 9:20

http://fuelfix.com/blog/2016/02/24/chenieres-sabine-pass-to-ship-fi...

HOUSTON — The first cargo of U.S. liquefied natural exported from the lower 48 United States will leave Cheniere Energy’s Sabine Pass plant later Wednesday, a company executive announced.

The shipment signals that the unconventional gas revolution that upended U.S. natural gas markets has now arrived on the global markets. The fuel will be carried to Brazil on the LNG tanker Asia Vision LNG and is expected to be received by Petroleo Brasileiro SA, according to a report by Bloomberg.

Meg Gentle, Cheniere’s president of marketing, made the announcement in comments at the IHS Energy CERAWeek conference in Houston.

“They’re still loading it at Sabine Pass and it’s expected to depart the facility later today as it makes its way to Brazil,” she said.

Gentle called the shipment as among the first steps toward creating a liquid and transparent market for LNG across the globe.

Permalink Reply by Skip Peel - Mineral Consultant on February 24, 2016 at 9:33

I had hoped that this would be an auspicious day to mark a turn around in the demand for and price of natural gas.  Now it's hard to say when that day may come but it's likely years away.  We are now entering the era of global LNG glut.

Permalink Reply by Skip Peel - Mineral Consultant on February 25, 2016 at 4:10

UPDATE 1-U.S. exports first shale gas as LNG tanker sails from Sabine Pass terminal

By Jacob Gronholt-Pedersen  reuters.com  Business | Thu Feb 25, 2016 3:34am GMT

The United States has exported its first liquefied natural gas (LNG) cargo from the lower 48 states, after a tanker set sail from Cheniere Energy's Sabine Pass export terminal in Louisiana.

The Asia Vision LNG tanker left the dock at the Sabine Pass terminal at 0139 GMT (7.39 p.m. on Wednesday local time), shipping data on Reuters showed.

Expected to become an importer of LNG just a decade ago, the shale gas revolution in the United States unlocked cheap, abundant gas supplies, allowing the country to become an exporter instead.

The first U.S. exports come just days before production begins at the Chevron Corp-led Gorgon LNG project in Australia, the world's most expensive LNG terminal at $54 billion, and will add to a wave of supply at a time when demand is faltering in major consuming countries and prices plummeting in line with oil.

The first cargo of about 3 billion cubic feet (bcf) of gas will go to Petrobras in Brazil, Meg Gentle, executive vice-president of marketing at Cheniere said on the sidelines of the CERAWeek conference in Houston.

U.S. Henry Hub natural gas prices for January GT-HH-IDX fell to the lowest for the month since 1999 with near-record production of shale gas outpacing demand growth.

Spot LNG prices in Asia, where the bulk of LNG is consumed, were down about three-quarters from their peaks in 2014.

Cheniere Energy has six LNG vessels under charter, including the Asia Vision. The Energy Atlantic, another tanker chartered by Cheniere, has been waiting in the Gulf of Mexico since January and is also expected to transport LNG from Sabine Pass. (Reporting By Jacob Gronholt-Pedersen; Editing by Michael Perry and Christian Schmollinger)

 

Permalink Reply by Skip Peel - Mineral Consultant on February 26, 2016 at 3:46

Cheniere to export 8 to 10 additional LNG cargoes in coming months  Thu Feb 25, 2016 11:55pm GMT  reuters.com

HOUSTON Feb 25 (Reuters) - Cheniere Energy expects to export eight to 10 more cargoes of liquefied natural gas (LNG) in the next two months out of its newly commissioned Sabine Pass terminal on the Texas-Louisiana border, a company executive told Reuters on Thursday.

The cargoes will be offered on a spot basis and likely sail to Europe or Brazil, Katie Pipkin, senior vice president of business development and investor relations, said at the IHS CERAWeek conference.

Cheniere on Wednesday became the first U.S. company to export LNG, sending a cargo carrying 3.7 billion cubic feet (Bcf) of the liquefied shale gas to Brazil for state-run oil company Petrobras.

Cheniere's marketing group sold the cargo and has six additional vessels under charter.

The inaugural export comes as the company is re-focusing its business on LNG after exploring a possible expansion into crude condensate exports from a proposed terminal in Corpus Christi, Texas.

Earlier this month, Cheniere released two traders hired to head up a crude and condensate trading group, including Nelson Lee, who the company plucked from BHP Billiton, where he helped oversee the first-ever exports of U.S. condensate.

Now the company has halted engineering work and permitting that was underway for the Corpus Christi facility. Cheniere had purchased land there.

The tighter focus on LNG follows a management shakeup at the company, largely pushed by activist investor Carl Icahn, who has increased his investment in the company and controls two board seats.

"They (the board) came in and asked us to be more focused, with not such an aggressive growth plan at the moment. They really want us to focus on getting the (LNG) trains done so we generate cash flow," Pipkin said.

In December, Cheniere's board voted to remove former CEO Charif Souki.  Neal Shear is still acting as interim CEO. Cheniere's board has kicked off the process of finding a new CEO and hired executive search firm Spencer Stuart to assist. The processes is expected to be complete by May or June.

Going forward, Cheniere has contracted to sell 42 cargoes of LNG from its Sabine terminal to EDF Trading between 2016 and 2018, and roughly 12 cargoes per year to French multi-national Engie between 2018 and 2023.  Those term contracts will commence once the commissioning period on the facility ends in April or May.

(Reporting by Liz Hampton; Editing by Terry Wade and David Gregorio)

Permalink Reply by bret rothwell on February 26, 2016 at 9:39

Given that the measurable DAILY world LNG market moves 33,000 bcf nat gas and that US nat gas in storage as of Feb 12 2016 was 3,937BCF,  Cheniere's LNG export of 3 BCF is underwhelming....or numerically, measured in less than .000000001 % of the market place. In South Texas 3 BCF moves dailty south to Mexico to local market...does not ring the bell.

Permalink Reply by Skip Peel - Mineral Consultant on February 26, 2016 at 9:45

Absolutely.  The question going forward is, how many proposed trains are built and how much room in the global market there is for profitable U.S. export?  The competition will be fierce.

Permalink Reply by Skip Peel - Mineral Consultant on March 1, 2016 at 12:20

Cheniere to export 8 to 10 additional LNG cargoes in coming months

Thu Feb 25, 2016 11:55pm GMT  reuters.com

HOUSTON Feb 25 (Reuters) - Cheniere Energy expects to export eight to 10 more cargoes of liquefied natural gas (LNG) in the next two months out of its newly commissioned Sabine Pass terminal on the Texas-Louisiana border, a company executive told Reuters on Thursday.

The cargoes will be offered on a spot basis and likely sail to Europe or Brazil, Katie Pipkin, senior vice president of business development and investor relations, said at the IHS CERAWeek conference.

Cheniere on Wednesday became the first U.S. company to export LNG, sending a cargo carrying 3.7 billion cubic feet (Bcf) of the liquefied shale gas to Brazil for state-run oil company Petrobras.

Cheniere's marketing group sold the cargo and has six additional vessels under charter.

The inaugural export comes as the company is re-focusing its business on LNG after exploring a possible expansion into crude condensate exports from a proposed terminal in Corpus Christi, Texas.

Earlier this month, Cheniere released two traders hired to head up a crude and condensate trading group, including Nelson Lee, who the company plucked from BHP Billiton, where he helped oversee the first-ever exports of U.S. condensate.

Now the company has halted engineering work and permitting that was underway for the Corpus Christi facility. Cheniere had purchased land there.

The tighter focus on LNG follows a management shakeup at the company, largely pushed by activist investor Carl Icahn, who has increased his investment in the company and controls two board seats.

"They (the board) came in and asked us to be more focused, with not such an aggressive growth plan at the moment. They really want us to focus on getting the (LNG) trains done so we generate cash flow," Pipkin said.

In December, Cheniere's board voted to remove former CEO Charif Souki.

Neal Shear is still acting as interim CEO. Cheniere's board has kicked off the process of finding a new CEO and hired executive search firm Spencer Stuart to assist. The processes is expected to be complete by May or June.

Going forward, Cheniere has contracted to sell 42 cargoes of LNG from its Sabine terminal to EDF Trading between 2016 and 2018, and roughly 12 cargoes per year to French multi-national Engie between 2018 and 2023.

Those term contracts will commence once the commissioning period on the facility ends in April or May. (Reporting by Liz Hampton; Editing by Terry Wade and David Gregorio)

 

Permalink Reply by Bradley McWilliams on March 1, 2016 at 12:26

Well, 8-10 tankers, that can't hurt. I read somewhere that if they were to load 163 tankers of LNG that the oversupply of NG would be alleviated...

Don't read me wrong, I'm glad to see it, but it kind of falls under the "too little too late" heading.

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