Friday, March 3, 2017

Update On US LNG Liquefaction Capacity -- Staggering! The Market And Energy Page, T+42 -- March 3, 2017

Four counties in North Dakota produce about 10% of the amount of crude oil that the entire country of Russia produces. One million bbsl for the former; 11 million bbls for the latter.  And, oh, by the way, it's only a small area in those four counties -- we're talking maybe 75 miles x 75 miles. It is staggering. And I'm probably exaggerating. But not by much.

LNG: staggering. For the week ending March 1, 2017, a dynamic link --  US liquefaction capacity keeps growing. This is really quite staggering. See below.

Dow Futures: now turn green; WTI up slightly; still well below $53.

Who wudda thought? Canada's GDP doubled America's. No wonder Trump thinks we can do better.
Canada’s indefatigable households and a sharp drop in imports kept the country’s economy growing at a 2.6 percent annualized pace in the final quarter of 2016, helping offset what looks to be a deepening slump in business investment.
Statistics Canada also raised its third-quarter growth estimate to 3.8 percent, from 3.5 percent, showing the nation’s economy had its best half-year performance since the final six months of 2013, or before the collapse of oil prices.
The confirmation that Canada is emerging from the commodity slump should come as a relief to policy makers who struggled to cope with a near-stagnant economy, as the nation dealt with the impact of an oil price shock and faltering export sector.
Boeing cutting 1,800 jobs in Seattle area? Heard it on Fox Business News.

Liquefaction In The News


March 5, 2017: Kinder Morgan sells 49% stake in Elba Island LNG, Savannah, Georgia.
  • looks like an old-fashioned real-estate "flip"
  • buyer: EIG Global Energy Partners; US offices in Houston and Washington, DC
  • $385 million in cash up front 
  • ELC will own 10 liquefaction units and other ancillary equipment
  • KMI's Southern LNG Company LLC owns the Elba Island terminal
  • project to cost about $1.3 billion; construction to begin November 1, 2017
  • KMI has already owned 51% of the project when it acquired the remaining 49% from Shell, summer, 2015
Original Post 

From the link above:
Elba Island LNG, Georgia, USA, one of the six U.S. liquefied natural gas (LNG) export facilities currently under construction ... to begin installation of liquefaction units at its project site by March 10.
The project will be using a new technology, developed by Shell, called Movable Modular Liquefaction System. It will consist of ten small-scale liquefaction units (called trains), constructed in two phases. Each train has a capacity to liquefy approximately 33 million cubic feet per day (MMcf/d), for a total project capacity of 0.35 billion cubic feet per day (Bcf/d).
Elba Island LNG is the latest of six U.S. LNG export facilities to start construction in the last four years in the lower 48 states.
The Elba Island export facility is being developed at the site of the existing regasification facility and will therefore benefit from extensive existing infrastructure, including pipelines, storage tanks, and two berths for the docking of vessels
Elba Island LNG is being developed by Kinder Morgan, and will operate as a tolling facility, with the full off-take volume contracted by Royal Dutch Shell under a 20-year contract. As a tolling customer, Shell will be responsible for procuring natural gas feedstock for the facility, and will pay a flat tolling liquefaction fee to the facility owners Kinder Morgan and EIG Global Energy Partners (which own 51% and 49% of the project, respectively).
The other five liquefaction projects in the United States are in various construction stages.
Sabine Pass LNG, which began operations in February of last year, currently has three fully operational trains and two more trains under construction. The fourth train at Sabine Pass is expected to be in service by summer 2017 and the fifth train by the third quarter of 2019. The sixth train at Sabine Pass has been fully authorized, but is not yet under construction.
Cove Point LNG, like Elba Island, is also a brownfield facility developed at the site of the existing regasification terminal in Maryland. Cove Point is expected to come online by the end of this year.
Three other liquefaction projects—Freeport, Cameron, and Corpus Christi—have multiple trains under construction.
Liquefaction capacity from all projects currently under construction is projected to expand by 1.4 Bcf/d in 2017, 1.9 Bcf/d in 2018, and 3.8 Bcf/d in 2019.
Once all of these liquefaction projects become operational, the United States is projected to have the third largest liquefaction capacity in the world at 9.4 Bcf/d, after Australia and Qatar.

No comments:

Post a Comment