Monday, June 26, 2017

Why I Love To Blog -- Reason #37 -- LNG Export Story Gets Bigger And Bigger -- June 26, 2017


June 29, 2017: from the US Department of Energy, a press release:
The U.S. Department of Energy announced today the approval of two long-term applications to export additional liquefied natural gas (LNG) from the Lake Charles LNG Liquefaction Project in Lake Charles, LA.
Additional exports in the amount of 0.33 billion cubic feet per day (Bcf/d) of natural gas are approved from Lake Charles’s proposed liquefaction facility.
The two non-additive authorizations for the Lake Charles LNG Liquefaction Project have been issued to Lake Charles Exports, LLC and Lake Charles LNG Export Company (the Lake Charles Companies) authorizing additional exports of domestically produced LNG from the Lake Charles LNG Liquefaction Project to any country in the world not prohibited by U. S. law or policy.
The Energy Department previously authorized the Lake Charles Companies to export LNG up to the equivalent of 2 Bcf/d of natural gas to any country in the world not prohibited by U.S. law or policy from the Lake Charles LNG Liquefaction Project.
Now, with further engineering of the planned project, additional design capacity has been realized and the Energy Department is authorizing an additional 0.33 Bcf/d of exports from the Lake Charles LNG Liquefaction Project.
According to the Lake Charles Companies, the construction of Lake Charles LNG Liquefaction Project will provide thousands of construction jobs and hundreds of permanent jobs as well.
Later, 10:30 p.m. Central Time: now it's South Korea! South Korea's KoGas in talks with Cheniere for more LNG supply. From Platts:
Korea Gas, the largest natural gas buyer in South Korea, is talking to Cheniere Energy about the possibility of acquiring additional capacity from the LNG exporter that would help it commercialize two liquefaction trains for which it has permits but has not yet made a final decision to build.
The comments during a small gathering at Cheniere's Sabine Pass terminal in Louisiana to mark the commencement of a 20-year sales and purchase agreement for KoGas to take LNG from the facility highlight the aggressive marketing the company is doing to reach new deals, just as it faces growing competition from other US developers along the Gulf, Atlantic and Pacific coasts.
With the SM Eagle tanker expected to arrive in South Korea on July 1 with the first shipment of LNG from Sabine Pass' train 3 under the SPA signed in 2012, executives from Cheniere and KoGas said they want to build on their commercial relationship.
Cheniere is seeking offtakers for train 6 at Sabine Pass and train 3 at its Corpus Christi, Texas, export terminal before deciding whether to move forward with those units. 
Original Post 

Just this morning we posted two huge stories:
  • US LNG exports will go over 11 Bcf/day by 2020 (currently around 2 Bcf/day)
  • Senator Heidi Heitkamp, D-ND, wants to see more US LNG export terminals
Now, this story from Bloomberg:  Cheniere Gets Ready for ‘Next Round’ in Global Gas Export Market.
Sixteen months after sending the first cargo of U.S. shale gas overseas, Cheniere Energy Inc. is already preparing to be at the forefront of the next wave of export projects.
Cheniere is exploring new ways to finance additional terminals that chill gas to a liquid and ship it across the globe, including skipping the banks and going to other capital sources, Jack Fusco, chief executive officer.
The company has room to grow: It’s leased additional acres at the Sabine Pass terminal in Louisiana and has the option to purchase more land at Cheniere’s Corpus Christi site in Texas, where another export project is under construction.
Cargoes of liquefied natural gas from the U.S. to Australia are flooding the global market, adding to a supply glut and prompting investors to back new export facilities at the slowest pace since 1999. But a second round of projects is emerging on speculation that the slowdown will lead to a post-2020 construction boom that’ll benefit low-cost producers offering flexible contracts.

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