I would have missed this. Huge "thank you" to the reader who sent this to me.
Sunday, January 17, 2021
Graphic Of The Week -- January 17, 2021
Sempra Energy Subsidiary Looks To Acquire Full Control Of Baja Wind Farm -- January 17, 2021
Sempra Energy’s Mexican subsidiary IEnova is looking at acquiring full control of the Energía Sierra Juárez wind farm in Baja California state as part of a consolidation of the firm’s assets.
Under the deal, IEnova would buy 50% of the farm from partner Saavi Energía. IEnova is in charge of management and construction of the 155MW plant.
The Energía Sierra Juárez required US$320mn and started operations in 2015. IEnova is building a second stage of the project, Energía Sierra Juárez 2, which is expected to begin operating at the end of the year.
IEnova is set to undergo structural changes as Sempra Energy plans to merge the firm with subsidiary Sempra LNG. The operation would create a new company called Sempra Infrastructure Partners.
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Weber Grill
From a reader. North Dakota bison ribeye. On a simple Weber. Doing his part to cut down on methane emissions.
US LNG Export Terminals Operating New Capacity; Shift From Coal To Natural Gas? US Gains -- January 17, 2021
Natural gas EIA weekly update: January 16, 2019.
See also:
- US liquefaction capacity growing, even as utilization declines, May 27 2020;
- Second-wave US LNG prospects stagnate amid market uncertainty, April 17, 2002;
US: six export terminals:
- Sabine Pass -- Louisiana, Cheniere, 30 mtpa
- Cove Point -- Maryland, Dominion/Buffett, 2.5 mtpa
- Elba Island -- Georgia, 2.5 mtpa
- Cameron -- Louisian, Sempra/others, 4.5 mtpa;
- Corpus Christi -- Texas, Cheniere, 23.5 mtpa;
- Freeport -- Texas, 15mtpa; a fourth train will bring it up to 20 mtpa;
Conversion:
- Bcf to million tonnes LNG, multiply Bcf by 0.0208212107
- million tonnes LNG per year (MTPA) to Bcf/d, multiply MTPA by 0.131584156
- Bcf/d to MTPF, multiply Bcf/d by 7.59974192
Costa Azul: Sempra, Baha Mexico, phase 1: 3.25 mtpa
US LNG Exporters --
Near Capacity As Asian Prices Test New Heights -- Rigzone
Link.
Houston — US LNG export terminals were operating near capacity January 11, 2021, as the spot price for deliveries to Northeast Asia approached a staggering $30/MMBtu amid ongoing supply constraints and strong winter demand.
The benchmark S&P Global Platts JKM has soared to a record high from a record low in less than nine months.
The current trend suggests that Asia will remain the top destination for US LNG for months to come, following robust deliveries to the continent in 2020. Three of the top five destinations last year for US LNG, including No. 1 South Korea, are in Asia.
Despite the coronavirus pandemic's impact on demand last summer and widespread cancellations of US cargoes between April and November, total US LNG exports rose by 27% year over year in 2020, with 667 LNG cargoes delivered.
South Korea, the top buyer of US LNG last year, imported 86 US cargoes, a roughly 10% build over 2019. Japan retained its position as the second-largest buyer of US LNG, taking 71 cargoes in 2020, a 31% build from 2019.
Spain was No. 3, followed by the UK at No. 4. China, at No. 5, imported 44 US LNG cargoes in 2020, a 10-fold increase over 2019. While tariffs were still in place, China granted waivers to importers, allowing US deliveries to resume in April 2020 following a 13-month pause.
"Certainly serves as a reminder of how tight the market can get, after being lulled into semi-permanent pessimism amid consecutive warm winters over capacity and the pandemic," said Michael Webber, managing partner of investment research firm Webber Research & Advisory. "Between this reminder, that global LNG markets were closer to balance than many assumed, and the immediate supply curve sliding back amid consistent project slippage around the world, the outlook for LNG certainly looks more constructive."
Adding up the bars above, one gets about 1,465 Bcf. Dividing by 365 = 4 Bcf/day.
The EIA predicted US LNG to average 5.5 Bcf/d in 2020 and expects LNG exports to jump to 7.3 Bcf/d in 2021.
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US LNG Exports
From Forbes, one year ago, January 26, 2020: American LNG exports jump to third place worldwide. Data points:
- US LNG export boom began in February, 2016
- now, January, 2020:
- the US has six export facilities
- 15 trains in service
- 2019: domestic LNG exports averaged: 5 Bcf/d
- 2018: domestic LNG exports averaged 3 Bcf/d
- January, 2020: US LNG feedgas hit a record 9.5 Bcf/d
- equates to over 10% of total US gas production
- feedgas demand will reach 12 - 13 Bcf/d by end of 2020
- for comparison, US gas for electricity averaged 31 Bcf/d with industrial use at23 Bcf/d
- EIA expects US net natural gas exports to almost double by 2021
- US accounted for over half of all new global liquefaction capacity added in 2019
- passing Malaysia, the US is now the world's third largest LNG seller behind leader Australia and second place Qatar
- at the time of this article, "with still a 25% tariff on our gas, China has not bought US LNG since March, 2019
- 2020: remaining trains at Freeport, Cameron, and Elba Line were scheduled to come on line
- 2021: a third train at Corpus Christi should come on line
- but look at this: some ~ 23 projects with a capacity of 35 - 40 Bcf/d are looking to ride the second US wave of gas exports in another round of development
And then this:
The boom in U.S. LNG exports really is: a giant global lifesaver. After all, natural gas is the go-to fuel for rich and poor countries alike to lower greenhouse gas emissions and backup naturally intermittent wind and solar power. Rich Germany is a perfect example of this clear reality. The Germans have spent literally hundreds of billions of dollars incorporating wind, solar, and battery storage at all costs, yet Germany is now looking at building at least four LNG import terminals.The US is on a collision course with the natural gas triad of Russia, Iran, and Qatar -- the triad accounting for 60% of proven global gas reserves.
It will be interesting to see if President Biden elects to cede "control" to RIQ. Expect to see a full-court press in social media on how "bad" natural gas is for the environment. Paid for, of course, by RIQ.
Sunday, January 17, 2021
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In Other News
California: utilities are warming they may need to cut power to almost 280,000 homes and businesses to prevent wildfires, Bloomberg.
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US LNG Exporters --
Near Capacity As Asian Prices Test New Heights -- Rigzone
Link.
Houston — US LNG export terminals were operating near capacity January 11, 2021, as the spot price for deliveries to Northeast Asia approached a staggering $30/MMBtu amid ongoing supply constraints and strong winter demand.
The benchmark S&P Global Platts JKM has soared to a record high from a record low in less than nine months.
The current trend suggests that Asia will remain the top destination for US LNG for months to come, following robust deliveries to the continent in 2020. Three of the top five destinations last year for US LNG, including No. 1 South Korea, are in Asia.
Despite the coronavirus pandemic's impact on demand last summer and widespread cancellations of US cargoes between April and November, total US LNG exports rose by 27% year over year in 2020, with 667 LNG cargoes delivered.
South Korea, the top buyer of US LNG last year, imported 86 US cargoes, a roughly 10% build over 2019. Japan retained its position as the second-largest buyer of US LNG, taking 71 cargoes in 2020, a 31% build from 2019.
Spain was No. 3, followed by the UK at No. 4. China, at No. 5, imported 44 US LNG cargoes in 2020, a 10-fold increase over 2019. While tariffs were still in place, China granted waivers to importers, allowing US deliveries to resume in April 2020 following a 13-month pause.
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Exporting US Shale Boom
Has Changed Oil Forever -- Rigzone
The lede:
Bloomberg: Five years ago on New Year’s Eve, the Theo T left the Texas Gulf Coast with the first U.S. shale crude shipment overseas. The oil, gathered from nearby ConocoPhillips wells and sold to trading giant Vitol Group, set sail for Italy just two weeks after lawmakers lifted a long-standing ban on exports.
It was the start of a trade that would reshape global oil markets, shift geopolitical power and upend entire economies. The shale boom itself has turned the U.S. into the world's largest oil producer and has moved it ever closer to a long-cherished dream of ending dependence on Middle East oil. But the export boom created an entirely new market, sending crude pulled from the shale fields of Texas, New Mexico and North Dakota to more than 50 countries, with shipments often surpassing those of any OPEC nation aside from Saudi Arabia.
These past five years could very well go down as the best years that U.S. shale oil exporters will ever see. Covid-19 has obliterated global fuel demand and bankrupted more than 40 drillers across America. Exactly how much oil leaves U.S. shores in the coming years will largely depend on how quickly the world can recover from the pandemic and how aggressively politicians work to shift the world away from fossil fuels. But the global reach of U.S. shale has changed oil markets for good and remains a potent, diplomatic weapon for the U.S.