US LNG exports drop on week

US exports of liquefied natural gas (LNG) produced from shale gas decreased week-on-week, according to the weekly report by the Energy Information Administration.

Three LNG vessels with a combined capacity of 11.5 billion cubic feet (Bcf) departed Cheniere’s Sabine Pass liquefaction facility in the week ending January 24, as compared to five LNG vessels with a capacity of 17.2 Bcf the week before.

Two LNG tankers with a capacity 7.3 Bcf were loading at the terminal on Wednesday, EIA said.

Natural gas pipeline deliveries to Sabine Pass averaged 2.0 Bcf/d for the week under review, as compared to 2.8 Bcf the week before.

Henry Hub price dropped week-on-week due to warmer temperatures, EIA noted in the report. The national benchmark Henry Hub spot price fell 31¢ from $3.87/MMBtu last Wednesday to $3.56/MMBtu two days before.

The agency said earlier this month it had reduced its forecast for Henry Hub natural gas spot prices this year. In its latest Short-Term Energy Outlook, the agency said Henry Hub gas prices would average $2.88 per million British thermal units in 2018 and $2.92/MMBtu in 2019.

On the other side, the agency said that the US LNG exports will continue to climb this year and are expected to nearly triple in the second half of 2019.

The US currently exports the fuel only via Cheniere’s Sabine Pass plant in Louisiana, however, new export facilities are expected to come online during the year.

EIA estimates LNG exports will average 3.0 Bcf/d in 2018, up from 1.9 Bcf/d in 2017.

EIA also expects the Cove Point terminal in Maryland, which is expected soon to ship its first cargo, to ramp up to full capacity during the year.

LNG World News Staff