February 4, 2019 [S&P Global Platts] - Little to no feedgas has flowed to Cheniere Energy's LNG export terminal near Corpus Christi, Texas, for most of the last two weeks as commissioning activities have continued ahead of the start of commercial service, perhaps as early as February, S&P Global Platts Analytics data showed Wednesday.
Houston-based Cheniere has been by far the most active exporter of LNG produced from shale gas — shipping cargoes from its facilities in Texas and Louisiana — and it expects to remain so even as Dominion Energy continues operations at Cove Point in Maryland and as three more developers start up terminals later this year.
Unlike most of current crop of developers, Cheniere markets and ships a significant amount of LNG on a spot basis to meet seasonal demand in Asia, Europe and Latin America, in addition to the cargoes it loads for its commercial customers.
It operates five liquefaction trains at Sabine Pass, with a sixth proposed, and one at Corpus Christi, with two more planned there. Mid-scale liquefaction units also are planned for the Texas site. The company is scheduled to update investors on its market outlook when it releases its latest financial results February 26.
The last vessel to leave with an export cargo from Cheniere’s Texas terminal was the LNG Schneeweisschen on January 17, marking the fifth LNG cargo to depart from the terminal since shipments began in December, according to cFlow, Platts trade flow software. LNG feedgas deliveries to Corpus Christi began to curtail on January 16 and have been at zero since then, with the exception of two days seeing less than 10 MMcf/d.
A Cheniere spokesman, Eben Burnham-Snyder, said Wednesday that the flows were the result of normal commissioning activities. It is common for flows to ramp up and down, and fluctuate, during commissioning of LNG trains. Platts Analytics estimates Train 1 should be gearing up for commercial service at some point next month, barring any delays. Cheniere has said in regulatory filings that it expects substantial completion of Train 1 in the first quarter, which ends March 31.
Before feedgas deliveries ramped down over the past two weeks at the terminal near Corpus Christi, deliveries in the first half of January averaged upwards of 587 MMcf/d, hitting an all-time high of 781 MMcf/d on January 11, Platts Analytics data show.
During that time, deliveries commonly exceeded Train 1’s nameplate capacity of 600 MMcf/d, in reaction to the Federal Energy Regulatory Commission’s authorization to introduce fuel gas to Train 2, increasing the likelihood that Train 2 could potentially come into service before its initial in-service date set for August. Cheniere has said it expects substantial completion of Train 2 in the second half of this year.
Meanwhile, Kinder Morgan, Sempra Energy and Freeport LNG are all expected to start up LNG export terminals in the US this year. Another dozen or so developers that would make up the second wave of US liquefaction are expected to receive terminal permit decisions from US regulators this year and early next year.
—————————-
TankTerminals.com – Research, Market and Expand Your Presence within the Tank Storage Industry. Learn more.
| ID:5293
