Cameron LNG Train 3 has officially been placed into commercial operation by McDermott. With the additional train, the total plant capacity is now 12 Mtpa of 1.7 Bcf/d. The pipeline nomination data has already shown the ramp up, but still not near capacity.
In global LNG news, Chevron has been ordered by the local Industrial Safety Inspector to inspect the propane heat exchangers at Gorgon LNG’s Train 1 and 3. The issue brought up by the trade union needs to be done before Aug 21st. The start up of Train 2 has been delayed after discovering an issue during a regular maintenance period. Repairs are currently going on. The delayed started could potentially help move more US LNG to Asian destinations.
Gorgon is 47.3% owned and operated by Chevron. Exxon Mobil Corp (XOM.N) and Royal Dutch Shell (RDSa.L) each own 25%, and the rest is held by Japanese firms.
Today’s Fundamentals:
Daily US natural gas production is estimated to be 84.4 Bcf/d this morning. Today’s estimated production is -2.4 Bcf/d to yesterday, and -2.14 Bcf/d to the 7D average. Today’s drop comes from the Gulf and Northeast regions. We should expect nominations to be restated higher in later cycles, but the drop in the Northeast could be related to scheduled maintenance on the Columbia Gas systems.
Natural gas consumption is modelled to be 76.7 Bcf today, -2.41 Bcf/d to yesterday, and +3.66 Bcf/d to the 7D average. US power burns are expected to be 42.54 Bcf today, and US ResComm usage is expected to be 7.9 Bcf.
Net LNG deliveries are expected to be 4.5 Bcf today.
Mexican exports are expected to be 6.1 Bcf today, and net Canadian imports are expected to be 5.3 Bcf today.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
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