US LNG is back on the rise and almost at the levels before Hurricane Laura hit the Gulf Coast. This weekend, Cheniere’s Sabine Pass ramped back up to levels seen right before going down – 1.5 Bcf/d. Cameron is still non-operational, with the plant itself being in “relatively good condition”. At today’s level of 5.3 Bcf/d, the total US LNG utilization is at 55%.
An Argus report over the weekend detailed the restart to be any time between the end of this month to end of October.
Some key lines from the article:
Entergy, western Louisiana’s main power utility, said on 2 September that the hurricane had caused “catastrophic damages”, which require “almost a complete rebuild of our transmission and distribution system that serves Calcasieu and Cameron parishes”.
The Calcasieu waterway, which leads to the Cameron facility, is currently restricted to vessels with a draught of below 34-36 ft (10.3-11 metres). This means that most unladen LNG vessels would be able to access the waterway, given the typical draught of an unladen LNG tanker is around 9.5m. But the draught would need to be higher to accommodate vessels, once laden
A few offtakers have already made arrangements, including buying spot cargoes
Full Article: https://www.argusmedia.com/en/news/2139311-cameron-lng-restart-uncertainty-underpins-price-gains
The loss of US LNG and Australia’s Gorgon is adding pressure to global LNG spot prices. Here is the latest look at the rolling prompt month contract.
Today’s Fundamentals:
Daily US natural gas production is estimated to be 87.5 Bcf/d this morning. Today’s estimated production is -1.08 Bcf/d to yesterday, and +0.22 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 72.1 Bcf today, +4.31 Bcf/d to yesterday, and +1.64 Bcf/d to the 7D average. US power burns are expected to be 36.44 Bcf today, and US ResComm usage is expected to be 8.8 Bcf.
Net LNG deliveries are expected to be 5.3 Bcf today.
Mexican exports are expected to be 6.6 Bcf today, and net Canadian imports are expected to be 3.4 Bcf today.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
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