US LNG Exports Hit New Record High!

Guest “And the year is only half over!” by David Middleton

JULY 27, 2021
U.S. liquefied natural gas exports grew to record highs in the first half of 2021

U.S. exports of liquefied natural gas (LNG) continued to grow in the first six months of 2021, averaging 9.6 billion cubic feet per day (Bcf/d). This average marks an increase of 42%, or 2.8 Bcf/d, compared with the same period in 2020 (according to the U.S. Department of Energy’s LNG Monthly reports and our estimates for June 2021, based on shipping data from Bloomberg Finance L.P.). During the summer months of 2020, U.S. LNG exports fell to record lows, but they set consecutive record highs in November and December.

U.S. LNG exports increased in the first half of this year as international natural gas and LNG spot prices increased in Asia and Europe due to cold weather. Rising global LNG demand once COVID-19 restrictions began to ease, as well as continuous unplanned outages at LNG export facilities in several countries (including Australia, Malaysia, Nigeria, Algeria, Norway, and Trinidad and Tobago), also contributed to increased U.S. LNG exports.

In Asia, colder-than-normal winter temperatures led to increased demand for spot LNG imports. Natural gas demand in the spring continued to rise amid low post-winter inventories, which contributed to unseasonably high natural gas prices. The high prices prompted a higher demand for more flexible LNG supplies, particularly from the United States.

In Europe, natural gas storage inventories were also low following a cold winter. Increasingly hot temperatures in May and June and greater natural gas demand from the electric power sector contributed to high natural gas spot prices. Europe’s natural gas spot prices have historically been lower than prices in Asia; however, this year, Europe’s natural gas prices are tracking Asia’s spot LNG prices more closely to attract flexible LNG supplies from around the world to refill storage inventories.

The U.S. Henry Hub natural gas benchmark and U.S. LNG spot market prices have been lower than prices for international natural gas and spot LNG this year. This price difference has supported record volumes of U.S. LNG exports. U.S. LNG exports also increased because of new export capacity added in 2020. The final liquefaction units were commissioned at FreeportCameron, and Corpus Christi LNG, and the remaining small-scale units were placed in service at Elba Island LNG. The new units increased total U.S. LNG export capacity by a combined 2.7 Bcf/d for a total peak capacity of 10.8 Bcf/d.

Similar to 2020, Asia remained the top destination for U.S. LNG exports from January through May in 2021, accounting for 46% of the total. Asia was followed by Europe, which had a five-month average share of 37%. Exports to Latin America also increased, particularly to Brazil, which is experiencing its worst drought in more than 90 years.

In June, U.S. LNG exports declined slightly, mainly as a result of maintenance on several pipelines that deliver natural gas to U.S. LNG export facilities. Yet, we expect LNG exports to remain at high levels in the remaining months of this year in our Short-Term Energy Outlook.

Principal contributor: Victoria Zaretskaya


Source: Graph by the U.S. Energy Information Administration (EIA), based on data from the U.S. Department of Energy’s LNG Monthly, EIA’s estimates for June 2021, and EIA’s Liquefaction Capacity Table

LNG prices in Europe and Asia are now actually on par with Brent crude oil…

Source: Graph by the U.S. Energy Information Administration, based on data from Bloomberg Finance, L.P.

The export market is diverse and growing…

Source: Graph by the U.S. Energy Information Administration, based on data from the U.S. Department of Energy’s LNG Monthly reports

Frac on!

In other bad news for SJW’s, CJW’s & Frac’tards

Jul 25, 2021
Carbon-Neutral LNG: Another Reason Why Natural Gas Could Win ‘The Energy Transition’

Jude Clemente
I cover oil, gas, power, LNG markets, linking to human development.

Demand For Natural Gas Can Only Grow

Now at 375 Bcf/d, the reality of the world’s energy situation is that natural gas demand is set to grow substantially in the years ahead.

Any serious low-carbon outlook has gas as a foundational resource. Experts at McKinsey model “resilient” gas demand through 2050, even in an accelerated transition scenario to meet climate change goals.

The world is simply too poor, too fast-growing, and too energy-starved for this not to be true: more practically, the U.S. Department of Energy forecasts a 40-45% jump in global gas consumption. The International Energy Agency’s (IEA) new climate road map assumes that energy demand will be 8% lower in 2050 than today but serve an economy twice as big and a population with over 2 billion more people.


The Growth In Carbon-Neutral LNG

Nowhere is this constant evolution of the gas industry more evident than in the sale of liquefied natural gas via cargo ship (LNG), the key to the industry’s global future. In fact, net-zero companies like Shell and BP have been planning to double their LNG portfolios to meet climate targets.

Started over the past two years, there have been around 15 carbon-neutral LNG cargoes, “creating a framework for real emissions reductions,” per experts at Columbia University. Tighter restrictions on GHGs will bring even more carbon-neutral LNG. The carbon-neutral LNG market is on track to quadruple this year, with even China recently getting in on the act.

As for U.S. LNG exports in particular, experts at Rice University report that the global demand surge, non-oil-linked pricing, and the perpetual hunt for supply diversification will keep us integral to the market. Quietly, U.S. LNG exports have been hitting records under President Biden even in the lower demand time of summer (~10 Bcf/d).



The “around 15 carbon-neutral LNG cargoes” were CO2-neutered through the purchase of “nature-based” offsets…

Cheniere delivers its first carbon-neutral LNG cargo to Shell
May 5, 2021, by Adnan Bajic
U.S. LNG export project developer Cheniere has supplied a carbon-neutral cargo to Shell from its Sabine Pass LNG facility in Louisiana.


Cheniere noted in its statement that the carbon-neutral LNG cargo was delivered to Europe in early April.

Offsets used were bought from Shell’s global portfolio of nature-based projects with Cheniere purchasing the portion attributable to estimated CO2e emissions associated with activities upstream of the FOB delivery point, including production and liquefaction.


Offshore Energy

Although, in the not to distant future, Cheniere and other Gulf Coast emitters will be able to geologically sequester their CO2 emissions. Like it or not, it’s already moving forward on the Gulf Coast

Panther Gulf Coast CO2Pipeline Project

–Utilizes existing onshore and offshore large diameter 16” pipelines 

–Utilizes 13+ acre onshore site as needed for dehy, compression, pumps, etc…

–CO2 flow capacity in gas phase is estimated at 3-3.5 million tons annually (mta)

–Higher CO2 flow rate capacity available in dense phase (1,100+ psig)

–Northern terminus is very close to Golden Pass LNG, Sempra PALNG and Cheniere LNG sites

–Potential to connect to multiple onshore and offshore CO2 sequestration sites in Texas and Louisiana

–Texas state water portion is in proximity to two large offshore CO2 sequestration areas identified by Bureau of Economic Geology (BEG) for the University of Texas at Austin (UT-Austin) . The studies presented highlight the prolific CO2 storage potential for two separate Texas state water offshore fields known as High Island Large Block 10 (HI 10L)  & High Island Large Block 24 (HI 24L)

–Favorable and flexible transport rates since utilizing existing assets 

Panther Companies

And in the Mid-Continent

Carbon-capture pipelines offer climate aid; activists wary
July 24, 2021

SIOUX FALLS, S.D. (AP) — Two companies seeking to build thousands of miles of pipeline across the Midwest are promising the effort will aid rather than hinder the fight against climate change, though some environmental groups remain skeptical.

The pipelines would stretch from North Dakota to Illinois, potentially transforming the Corn Belt into one of the world’s largest corridors for a technology called carbon capture and storage.


AP News

And even the Peoples Republic of Califironia…

Moniz-led group unveils CCS road map

A threatening question hangs over California’s 412,000 oil and gas industry workers: Will their jobs evaporate as the state pursues its path-breaking conversion to carbon-free energy by 2045?

One answer would come from the creation of an entirely new industry in the state — the capture and underground storage of carbon dioxide emissions from gas-fired power plants and manufacturing operations, according to a report issued yesterday.

The proposal to make California a center of carbon capture and storage (CCS) development was issued yesterday by researchers from Stanford University and the Energy Futures Initiative, a think tank led by former Obama administration Energy Secretary Ernest Moniz.

Under their plan, a significant share of the state’s gas-fired power plants, tagged for elimination under the 2045 zero-carbon goal, would remain in operation to back up wind and solar generation — but their CO2 emissions would be captured and transported by pipeline to be pumped underground. From that start, CCS could be extended to remove CO2 emissions from other major California industries that also burn gas.

But CCS is sharply opposed by some climate and clean energy activists who see it as a backdoor strategy by the oil and gas industry to hold on to a large share of future electricity generation, limiting the ascendancy of wind and solar power, electric vehicles, and battery storage.


Stanford Earth

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via Watts Up With That?

July 27, 2021 at 12:00PM

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