Posted on 03/19/2022 3:38:19 PM PDT by blam
◾Gulf Coast liquefaction facilities are operating near capacity thanks to strong demand.
◾Europe is rushing to replenish its exhausted gas reserves.
◾Eikon: 27 LNG tankers were either on their way to Gulf Coast export terminals or already there.
Close to a record number of liquefied natural gas tankers are crowding Gulf Coast export terminals as U.S. exports of the superchilled fuels run at record rates.
Reuters reported that Gulf Coast liquefaction facilities are operating near capacity thanks to strong demand, especially from Europe, which is currently trying to replenish its exhausted gas reserves.
Citing data from Refinitiv Eikon, Reuters wrote that some 27 LNG tankers were either on their way to Gulf Coast export terminals or already there. As a result, liquefied natural gas exports could reach 6.47 million tons this month, according to Kpler, beating the previous monthly record of 6.3 million tons set in January.
Europe has morphed into the biggest market for U.S. liquefied natural gas over the past three months, as concern about the geopolitical tensions around Ukraine prompted the EU to seek alternatives to Russian gas in case Moscow turned off the taps, even though Moscow has repeatedly said that it has no such plans.
As a result of the surge in demand for U.S. LNG, the country overtook Qatar to become the world’s largest exporter of the commodity. U.S. LNG is one of the European Union’s preferred alternatives to Russian pipeline gas, whose consumption the union is trying to cut by two-thirds within a year.
Last week, the chief executive of the largest U.S. natural gas producer, EQT, said the United States could easily replace Russian gas, which last year accounted for 45 percent of total EU gas imports.
“We’ve got the ability to do more, the desire to do more,” EQT’s Toby Rice told the BBC, estimating that the United States had enough gas to quadruple current output by 2030.
However, environmentalists have been quick to protest the increase in LNG exports, with a coalition of more than a hundred organizations calling on banks to stop financing LNG export terminal projects. Environmentalist protests, according to a Reuters report, have led to the shelving of an interagency review on ways to boost LNG exports to Europe.
Expect to see natural gas prices rise domestically, as our NG goes overseas.
We used to generate a lot of NG when we were still fracking.
Trump was Right.
[Again and again...]
(Many informative charts at that site)
A product nobody wanted just 60 years ago. If it was dirt cheap and in exactly the right location it was used. The time to buy it is the spring and fill storage in the EU by August.
Now it is cheaper to transport than crude oil per energy unit and the greens backed into recommending it as fuel of the gap source of energy until a solar storage future. The other players will just decide, storage or mass produced nuclear end up being the same cost at scale. Land use being what it is legally.... Whomever takes US navy technology and shoves it into International shipping container sized nuclear reactors Ill invest in. Power plants on barges are well known and easy to park in a containment lake that is also the cooling pond.
It is ok to sell energy overseas; that means America will be making money.
Some may think it is evil for Americans to make money but it is not if we are honestly making a product someone wants to buy.
I wouldn't sell anything to an enemy that they could shoot back at us; that is a different story.
I would be glad to let someone look for energy in my front yard if there is a market at $100 per barrel.
No mention of Russia as the world’s largest exporter of titanium.
You reminded me of this:
The Interesting History Of Vaseline (aka Petroleum Jelly)
Here's(Story of Vaseline ) a more complete and interesting story than the one above.
Not how LNG maket works, the people who make LNG at the end of a natural gas pipeline buy in spring for summer and fall delivery typicaly in a location right next to a LNG carrier (a very specialized ship). They compress and cool NG when electricity or natural gas is near free to them. The speed at which NG is extracted from the ground and “proven reserves” tax wise is entirely by demand. There are storage fields but these serve as buffers and suppliers to the spot market. The gas pipeline companies have increasable delivery volumes to port locations that chill and compress LNG.
The storage technology of LNG also serves to stabilize prices of a US market that varies by as much as 60% per day in the winter. Brexit allows the english to once again tap the north sea when dollar signs appear on the spot delivery market, and hell russian gas is unstable.....right?
Putin played right into western NG suppliers hands until he leaves.
Do you buy your buy propane for home heating in early April, June or October? When I had the big bottle I signed a contract in late May, the service firm kept the bottle full.
The EU customer is no different, they buy a series of delivery contracts that are cheaper than the day to day spot price. They charge their customer the spot price if allowed by regulators. The item in limited status is the storage.
"Expect to see natural gas prices rise domestically, as our NG goes overseas. We used to generate a lot of NG when we were still fracking."
Yup.
"It is ok to sell energy overseas; that means America will be making money."
Yup. But as PapaBear pointed out, we used to generate a lot when we were fracking. Now that we're not fracking, y'alls natural gas bills will go up even more so from the increased demand. We ought to drill, baby, drill so much that even when other countries buy some from us our prices are still low. But we're not gonna cuz Dims be Dims and there's nothing we can do to change that.
That's why I got rid of my natural gas bill and did what I could to cut my power bill in half (which also rises when natural gas rates rise). I ain't trying to save Greta from cow farts. I'm trying to save my soon-to-be-retired budget from Dim-caused energy inflation. They've been promising it and they're delivering, while promising even more pain.
And to think during the fracking peak a few years back we were flaring off big amounts of natural gas.
Last week, the chief executive of the largest U.S. natural gas producer, EQT, said the United States could easily replace Russian gas, which last year accounted for 45 percent of total EU gas imports.
Still, as demand for overseas delivery rises, and domestic production falls, prices to US customers will rise. Maybe not today, but they will.
One of these days.
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