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Posted on 10/23/2021 7:01:20 AM PDT by texas booster
Production issues at two of the largest U.S. liquefied natural gas export terminals threaten to reduce shipments just as an energy crisis hits Europe and Asia, where buyers are desperately trying to rebuild depleted inventories ahead of winter.
Freeport LNG is experiencing a wax buildup in its pipelines due to impurities in the gas it receives, said people with direct knowledge who asked not to be identified. As a result, LNG shipments from the Texas export terminal will be reduced for the remainder of October through November, the people said. Freeport officials declined to comment. ...
Meanwhile, a production unit known as Train 3 at Cheniere Energy Inc.’s Sabine Pass LNG export terminal is down due to mechanical issues, people with direct knowledge said. Cheniere officials didn’t immediately reply to a request for comment. Gas flows to the plant are down about 21% from the previous week, BloombergNEF figures show. The ship channel for the plant was shut part of the day on Thursday due to fog.
(Excerpt) Read more at gcaptain.com ...
Cheniere Energy has been operating for a long time and mechanical issues are just part of the game.
Fog? I suspect that fog is one of those things that 100,000 ton ships respect.
But this does explain why exports are down a bit.
It didn’t have a slight chance to meet demand to start with.
Euro idiots who fell into the scam and placed the red tape all around the Russian pipelines in favor of LNG are about to freeze their butts off.
The biggest problem to me is that the price of natural gas is currently prohibitive for fertilizer production and the plants are going out of business as we speak.
Actual hunger by the summer next year is very likely.
Why exactly are we exporting LNG anyway? We have finite domestic natural gas supplies. Why ship them overseas?
I can see the coal burning electric plant off in the distance. I see the WVa coal coming down the Ohio by barge and rail everyday to generate my electricity. How long before DC kills this source off completely?
China pays $2000 per tcm.
The issues at the two LNG export terminals — which together account for more than half of U.S. production — come at a time when European and Asian buyers are seeking to build inventories ahead of winter and are paying nearly six times the prices of natural gas in the U.S.
Wowsers.
LNG carrier rates top $260,000 per day as arbitrage profits exceed $100m
We have to destroy the village so we can build back better. Let’s go Brandon!
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Very good post.
The Great Reset is underway.
Hmmmm. I had a wax/plaque build up in my left internal carotid. Got that cleaned out and now have an increased flow to my cranial cavity. Sort of the same thing but on a much larger scale. The pipeline that is. :-}
There is a surplus of natural gas produced in the US, far above what we use domestically, that is “associated gas”. Every barrel of crude oil has dissolved gas in it, about 1000 to 3000 std. cubic feet. Alternatives to exporting are storage, which has limited space and pipeline access, or flaring the gas on site. Flaring is only permitted early in well life. It’s discouraged by the feds, and limited by states, often by state law. No revenue is made on flared gas, no taxes, no mineral owner payments. It’s wasteful to flare, but it does facilitate the abundant oil production. So the associated gas needs to go to market and be sold. LNG is the outlet. Shutting down LNG exports would force a slowdown of domestic crude production.
Thx for the post.
Interesting Poland is getting next shipment from Freeport.
Made me wonder how they prioritize who gets shipments and who doesn’t
Countries that don’t have policies that oppose fossil fuels should be at the head of the line.
IM(not so)HO
RULE 4: “Make the enemy live up to its own book of rules.”
Refine baby refine. (oh... and ship all that refined product)
Poland is getting hammered by the EU over a multitude of issues, especially social issues.
It makes sense for US companies to export to them ... and let the other Eurowienies freeze.
So how do we stop exports to DC?
I will bet that most politicians and ecowarriors have no idea about all of the things in life that come from petroleum and its brethren.
No fertilizer? Good luck getting acceptable yields from modern crops.
Hunger has been the motivator behind many a peasant revolt ...
We think that natural gas resources are finite, but once extracted as a by product of oil production or from a primary gas well, it needs to be processed and stored.
Only so much production and storage capacity.
And shipping it to allies for a better price does tend to help the company bottom line.
In the Trump era with fracking rigs booming all over including on federal land USA had Gas to spare
Now that Brandon has shut off fracking on federal lands and stopped pipeline developments as well as Newscum preventing use of gas in new buildings in CA, we have a lot less gas available.
Those old liberal memes don’t have much staying power do they?
But I suspect that LGB will be with us for a long, long time.
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