Golden Pass LNG cleared to export

[thackney]

Golden Pass LNG cleared to export
http://fuelfix.com/blog/2017/04/25/golden-pass-cleared-to-export-lng/

The Golden Pass LNG terminal on the Texas Gulf Coast was cleared by the Department of Energy Tuesday to begin exporting up to 2.21 billion cubic feet of gas per day.

Located outside Sabine Pass, the Golden Pass terminal was built to import LNG from abroad in 2009. But following the boom in domestic gas production through hydraulic fracturing and horizontal drilling, Golden Pass, a joint venture between Qatar Petroleum, ExxonMobil and ConocoPhillips, shifted gears.

The approval adds to a growing list of LNG export terminals under development in the United States. Cheniere Energy began exporting last year from its Sabine Pass terminal in Louisiana. As of January, there were seven facilities under construction and another four that had been approved but not yet begun construction, according to the Federal Energy Regulatory Commission.

“This announcement is another example of President Trump’s leadership in making the United States an energy dominant force,” U.S. Secretary of Energy Rick Perry said in a statement Tuesday. “This is not only good for our economy and American jobs but also assists other countries with their energy security.”

There has been no announcement on when the export facility will be completed. But Golden Pass is estimating construction will provide 45,000 direct and indirect jobs over five years, along with another 3,800 direct and indirect jobs over the next 25 years when the facility becomes operational.

[thackney]

[Weird Tolkienish Figure]

 

[Bigun]

Great news!  Trade deficit will come down!

[thackney]

Great news!  Trade deficit will come down!

In 2016, the US exported 2.3 Trillion Cubic Feet of Gas.  LNG was less than 10% of that.  But it is going to be growing in the next few years.  The average pipeline gas price was $2.63 while the LNG price was $4.71.

Total value ~$6.5 Billion in 2016.

U.S. Natural Gas Exports and Re-Exports by Country
https://www.eia.gov/dnav/ng/ng_move_expc_s1_a.htm

[catfish1957]

And in Qatar's eyes, sure beats flaring. it.

[IsailedawayfromFR]

In 2016, the US exported 2.3 Trillion Cubic Feet of Gas.  LNG was less than 10% of that.  But it is going to be growing in the next few years.  The average pipeline gas price was $2.63 while the LNG price was $4.71.

Total value ~$6.5 Billion in 2016.

U.S. Natural Gas Exports and Re-Exports by Country
https://www.eia.gov/dnav/ng/ng_move_expc_s1_a.htm

Since export by truck was close to $10, maybe we should build more trucks.

[IsailedawayfromFR]

In 2016, the US exported 2.3 Trillion Cubic Feet of Gas.  LNG was less than 10% of that.  But it is going to be growing in the next few years.  The average pipeline gas price was $2.63 while the LNG price was $4.71.

Total value ~$6.5 Billion in 2016.

U.S. Natural Gas Exports and Re-Exports by Country
https://www.eia.gov/dnav/ng/ng_move_expc_s1_a.htm

great source.

It almost boggles my mind on the fact the US is exporting to both UAE and to Kuwait

[thackney]

Since export by truck was close to $10, maybe we should build more trucks.

Like LNG, the higher price comes from the cost of delivering by that method.

Trucks are for very limited markets, upset conditions, etc.

[IsailedawayfromFR]

Like LNG, the higher price comes from the cost of delivering by that method.

Trucks are for very limited markets, upset conditions, etc.

Not entirely.  Look at LNG price in prior years was over $10.

This was almost exclusively from LNG sales to Japan from Kenai.

[thackney]

Not entirely.  Look at LNG price in prior years was over $10.

This was almost exclusively from LNG sales to Japan from Kenai.

Back when demand was far above supply.  More balance in the market today.  Many more suppliers.

[geronl]

“This announcement is another example of President Trump’s leadership in making the United States an energy dominant force,” U.S. Secretary of Energy Rick Perry said in a statement Tuesday. “This is not only good for our economy and American jobs but also assists other countries with their energy security.”

puh-leeze spare us the propaganda crap

[IsailedawayfromFR]

Back when demand was far above supply.  More balance in the market today.  Many more suppliers.

During 2015?  I do not think that many more suppliers are here now compared to then on a world-wide basis, which is the LNG market.

Plenty of suppliers in the ME, Australia during 2015.  What little has come on in last two years certainly does not bring down the price by a factor of 4.

[thackney]

During 2015?  I do not think that many more suppliers are here now compared to then on a world-wide basis, which is the LNG market.

Plenty of suppliers in the ME, Australia during 2015.  What little has come on in last two years certainly does not bring down the price by a factor of 4.

In 2015, global LNG trade reached 244.8 MT, marking the
largest year for LNG trade in the industry’s history and
rising above the previous high of 241.4 MT set in 2011.
Although no new exporters joined the market, several new
plants delivered their first cargoes, contributing 6 MT of new
supply. This was more than enough to counter the feedstock
and domestic instability issues that led to sizeable declines
from several existing exporters, namely Yemen, Angola and
Egypt. Four new markets – Egypt, Jordan, Pakistan and
Poland – began importing LNG in 2015, bringing the number
of global LNG importers up to 33 .

IGU 2016 World LNG Report
http://www.igu.org/download/file/fid/2123

Only 17 countries exported LNG in 2015, down from 19 in
2014; Angola LNG was shut-down for extended repair work in
early 2014, while Egypt exported its last cargo in late 2014 as
rapid domestic demand growth diverted gas from its export
plants.

The Middle East’s five-year reign as the largest exporting
region was upheld in 2015, with the region accounting for
38% of total exports, but new supply from Australia and
elsewhere in Asia-Pacific narrowed the gap...

[thackney]

During 2015?  I do not think that many more suppliers are here now compared to then on a world-wide basis, which is the LNG market.

Plenty of suppliers in the ME, Australia during 2015.  What little has come on in last two years certainly does not bring down the price by a factor of 4.

From the same link:

The drop in oil prices and a
looser supply market led to
a ~50% decline in Northeast
Asian spot prices in 2015,
falling from an average
$15.01/MMBtu in 2014
to $7.83

Prices did not average $10 or up.

[IsailedawayfromFR]

From the same link:

The drop in oil prices and a
looser supply market led to
a ~50% decline in Northeast
Asian spot prices in 2015,
falling from an average
$15.01/MMBtu in 2014
to $7.83

Prices did not average $10 or up.

Ok, we are talking over each other.

The link you had for US export LNG prices showed that prices went down from $10.92 in 2015.

I made the statement that this is due to high prices from the primary LNG export terminal at the LNG plant on the Kenai peninsula.

Then you said the drop was due to less demand and more supply.

What I had said was related to the US export market while what you had said referred to the worldwide LNG market.

The worldwide LNG market did not have anything drastically improving LNG supply since 2015 but the US export market did.