U.S. liquefied natural gas exports have increased as new facilities come online

[thackney]

U.S. liquefied natural gas exports have increased as new facilities come online
https://www.eia.gov/todayinenergy/detail.php?id=34032
DECEMBER 7, 2017



In August 2017, total U.S. natural gas liquefaction capacity in the Lower 48 states increased to 2.8 billion cubic feet per day (Bcf/d) following the completion of the fourth liquefaction unit at the Sabine Pass liquefied natural gas (LNG) terminal in Louisiana. With increasing liquefaction capacity and utilization, U.S. LNG exports averaged 1.9 Bcf/d, and capacity utilization averaged 80% this year, based on data through November.

Sabine Pass, located on the U.S. Gulf Coast near the Louisiana-Texas border, consists of four existing natural gas liquefaction units, or trains, with a fifth train currently under construction. When complete, Sabine Pass will have a total liquefaction capacity of 3.5 Bcf/d. Five additional LNG projects are currently under construction in the United States, and they are expected to increase total U.S. liquefaction capacity to 9.6 Bcf/d by the end of 2019:

* Cove Point liquefaction terminal (one train, 0.75 Bcf/d capacity) in Maryland is 97% complete, and Dominion Energy expects to place it in service before the end of 2017.

* Elba Island LNG (10 modular liquefaction trains, 0.03 Bcf/d capacity each) in Georgia is owned by Kinder Morgan. Six trains are scheduled to come online in the summer of 2018, and four trains are scheduled to come online by May 2019.

* Freeport LNG (three trains, 0.7 Bcf/d capacity each) in Texas is being developed by Freeport LNG Development, L.P. The first train is expected to come online in November 2018, with the remaining two trains following in six-month intervals.

* Corpus Christi (two trains, 0.6 Bcf/d capacity each) in Texas is being developed by Cheniere and is expected to come online in 2019.

* Cameron LNG (three trains, 0.6 Bcf/d capacity each) in Louisiana is being developed by Sempra LNG and is expected to come online in 2019.



Overall utilization of existing LNG liquefaction facilities is expected to average 80% in 2017 and 79% in 2018, based on LNG export projections in EIA’s latest Short-Term Energy Outlook. Several factors can affect utilization rates, including weather-related disruptions, demand fluctuations, seasonality in import markets, production schedules for new LNG facilities, and maintenance on existing facilities.

At Sabine Pass, the ramp-up process, combined with maintenance on Train 1, resulted in capacity utilization for Trains 1 and 2 averaging 51% in 2016. Capacity increased in 2017 with the addition of Trains 3 and 4, but the ramp-up periods for those trains, as well as lower spring demand in markets in Asia and Europe and disruptions caused by Hurricane Harvey in August, limited total utilization.

Exports from Sabine Pass began to increase in September 2017 as Train 4 ramped up to full production—reaching 2.7 Bcf/d in November—with an overall capacity utilization rate of 96% across four trains. Utilization at Sabine Pass is projected to remain well above 90% in winter 2017–2018 as a result of expected strong natural gas winter demand and high spot LNG prices in Asia and Europe.

[IsailedawayfromFR]

Hard to believe the turbulent history of the LNG industry in this country from its modest beginnings of importing LNG, its shutdown, the modest reopening, then the dramatic 180 degree change to liquefaction and export.

Cove Point's history exemplifies this.  It is a history of survival and response to market changes.

History

Late 2017 - Commissioning and first LNG production.
March 2017 - In-service date for the Virginia facilities.
First Quarter 2016 - Began construction of the Virginia facilities.
October 2014 - Began construction of the liquefaction facilities.
January 2011 - A reinforced offshore platform was placed into service to accommodate advances in LNG ship technology.
March 2010 - Began construction of the pier reinforcement project.
July 2009 - The Commission issued an order authorizing the Pier Reinforcement Project.
February 2009 - DECP filed an application with FERC for the Pier Reinforcement Project (docket #CP09-60-000).
August 2006 - Dominion Energy received approval from FERC to increase the plant's daily output capacity to 1.8 Bcf per day and expand its storage capacity to about 14.6 Bcf.
Summer 2003 - Dominion Energy Cove Point received its first LNG shipment.
2002 - Dominion Energy purchased Cove Point from Williams.
2000 - Williams purchased Cove Point from Columbia.
1995 - Columbia reopened the facility to liquefy, store and distribute domestic natural gas for use in the growing Mid-Atlantic region.
1988 - Consolidated sold its interest in the terminal and the Cove Point pipeline to Columbia.
1978-1980 - Cove Point received ship-borne LNG imports from Algeria.
1970's - Cove Point was built by Consolidated Natural Gas Company, parent of what is now Dominion Energy Transmission, and they partnered with the Columbia Gas System to receive, store and process supplies of liquefied natural gas (LNG).
https://www.dominionenergy.com/about-us/natural-gas-projects/cove-point/cove-point-terminal