Freeport LNG’s inert gas problem has reared its head once more. The daily average nitrogen mol% at the Stratton Ridge delivery point along the Coastal Bend Header (CBH) which supplies the majority of feedgas for Freeport LNG (black line on graph below), began ramping up on February 2nd (just in time for Groundhog Day) and has held above the level 1 alert (0.8 mol% nitrogen, yellow line in graph below). What is troublesome for the liquefaction trains, is the nitrogen’s flirtation with the level 3 alert (1.0 mol% nitrogen, red line in graph below). Over 1mol% nitrogen is a problem for Freeport LNG, in part due to the facility’s difficulty in handling excessive nitrogen. Although Gulf South makes up over half of the nitrogen delivered into CBH, they do not report flow data with accompanying gas quality for the connections near Freeport LNG, only for connections into CBH, making it difficult to find a clear source of the nitrogen making it's way into CBH.
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Let Me Move You, Part 5 - How LNG Exports Will Change Gulf Coast Natural Gas Markets in 2019
One of the biggest factors affecting the U.S. natural gas market in 2019 will undoubtedly be the dramatic rise in LNG export demand. The slate of liquefaction and LNG export capacity additions this year will boost U.S. demand for feedgas supply to nearly 9 Bcf/d by the end of the year, almost tripling the 2018 full-year average of 3.1 Bcf/d and close to doubling the December 2018 average of 4.6 Bcf/d, with the lion’s share of that growth happening along the Texas and Louisiana Gulf Coast. Three liquefaction trains — one each at Cheniere Energy’s Sabine Pass and Corpus Christi terminals, as well as one at Cameron LNG — are likely to be fully operational in the first quarter, with five additional trains due in rapid progression later in 2019. That much new gas demand concentrated in one region is bound to disrupt physical flows and pricing dynamics. Today, we wrap up the series with a look at the timing and feedgas routes for the final two facilities: Freeport LNG in Texas and Kinder Morgan’s Elba Island project in Georgia.
Last Mile of the Way - Moving Gas to LNG Export Projects on the Texas Gulf Coast
A total of 13 U.S. liquefaction trains with a combined capacity of about 58 MTPA (~8 Bcf/d) are either in early stages of operation along the Gulf Coast or under construction and scheduled to be online by the end of 2019. Of that, about 3.2 Bcf/d is being developed along the Texas Gulf Coast. Beyond that, a “second wave” of liquefaction projects is lining up, with as much as an additional 11 Bcf/d of capacity proposed for Texas by the early 2020s. While many of these second-wave projects may not get built, those that do will require the construction or rejigging of hundreds of miles of pipelines, particularly along that Gulf Coast corridor. Several of the first and second wave liquefaction projects have proposed to build laterals that connect to and branch out from nearby long-haul pipelines, creating new Gulf Coast-bound delivery points for Eagle Ford shale gas as well for supply that will eventually move south from supply basins as far north as the Marcellus and Utica shales. Today, we take a closer look at these liquefaction-related pipeline projects and how they will connect to and impact the existing pipeline network.
Let Me Move You - New Liquefaction Trains, Pipeline Capacity Revving Up Gulf Coast Feedgas Demand
Feedgas demand at U.S. LNG export terminals has climbed 1.3 Bcf/d, or ~40%, in just three months to an average 4.4 Bcf/d in December to date and hit an all-time single-day high of over 4.6 Bcf/d last Tuesday. The big jump in demand came as U.S. Gulf Coast LNG operators have begun commissioning three new liquefaction trains, including the initial trains at two new export terminals. At the same time, pipeline expansions targeting both existing and newly active terminals have been completed to meet that demand. How are the new trains being supplied and what’s the effect on gas flows? Today’s blog takes a closer look at recent changes in liquefaction and feedgas delivery capacity and their effect on feedgas flows, starting with Cheniere Energy’s Sabine Pass Liquefaction.
