New U.S. liquefaction trains and export terminals coming online are entering an increasingly oversupplied, lower-priced global market. Even so, domestic LNG exports have continued to climb with each new train that is commissioned and commercialized. Feedgas deliveries to the terminals hit an all-time high well above 7 Bcf/d this past week and have stayed up there the past several days. That’s because more than 90% of the operating or commissioning liquefaction capacity is underpinned by long-term Sales and Purchase Agreements (SPAs) that keep cargoes flowing. Planned facilities still under construction are contracted at a similar level, and we expect that to keep U.S. LNG exports on a growth trajectory that’s in line with the commissioning and construction schedules of new plants, to a large extent regardless of international price trends. Today, we continue a series on U.S. LNG export cargoes and destinations, this time with a focus on the existing capacity contracts for operational and commissioning terminals.
In Part 1, we discussed the status and size of the U.S. LNG export terminals that are already online or in the commissioning phase, as well as how the U.S. fits into the larger global market. The U.S. is the second-fastest growing LNG exporter globally, and accounted for about 7% of all LNG exports last year. We also considered market factors in Asia and Europe, the two largest consumers of LNG, and how slowing global demand growth and rising supplies have led to a global oversupply and driven international gas prices to the lowest level they’ve been since the U.S. started exporting LNG in 2016. The low-price environment and bearish market conditions have challenged future U.S. export projects still in the development and financing phase, in turn delaying final investment decisions (FIDs). Near-term, this also has raised questions about potential disruptions to U.S. cargoes from already-operating terminals.
Visualize the infrastructure behind U.S. NGL movement.
The U.S. NGLs Map provides a comprehensive view of the transport, processing, and export networks moving NGLs across the U.S.
But, as we showed in Part 1, U.S. exports have not only been undeterred, but have continued to rise as new liquefaction trains are completed. In fact, evidence points to the pace of exports being driven more by terminal construction and commissioning schedules, as well as maintenance events, than by the global market. In July of this year, for instance, U.S. exports hit an all-time high of 45 cargoes exported, even as prices at European benchmark hub National Balancing Point (NBP) and Asian benchmark Japan-Korea Marker (JKM) fell to multi-year lows. That export record was matched in September, and further, we are likely to break that record before the end of the year, regardless of the changing price spreads to international destinations.
Join Backstage Pass to Read Full Article
About the song
“Steady, As She Goes,” was written by Jack White and Brendan Benson and is the first track and debut single from the Raconteurs’ first album, Broken Boy Soldiers. Released in May 2006, the song went to #1 on the Billboard Alternative Songs and #54 on the Billboard Hot 100 Singles charts. Personnel on the record were: Jack White (vocals, guitar, keyboards), Brendan Benson (vocals, guitar, keyboards), Jack Lawrence (bass, backing vocals), and Patrick Keeler (drums).
Broken Boy Soldiers was recorded during 2005 at Le Grande studio in Detroit and produced by Brendan Benson and Jack White. White and Benson wrote all the songs on the album. Released in May 2006, it went to #7 on the Billboard 200 Albums chart. Four singles were released from the LP.
The Raconteurs are an American rock band formed in Detroit in 2005 by Jack White, Brendan Benson, Jack Lawrence and Patrick Keeler. Lawrence and Keeler were members of the Greenhornes, and White and Lawrence are also members of the Dead Weather. The band is based in Nashville and released their last studio album, Help Us Stranger, in June 2019. They released a live EP, Live at Electric Lady, in May 2020 and have plans for a future release of a live album, Live in Tulsa, from recordings made at Cain’s Ballroom in Tulsa during October 2019. They have released three studio albums, one live EP, and 14 singles.
Jack White (John Anthony Gillis) is an American singer, songwriter, multi-instrumentalist, record producer and record label owner (Third Man Records). As a solo artist, he has won 14 Grammy Awards, a Brit Award, and five MTV Video Music Awards. He has released five studio albums, six live albums, one compilation album, and 20 singles. With The White Stripes, he released six studio albums, 12 live albums, and 26 singles. With the Dead Weather, he released three studio albums. With the Raconteurs he released three studio albums, one live EP, and 14 singles. White initially came to prominence as the singer and guitarist in the Detroit garage rock duo The White Stripes. He runs Third Man Records in Nashville, and lives in Nashville and Tulsa. He continues to record, produce, and tour with various projects.
