A new U.S. LNG export facility just started production, which will help cement the nation as the world's top exporter of the fuel 🇺🇸🎆🎉
Venture Global’s Calcasieu Pass facility in Louisiana produced its first LNG on Jan. 19, according to a FERC filing posted today
The US has been the world's top exporter of the fuel for the last two months as projects ramp-up output and Europe's energy crisis boosts overseas demand
UPDATE: Venture Global is seeking permission to load its first commissioning cargo at Calcasieu Pass LNG export terminal in Louisiana on or after Feb. 9, according to a filing
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Qatar is upset that Japan isn’t renewing its LNG contracts
🇶🇦💥🇯🇵
🥊 “You’ll get no sympathy from us the next time you need LNG,” a Qatar official said to Japan in Dec
🥊 Jera let a giant 25-year contract with Qatar lapse last year
New export projects will continue to ramp up production this year, cementing the US as the world's top LNG exporter through much of this decade
Out of the 101 U.S. LNG export cargoes in January, more than a third arrived at European ports, while five went to Latin American destinations and the rest remain in transit, shipping data compiled by Bloomberg shows
Gas-starved Europe has become a top destination for US LNG
The yellow line is oil. In the last few weeks, it has often surpassed cleaner nuclear and is a hair below natgas
Oil generators were producing more than 4.2GW on Thursday, accounting for 25% of power supply. Thats the highest since 2018
Prior to the storm, the liquefied natural gas tanker Cadiz Knutsen anchored in Massachusetts Bay. New England relies on overseas LNG imports to meet heating needs
But LNG shipments are way way more expensive than pipeline gas. Like 10-times more expensive
The US is prepared to ensure alternative natural gas supplies to Europe covering a potential shortfall from Russia, Biden administration officials said
🇺🇸🤝🇪🇺
🚢 Re-routing supplies could take several days/weeks
🇶🇦 Qatar wouldn’t be able to boost output
To be sure, most US LNG supplies are sold to utilities/portfolio players under long-term contracts. They need to have financial incentive to send more to Europe
In fact, some LNG shipments are already diverting away from Europe and going to Asia due to better profit potential
In other words, US LNG tends to go to whoever will pay the most 💰
Remember, the US government has no direct control over American LNG exports or where gas goes. They can negotiate with export projects, but most of their LNG is under contract to non-US firms (like Jera or Gail)
European natural gas prices surged by more than 10% today on escalating Russia-Ukraine tension 🇷🇺 📈
Goldman says Russian flows to Europe could be curtailed for “an indefinite period” if the Nord Stream 2 pipeline project to Germany is hit by sanctions
German power prices for Tuesday jumped to their highest in more than a month as output from thousands of wind turbines across Europe’s biggest market plunged 🇩🇪 💨
Less wind output forces utilities to burn to more gas