Guest “And the year is only half over!” By David Middleton
JULY 27, 2021
US liquefied natural gas exports rose to record highs in the first half of 2021
U.S. exports of liquefied natural gas (LNG) continued to grow in the first six months of 2021, averaging 9.6 billion cubic feet per day (Bcf / d). That average represents an increase of 42%, or 2.8 billion cubic feet per day, over the same period in 2020 (according to the US Department of Energy’s monthly LNG reports and our estimates for June 2021, based on shipping data from Bloomberg Finance LP ). US LNG exports fell to record lows in the summer of 2020, but hit record highs in consecutive November and December.
US LNG exports rose in the first half of this year as international natural gas and LNG spot prices rose in Asia and Europe due to the cold weather. Rising global demand for LNG following the relaxation of COVID-19 restrictions, as well as continuous unplanned outages at LNG export facilities in several countries (including Australia, Malaysia, Nigeria, Algeria, Norway and Trinidad and Tobago) also contributed to an increase in LNG in the USA for exports.
In Asia, above-average winter temperatures led to increased demand for spot LNG imports. Demand for natural gas continued to rise in the spring due to low post-winter inventories, which contributed to the unusually high natural gas prices. The high prices led to increased demand for more flexible LNG deliveries, especially from the USA.
In Europe, too, stocks of natural gas storage facilities were low after a cold winter. Increasingly hot temperatures in May and June as well as stronger demand for natural gas from the electricity sector contributed to the high spot prices for natural gas. Europe’s spot prices for natural gas have historically been lower than prices in Asia; This year, however, Europe’s natural gas prices are more closely following Asian spot LNG prices to attract flexible LNG deliveries from around the world to replenish stocks.
The US Henry Hub natural gas benchmark and US LNG spot market prices were lower than international natural gas and spot LNG prices this year. This price differential has supported record levels of US LNG exports. US LNG exports also increased due to new export capacity in 2020. The final liquefaction units were commissioned at Freeport, Cameron and Corpus Christi LNG, and the remaining small units were commissioned at Elba Island LNG. The new units increased total US LNG export capacity by a combined 2.7 billion cubic feet per day to a total peak capacity of 10.8 billion cubic feet per day.
Similar to 2020, Asia remained the top destination for US LNG exports from January to May 2021, accounting for 46% of the total volume. Europe followed Asia with a five-month average of 37%. Exports to Latin America also increased, particularly to Brazil, which is experiencing the worst drought in more than 90 years.
US LNG exports declined slightly in June, mainly due to maintenance work on several pipelines supplying natural gas to US LNG export facilities. In our short-term energy outlook, however, we expect LNG exports to remain high for the remaining months of this year.
Main contributor: Victoria Zaretskaya
Source: US Energy Information Administration (EIA) graph based on data from the US Department of Energy’s LNG Monthly, EIA estimates for June 2021, and EIA’s liquefaction capacity table
The LNG prices in Europe and Asia are now even at the level of Brent crude oil …
Source: US Energy Information Administration graph based on data from Bloomberg Finance, LP
The export market is diverse and growing …
Source: US Energy Information Administration graph based on data from US Department of Energy’s monthly LNG reports
In other bad news for SJWs, CJWs, and Frac’tards
July 25, 2021
CO2-neutral LNG: Another reason why natural gas could win the “energy turnaround”
I cover oil, gas, power and LNG markets and I am related to human development.
The demand for natural gas can only grow
The world’s current energy situation of 375 billion cubic feet per day looks like the demand for natural gas will increase significantly in the coming years.
Any serious prospect of low carbon energy has gas as a fundamental resource. McKinsey experts are modeling “resilient” gas demand through 2050, even in an accelerated transition scenario, to meet the climate change goals.
The world is simply too poor, growing too fast and too hungry for energy for this not to be true: The US Department of Energy is practically forecasting a 40-45% increase in global gas consumption. The new climate roadmap of the International Energy Agency (IEA) assumes that energy needs will be 8% lower in 2050 than today, but will serve an economy twice as large and a population of over 2 billion more people.
The growth of CO2-neutral LNG
Nowhere is this constant development of the gas industry more evident than with the sale of liquefied natural gas by cargo ship (LNG), the key to the global future of the industry. In fact, net-zero companies like Shell and BP plan to double their LNG portfolios to meet the climate goals.
In the past two years, around 15 CO2-neutral LNG loads have been launched, which, according to Columbia University experts, “create a framework for real emissions reductions”. Tighter restrictions on greenhouse gases bring even more CO2-neutral LNG. The CO2-neutral LNG market is expected to quadruple this year, with China even joining recently.
With regard to LNG exports from the USA in particular, experts from Rice University report that the global increase in demand, the non-oil-linked prices and the constant hunt for supply diversification will hold us in the market. US LNG exports quietly hit records under President Biden even in the summertime with lower demand (~ 10 billion cubic feet per day).
The “around 15 CO2-neutral LNG loads” were CO2-castrated by buying “nature-based” offsets …
Cheniere delivers its first CO2-neutral LNG cargo to Shell
BUSINESS DEVELOPMENTS & PROJECTS
May 5, 2021, by Adnan Bajic
The US LNG export project developer Cheniere has delivered a climate-neutral cargo to Shell from its Sabine Pass LNG plant in Louisiana.
Cheniere stated in his statement that the CO2-neutral LNG cargo was delivered to Europe in early April.
The offsets used were purchased from Shell’s global portfolio of nature-based projects, with Cheniere buying the portion attributable to estimated CO2e emissions related to activities prior to the FOB delivery point, including production and liquefaction.
Although Cheniere and other emitters on the Gulf Coast will be able to geologically bind their CO2 emissions in the not too distant future. Like it or not, the Gulf Coast is already moving forward …
Panther CO2 pipeline project on the Gulf Coast
– Uses existing 16-inch large diameter onshore and offshore pipelines
– Uses more than 13 acres of onshore site as needed for drainage, compression, pumping, etc.
– The CO2 flow capacity in the gas phase is estimated at 3-3.5 million tons per year (mta)
– Higher CO2 flow capacity available in dense phase (1,100+ psig)
–The northern terminus is very close to the Golden Pass LNG, Sempra PALNG and Cheniere LNG sites
–Possible connection to multiple onshore and offshore CO2 sequestration sites in Texas and Louisiana
–The Texas state’s water portion is located near two major offshore CO2 sequestration areas identified by the Bureau of Economic Geology (BEG) for the University of Texas at Austin (UT-Austin). The presented studies underline the productive CO2 storage potential for two separate offshore water bodies of the state of Texas, known as High Island Large Block 10 (HI 10L) and High Island Large Block 24 (HI 24L).
– Inexpensive and flexible transport tariffs through the use of existing assets
And on the middle continent
Carbon Capture Pipelines Provide Climate Aid; Activists cautious
BY STEPHEN GROVES
July 24, 2021
SIOUX FALLS, SD (AP) – Two companies looking to build thousands of miles of pipelines across the Midwest promise efforts will help rather than hinder the fight against climate change, although some environmental groups remain skeptical.
The pipelines would stretch from North Dakota to Illinois, potentially turning the Corn Belt into one of the world’s largest corridors for a technology called carbon capture and storage.
And even the People’s Republic of California …
Group led by Moniz presents CCS roadmap
A threatening question hangs over the 412,000 workers in California’s oil and gas industry: Will their jobs disappear if the state drives its breakthrough carbon-free energy transition by 2045?
One answer would be to create an entirely new industry in the state – capturing and underground storage of carbon dioxide emissions from gas-fired power plants and manufacturing plants, according to a report released yesterday.
The proposal to make California a center for the development of carbon capture and storage (CCS) was released yesterday by researchers at Stanford University and the Energy Futures Initiative, a think tank led by former Obama Administration Energy Secretary Ernest Moniz.
According to their plan, a significant portion of the state’s gas-fired power plants, flagged for disposal under the 2045 zero-carbon target, would remain on to support wind and solar generation – but their carbon emissions would be captured and over Pipelines transported underground are pumped. From that beginning, CCS could expand to remove CO2 emissions from other large California industries that also burn gas.
However, CCS is sharply opposed by some climate and clean energy activists who see it as a back door strategy for the oil and gas industry to hold a large chunk of future electricity generation to fuel the rise of wind and solar, electric vehicles and battery storage.