Gas Flow to US LNG Terminals Rises

US LNG pipeline receipts rose 30% in August compared with July and averaged 4.3bn ft³/d before Hurricane Laura made landfall August 27, according to the US Energy Information Administration in its weekly report September 3.

LNG terminals exported six cargoes (three from Corpus Christi, two from Cove Point, and one from Elba Island) between August 27 and September 2, according to shipping data from Marine Traffic.

The surge coincided with rising demand in Asia. There is also some spare capacity in European storage for traders to capitalise on the winter gas price, and spot prices have been recovering at hubs there too. The Q1 2021 Dutch title transfer facility price has traded up some €2/MWh in the last month, from €12.365/MWh August 4 to €14.275/MWh September 3.

Two LNG export terminals – Sabine Pass and Cameron, which were in the direct path of the hurricane – have shut down operations. Since hurricane landfall, total US LNG pipeline receipts have declined to an average of 2.8bn ft³/d during the week August 27-September 2, according to the EIA.

Damage to electric transmission infrastructure near Cameron LNG could delay the restart of exports from the terminal for up to three weeks in September, EIA said citing power system operator Entergy from September 2.

Although both the Sabine Pass and Cameron terminals have not been able to load any cargoes since August 23, some loadings from Sabine Pass were re-routed to the Corpus Christi LNG terminal in Texas.

Elba Island in Georgia has loaded a cargo this month, the first one since January 2020. The facility consists of 10 small-scale moveable modular liquefaction system units with a combined capacity of 0.33bn ft³/d. Unit 1 became operational in October 2019, and units 2 through 9 were placed in service sequentially through July 2020. The last is expected to be placed in service this month.