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4 days ago
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US LNG output declines in May from April's record
By Curtis Williams HOUSTON (Reuters) -U.S. liquefied natural gas output fell in May due to plant outages and maintenance at the country's largest export facility, preliminary LSEG ship tracking data show. The U.S. is the world's largest LNG exporter and monthly changes in production can impact global LNG prices. In May the U.S. exported 8.9 million metric tons of LNG, down from a record 9.3 MT in April, according to LSEG data. During May all U.S. plants experienced short periods of lower output when compared to April, the LSEG data showed, and Cheniere Energy confirmed that its 30 MT per annum (mtpa) Sabine Pass facility in Texas, the biggest in the nation, was undergoing maintenance work. Gas flows to Sabine have held at a 23-month low of around 3.1 bcfd since May 31. That compares with an average of 4.3 bcfd over the prior seven days. Freeport LNG, the U.S.' third largest LNG producer, also reported several outages. Europe remained the favored market for U.S. LNG exports as traders tried to take advantage of higher prices in Europe for the superchilled gas when compared to Asia. Gas prices at the European benchmark Title Transfer Facility (TTF) in the Netherlands rose to $11.68 per million British thermal units (mmBtu) in May, up from $11.48 in April and an average of $10.12 in May 2024. Of the 8.9 MT of LNG exported from the U.S., 6.05 MT or 68% went to Europe, the same percentage as in April, LSEG data showed. Exports to Asia remained relatively low with 1.88 MT or 21% of total exports, compared to 2.05 MT or 22% of total exports in April, LSEG data showed. Stronger domestic production, pipeline imports, renewable generation and weak industrial demand have kept Chinese demand muted and China, the world's largest LNG user, continues to resell U.S. LNG to avoid paying retaliatory tariffs as the trade dispute continues between the world's two largest economies. Prices at the Asian benchmark Japan Korea Marker (JKM) slid to $11.83 per mmBtu in May, down from $12.23 in April but up from an average of $11.10 in May 2024. Exports to Latin America also fell with .66 MT sold in May compared to .68 MT in April. Egypt bought 3 cargoes for a total of .22 MT, while Bahrain bought one cargo for .07 MT. One cargo also left Cheniere's Sabine Pass plant on May 23, but as of Monday was in the Caribbean Sea with no clear destination, LSEG ship tracking data showed. The United States is poised to remain the world's largest LNG exporter with an expected 6 projects getting the financial go ahead in 2025, adding another 90 million metric tons per annum (mtpa) of LNG to the U.S. output by 2030. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
29-04-2025
- Business
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Exclusive-Malaysia's Petronas and Commonwealth LNG in talks for term supply, say sources
By Marwa Rashad, Curtis Williams and Emily Chow (Reuters) - Malaysian state-owned oil and gas firm Petroliam Nasional, or Petronas, is in talks with Commonwealth LNG to buy liquefied natural gas from the U.S. company's facility in Cameron, Louisiana, according to four trading and industry sources with knowledge of the matter. Petronas is in talks to buy at least one million metric tons per annum (mtpa) of LNG from Commonwealth LNG, said two of the four sources, who declined to be identified as they were not authorised to speak to the media. "Talks are at an advanced stage for at least 1 mtpa," said one of the sources. Several Asian countries plan to increase their contractual purchases of U.S. LNG to reduce the trade imbalance with the United States and escape high reciprocal tariffs. Petronas has previously mentioned its key focus area of expanding its global LNG portfolio to meet growing demand, and that its supply from some U.S. contracts could be sold in the spot market to Europe or Asia. Commonwealth LNG and Petronas did not respond to a Reuters request for comment. Commonwealth LNG is developing a 9.5 mtpa LNG plant in Cameron, Louisiana. It received its export license from the U.S. Department of Energy in February having waited almost two years for it under the Biden administration. Commonwealth said it has seen an increase in interest from prospective buyers since securing its export license. The project currently has almost 8 mtpa of its supply either under contract or under consideration, including 2.5 mtpa with Woodside Energy and 2 mtpa with Private equity firm Kimmeridge, which acquired a 90% stake in Commonwealth LNG. Petronas has 20-year deals for 1 mtpa of LNG from Venture Global's Plaquemines facility and 1.1 mtpa with Cheniere Energy. In December, Petronas had also signed a 15-year deal with ADNOC for 1 mtpa of LNG, with deliveries expected to start in 2028. Sign in to access your portfolio
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16-04-2025
- Business
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BP begins loading its first LNG cargo from Venture Global's Calcasieu Pass plant
By Curtis Williams (Reuters) - BP Plc (BP) will begin loading its first shipment of liquefied natural gas from Venture Global's (VG) Calcasieu Pass plant in Louisiana on Wednesday, according to LSEG data. The BP-chartered vessel British Mentor was about to dock at the Calcasieu Pass port. It is the first cargo BP is receiving from the export facility under its supply contract, more than three years after Venture Global started selling LNG from the plant on the spot market. Galp Energia said earlier on Wednesday that it had lifted its first cargo from Calcasieu Pass, signaling the start of the 20-year supply agreement signed in 2018 for 1 million tonnes per annum of LNG from the plant. Galp's cargo was loaded onto the Gaslog Wellington, LSEG data showed. The two cargos are the first since Venture Global finished commissioning Calcasieu Pass on April 15. Shares of Venture Global jumped more than 10% in early afternoon trading. Venture Global is the second largest LNG producer in the U.S. and has helped make the U.S. the world's largest exporter of the supercooled gas. Venture Global's years-long delay in providing cargoes to contracted customers of the Calcasieu Pass led to a contentious battle with companies including BP, Galp, Shell, Orlen, Edison and Repsol. They accused Venture Global of dragging its feet to commission the plant so it could profit from higher spot prices. Venture Global has blamed the global pandemic, two hurricanes and a force majeure event triggered by issues with the facility's power island for the extended commissioning. Commissioning, or making sure a new plant's systems are functioning as designed, takes just months at many LNG facilities.
Yahoo
15-04-2025
- Business
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Venture Global LNG starts commercial operations at Calcasieu Pass plant
By Curtis Williams HOUSTON (Reuters) - Venture Global LNG has begun commercial operations at its Calcasieu Pass plant in Louisiana, ending a more than a three-year commissioning process at the plant, the company said on Tuesday. Venture Global will now sell LNG to its long-term customers at lower prices rather than test cargoes to the highest bidders in the red-hot global market. Just a startup five years ago, Venture Global is the country's second-largest LNG producer, helping the U.S. lead the world in LNG exports. Commissioning, or making sure a new plant's systems are functioning as designed, takes months at many LNG facilities but the process dragged on at Calcasieu Pass due to several unforeseen circumstances. These included the global pandemic, two hurricanes, and a force majeure event triggered by issues with the facility's power island, the company based in Arlington, Virginia, said on Tuesday. "Having completed a multi-year rectification and remediation of key components of the facility that underpin the redundancy features inherent in the project's design, Calcasieu Pass is now ready to operate safely and reliably," Venture Global said in a statement. Shell, BP, Orlen, Edison and Repsol filed arbitration claims saying Venture Global LNG deliberately failed to fulfill their supply contracts, dragging its feet to commission the plant so it could profit from higher spot prices. Venture Global argued that a faulty power system delayed normal operations. The Gaslog Wellington tanker is the first vessel to receive LNG from the Calcasieu Pass plant and was at its port loading 170,000 cubic meters of the supercooled gas, according to LSEG cargo flows. It was not immediately clear which of Venture Global's long-term customers would get the first shipment but Orlen has said it expects its first cargo on April 23, with Shell expected to receive its cargo at the end of the month, a person familiar with Shell's timeline told Reuters. Shell and BP declined to comment. Venture Global's stock price was down by 1%, at $8.38 in late-afternoon trading. It has declined by 66% since the company went public in January. The move to commercial operations is unlikely to stop ongoing arbitration cases brought by the long-term customers against Venture Global as Shell, Orlen and Repsol have all said they will pursue their legal battle with Venture Global even after they start receiving cargoes. Venture Global is also likely to keep profiting from strong global spot market prices, as its newer and larger Plaquemines facility ramps up production. Sign in to access your portfolio
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10-04-2025
- Business
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Analysis-New LNG plant to boost Venture Global profits as Calcasieu serves long-term customers
By Curtis Williams HOUSTON (Reuters) - Venture Global Inc is about to start selling liquefied natural gas cargoes from a Louisiana export terminal to long-term customers rather than to the highest global bidder, but it plans to employ the controversial but lucrative practice at a new and bigger terminal that it is starting up. On April 15, Venture Global will finally complete commissioning its Calcasieu Pass facility in Louisiana, which binds it to contractual obligations it signed while developing the facility. Commissioning, or making sure a new plant's systems are functioning as designed, takes months at many LNG facilities. It took three years at Calcasieu Pass, allowing Venture Global to sell large test cargoes to high bidders on the red-hot global market instead of to customers whose contracts called for them to pay less. Shell, BP, Orlen, Edison and Repsol have filed arbitration claims saying Venture Global deliberately failed to fulfill their supply contracts, dragging its feet to commission the plant so it could profit from higher spot prices. Venture Global argued that a faulty power system delayed normal operations. With commissioning of Calcasieu Pass imminent, Venture Global's newer and larger Plaquemines LNG plant is ramping up production for the lucrative spot market. It started producing in mid-December. Venture Global says it will commission the plant in two-year phases, a timetable analysts say will boost its profit outlook. "We still expect the vast majority of sales will be done on the spot market in 2025" for Venture Global, said Adam Baker, an energy analyst at research firm Morningstar. Plaquemines is now producing at 140% of design capacity and in three months has already sold 29 cargoes at an average liquefaction fee of $7.26 per million British thermal units (mmBtu), according to an SEC filing last Thursday. "One can reasonably see the company's overall revenue increasing from LNG sales on the spot market from Plaquemines, and some revenue from Calcasieu Pass", said Jason Feer, Poten and Partners' business intelligence chief. Venture Global's revenues from LNG should double to $9.98 billion in 2025 from $4.972 last year, and keep growing through 2029 on larger volumes and strong prices, investment bank UBS said in a note to its clients last Friday. The company expects to sell 550 cargoes on the spot market during the commissioning period from Plaquemines, with a margin of $5 to $6 a mmBtu, generating between $10 and $12 billion, UBS told investors. Exxon Mobil, Chevron, and Orlen are among contracted customers for LNG supply from the Plaquemines facility but did not respond to a request for comment. Shell, which also has 2 MTPA in Plaquemines, declined comment. A person familiar with the company's position told Reuters Shell was bracing for another long commissioning period and possible delays in receiving its LNG. Venture Global did not immediately comment. Venture Global is the second largest U.S. LNG exporter behind Cheniere. Export sales boomed for both as the U.S. became the world's largest global supplier of the supercooled gas following Russia's invasion of Ukraine. CALCASIEU LEGAL FIGHT Venture Global earned more than $19 billion from LNG sales on the spot market over the past three years, almost entirely from its Calcasieu Pass facility, SEC filings show. That terminal's margins will shrink starting April 15, when it will start supplying long-term customers. Contracted liquefaction fees at Calcasieu Pass are among the lowest on the Gulf Coast at around $1.75 per million British thermal unit (mmBtu), two people familiar with the agreements told Reuters. Venture Global warned investors in its initial public offering that revenue from Calcasieu Pass will fall when it moves to commercial operations. Contracted customers have waited years to access the lower-cost cargoes. But Shell, Orlen and Repsol have all said they will continue their legal battle with Venture Global even after they start receiving cargoes. "We hope to be able to have some readout from the arbitration in the coming months, hopefully, this year," said Shell's CEO Wael Sawan last month at the company's Capital Market's Day in New York. Orlen's Chief Financial Officer Magdalena Bartoś and Repsol's CEO also confirmed in separate earning calls last month that their companies were continuing the arbitration process. Orlen, which has contracted 2 MTPA from Calcasieu Pass, said it expects its first cargo from the facility on April 23. Repsol plans to trade the low-priced LNG from Calcasieu and resell it in Europe or Asia if the prices are right, CEO Josu Jon Imaz said during the company's earnings call last month. Calcasieu "is a quite competitive LNG plant in cost terms, probably one of the best of the Gulf," Imaz said. Shell also intends to sell its contracted LNG supplies from Calcasieu, a Shell source told Reuters. Sign in to access your portfolio
