?An unprecedented bubble of new LNG production is less than a year away, says Steve Johnson, president, Waterborne Energy Inc. The Houston-based consulting group specializes in LNG markets. The dynamics of the global LNG market are about to change, he says: “Ten new trains will be producing LNG, most well before the end of 2009.”
When all of the new trains come online, a staggering 222 billion cubic feet (Bcf) per month of nameplate capacity will be introduced into the global market.
The result? A surge in U.S. imports of LNG is likely.
The timings of four trains in particular bear watching: in Qatar, Qatargas’ Megatrain 4 and RasGas’ Train 6 are scheduled to start making LNG in February and March 2009, respectively. Indonesia’s Tangguh Train 1 is projected to be ready at the close of this year, and Russia’s Sakhalin Train 1 should be online in March 2009. Additionally, Nigeria’s Train 6, which is already fully commissioned, should resolve its upstream supply issues in the next few months.
“Given the rather abysmal track record of liquefaction project delays, none of the dates are set it stone, but there is tremendous incentive and pressure to commission these facilities,” says Johnson.
If projections hold true, 101 Bcf per month could be pumped into world markets by the close of March 2009, in time to have a significant impact on 2009 import levels in the U.S. It’s possible that LNG volumes could surge to more than 900 Bcf next year.
—Peggy Williams
Recommended Reading
Diamondback to Sell $2.2B in Shares Held by Endeavor Stockholders
2024-09-20 - Diamondback Energy, which closed its $26 billion merger with Endeavor Energy Resources on Sept. 13, said the gross proceeds from the share’s sale will be approximately $2.2 billion.
Optimizing Direct Air Capture Similar to Recovering Spilled Wine
2024-09-20 - Direct air capture technologies are technically and financially challenging, but efforts are underway to change that.
Analyst: Is Jerry Jones Making a Run to Take Comstock Private?
2024-09-20 - After buying more than 13.4 million Comstock shares in August, analysts wonder if Dallas Cowboys owner Jerry Jones might split the tackles and run downhill toward a go-private buyout of the Haynesville Shale gas producer.
Matador Offers $750 Million in Senior Notes Following Ameredev Deal
2024-09-20 - Matador Resources will offer $750 million in senior notes following the close of its $1.83 billion Ameredev II acquisition.
Aethon, Murphy Refinance Debt as Fed Slashes Interest Rates
2024-09-20 - The E&Ps expect to issue new notes toward redeeming a combined $1.6 billion of existing debt, while the debt-pricing guide—the Fed funds rate—was cut on Sept. 18 from 5.5% to 5%.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.