U.S. LNG company Cheniere Energy Inc. said Aug. 25 it temporarily suspended operations and evacuated personnel at its Sabine Pass LNG export terminal in Louisiana as Hurricane Laura churns toward the plant site.
Laura is expected to strengthen into a major Category 3 storm with maximum sustained winds of 115 miles per hour (185 kilometers per hour) before hitting the coast near the Texas-Louisiana border early Thursday, according to the U.S. National Hurricane Center.
Sabine Pass, in Louisiana near the border with Texas, is the biggest LNG export plant in the U.S.
RELATED:
Hurricane Laura Poses Biggest Threat to US Oil in 15 Years (Updated 3:11 p.m. CT Aug. 25)
Two other LNG export plants are located near where Laura is expected to make landfall.
Cameron LNG said it plans to run the Cameron plant in Louisiana at "a reduced rate with a ride-out team of essential operations personnel."
Freeport LNG, a little further from where the hurricane is expected to hit, said it also plans to operate its Freeport plant in Texas, noting that adjustments will be made if necessary.
The amount of pipeline gas flowing to U.S. LNG export plants was on track to fall to a two-week low of 4.1 Bcf/d on Aug. 25 as vessels carrying LNG steered clear of the hurricane.
On a monthly basis, however, higher gas prices in Europe and Asia caused U.S. LNG exports to rise in August for the first time in six months. U.S. exports had dropped as demand plunged during the coronavirus pandemic.
Pipeline gas flowing to the U.S. plants climbed to an average of 4.5 Bcf/d this month, according to Refinitiv, up from a 21-month low of 3.3 Bcf/d in July.
Gulf of Mexico oil production shutdowns, meanwhile, approached the level of 2005's Hurricane Katrina as coastal refiners scramble to cut processing ahead of Laura.
Recommended Reading
Some Payne, But Mostly Gain for H&P in Q4 2023
2024-01-31 - Helmerich & Payne’s revenue grew internationally and in North America but declined in the Gulf of Mexico compared to the previous quarter.
Kimmeridge Fast Forwards on SilverBow with Takeover Bid
2024-03-13 - Investment firm Kimmeridge Energy Management, which first asked for additional SilverBow Resources board seats, has followed up with a buyout offer. A deal would make a nearly 1 Bcfe/d Eagle Ford pureplay.
M4E Lithium Closes Funding for Brazilian Lithium Exploration
2024-03-15 - M4E’s financing package includes an equity investment, a royalty purchase and an option for a strategic offtake agreement.
Laredo Oil Subsidiary, Erehwon Enter Into Drilling Agreement with Texakoma
2024-03-14 - The agreement with Lustre Oil and Erehwon Oil & Gas would allow Texakoma to participate in the development of 7,375 net acres of mineral rights in Valley County, Montana.
California Resources Corp. Nominates Christian Kendall to Board of Directors
2024-03-21 - California Resources Corp. has nominated Christian Kendall, former president and CEO of Denbury, to serve on its board.