Daily GPI / Infrastructure / NGI The Weekly Gas Market Report / Liquefied Natural Gas (LNG) / NGI All News Access

Sabine Pass LNG Exports Reached New High in February

Sabine Pass Liquefaction LLC sent out 15 liquefied natural gas (LNG) cargos from its terminal in Louisiana during February, according to the latest data available from the U.S. Department of Energy (DOE).

During February, cargos were sent to Portugal, Spain, Turkey, India, Mexico, China, Chile, Kuwait, Jordan and Japan. Four of the cargos were sent under short-term agreements, according to DOE’s LNG Monthly for February, which was published last Friday.

During January the terminal sent out 15 cargos with one of these being sent under a short-term agreement, according to the previous LNG Monthly.

According to DOE’s latest report, February exports by vessel totaled 52 Bcf, a new high since exports from the Lower 48 states began when Cheniere Energy’s Sabine Pass terminal entered commercial operation in February 2016. January exports by vessel totaled 51.2 Bcf, the previous high. Exports have been climbing since last November when they were 32.9 Bcf.

No cargos of previously imported LNG have been re-exported by vessel from the United States since August 2016 when 0.8 Bcf was re-exported.

“The current soft LNG market and fears of an impending ‘glut’ has created lowered price expectations, demands for increased contract flexibility and uncertainty over future LNG contract price formation mechanisms -- especially in the dominant Asian importing markets,” Oxford Institute For Energy Studies researcher Howard Rogers said in a note published earlier this month.

“As the market rebalances, new supply projects will need an expectation of price levels which remunerate full-cycle investment. This may take some while to mature, given the recent apparent lack of enthusiasm for an offer of a fixed-price $8/MMBtu for delivered LNG from 2023 from Tellurian Inc.”

*The original version of this story included an inaccurate count of the number of cargos sent from the Louisiana liquefied natural gas export terminal during January and February, as it failed to account for cargos with multiple destinations or contract terms. During each month 15 cargos were sent from the terminal. NGI regrets the error.

Recent Articles by Joe Fisher