Gulf hurricanes cut liquefied gas production by 30%
The volume of natural gas flowing to LNG giant Cheniere Energy's Corpus Christi export facility in Texas was declining by nearly 30 percent on Wednesday, a day after Tropical Storm Harold struck south Texas.
Gas volumes flowing into Corpus were on track to drop to around 42mcm a day on Wednesday from 60mcm earlier, according to data from Refinitiv . At full capacity, the Corpus Christi LNG Export Facility's three liquefaction trains are capable of cooling 63 million cubic meters of natural gas into LNG, enough to supply 12 million US homes.
Although Cheniere officials declined to comment on the plant's operations, a report by Enverus Intelligence Research (EIR), an Enverus subsidiary, provided estimates that if a hurricane hits the Gulf of Mexico, about 40 percent of the oil and gas production would be destroyed. it is estimated that a medium impact case would shut down and take seven days to recover, while a high impact case would shut down up to 90% of production and take 16 days to recover.
While Tropical Storm Hilary is gradually weakening, it continues to inundate parts of Mexico, California, and the southwestern United States.
In the more positive news, Cheniere has struck a deal with Germany's BAS F to supply the chemical giant with 0.8 million tonnes per year (mtpa) of LNG. The deal with BASF is one of several long-term supply deals Cheniere has signed so far this year.
In June, Cheniere signed a long-term LNG sale and purchase agreement with China's ENN Energy Holdings. Under the terms of the agreement, ENN will purchase approximately 1.8 million tonnes/year of LNG on a FOB basis at Henry Hub prices over a 20-year period, with deliveries commencing in mid-2026 of up to 0.9 million tons. per year (mtpa) in 2027. Cheniere also entered into another LNG purchase and sale agreement with Norway's Equinor ASA (NYSE:EQNR) which will see the Norwegian national oil company purchase 1.75 million tonnes/year of LNG free of charge. pension for a purchase price indexed to the Henry Hub price, for a term of 15 years.
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The article Gulf hurricanes cut liquefied gas production by 30% comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/gli-uragani-nel-golfo-tagliano-la-produzione-di-gas-liquefatto-del-30/ on Thu, 24 Aug 2023 08:00:49 +0000.