First Look: Cheniere expects reduced maintenance outages at Sabine Pass, Corpus Christi LNG terminals
May 07, 2024
Oil is trading lower, around $78, reversing some gains from yesterday
There were reports of a successful ceasefire negotiation yesterday between Israel and Hamas; however, Israel has rejected the proposal and will continue with its planned operation in Rafah
Reuters reported that some Asian refiners are considering reducing throughput in the coming months due to weak refining margins
OPEC could extend supply cuts (Reuters)
According to Reuters, three sources from OPEC countries participating in the voluntary cuts said that an extension through the end of the year if demand does not pick up
OPEC will meet next on June 1 to decide the future of their supply policy, as the current supply cuts are set to last through June
OPEC+ is currently curtailing output by 5.86 MMBbl/d, or 5.7% of global supply, in an attempt to keep the market balanced and prevent oversupply
Energy Aspects said, "We think there's a good chance that OPEC+ will extend beyond June - but we aren't yet putting a firm view because we don't think they've actually got into the real period of discussion and decision-making,"
It is also possible that only some of the cuts are kept in place while some barrels are returned to the market
Natural gas prices trade modestly lower amid ongoing spring pipeline maintenance
June ’24 Henry Hub is down -0.9c this morning to trade around $2.186/MMBtu
The Summer ’24 strip is down 1.2c to $2.483 and Winter ‘24/’25 strip is down 0.4c to $3.470
Today's Euro Ensemble indicates regional changes were offset across the Lower 48. In the Southeast/South Central, the model verified yesterday's warmer forecast. The 00z model is consistent with its previous run, maintaining early cooling and late warming (Criterion)
Additionally, On May 1, a rupture occurred during hydrostatic testing of the Mountain Valley Pipeline, potentially delaying its operational start (S&P Global)
Targa looks past gas price volatility, plans infrastructure for rising Permian production (Criterion)
Targa reported record gathering and processing volumes in the Permian Basin at 5.395 Bcf/d during Q1 2024 and is developing over 1 Bcf/d of new processing capacity in the coming years
Construction is ongoing for the 275 MMcf/d Greenwood II plant in the Permian Midland, alongside the 230 MMcf/d Roadrunner II and 275 MMcf/d Bull Moose plants in the Permian Delaware
Targa plans to build a new 275 MMcf/d Permian Midland gas plant, Pembrook II, expected to start operations in Q4 2025, in response to customer demand in the region
On the liquids side, the company started operations for the 120 Mboe/d Train 9 fractionator in Mont Belvieu, Texas, and is constructing the 120 Mboe/d Train 10 fractionator while planning a 150 Mboe/d Train 11 for Q3 2026
Cheniere expects reduced maintenance outages at Sabine Pass, Corpus Christi LNG terminals (S&P Global)
Cheniere CEO Jack Fusco said on May 3 that no extended summer outages are expected at the Sabine Pass and Corpus Christi LNG terminals this year, noting, "We do not anticipate a long outage like we executed in June last year"
Cheniere expects to produce 45 Mtpa in 2024, focusing on remaining maintenance in Q2 and Q3, impacting global LNG supply due to reduced production in other regions
Previous major maintenance at Sabine Pass lasted 20-30 days in 2023 as part of a six-year cycle, and recent outages at Freeport and Cameron LNG have impacted US LNG feedgas demand, which is hovering around 12 Bcf/d
Furthermore, Corpus Christi's 10 Mtpa expansion remains on track for its first LNG by late 2024 and full completion by 2026
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