First Look: Golden Pass faces new hitch as contractors pause work
May 09, 2024
Oil is trading higher, near $79.50, extending gains from yesterday
The US Department of Energy increased its SPR purchase price from $79/Bbl to $79.99/Bbl
Russia’s crude production exceeded its pledged OPEC quota in March by about 319 MBbl/d
Canadian oil sands production to rise 15% by 2030 (Reuters)
A recent report by S&P Global estimates that output from the oil sands in Canada will rise to 3.8 MMBbl/d by 2030, an increase of about 15%
Production has risen 1.3 MMBbl/d over the past ten years to its current level of 3.3 MMBbl/d
Canada is currently the world's fourth-largest oil producer, with two-thirds coming from Alberta’s oil sands
Growth may be limited by takeaway capacity in the next few years, as the Transmountain Pipeline expansion is expected to fill to capacity around 2026
Natural gas prices trade higher ahead of storage report
June ’24 Henry Hub is up 2c this morning to trade around $2.207/MMBtu
The Summer ’24 strip is up 0.4c to $2.499 and Winter ‘24/’25 strip is down 3c to $3.404
Lower production, along with seasonally changing weather patterns and anticipated return of LNG feed gas demand, continues to support price
Today's Euro Ensemble indicates cooler temperatures in the 11-15 day period, balanced by warmth in the 1-15 day range, ultimately having minimal impact on the pattern
Golden Pass faces new hitch as contractors pause work (Bloomberg)
The Golden Pass LNG project in Texas, jointly owned by QatarEnergy and Exxon Mobil Corp., encounters further delays as Zachry Group halts worker attendance due to a fuel shortage
Zachry, handling construction and engineering, informed hourly employees and subcontractors through an email dated May 8 not to return until further notice, without detailing the fuel shortage cause
Previous setbacks include a shortage of specialized workers and construction issues, potentially pushing the project's start from 1H 2025 to the second half of 2025 or later
Further delays could tighten the global LNG supply by 2025, affecting prices in Europe and Asia, and delay a potential increase in U.S. gas exports
New Fortress Energy expecting first LNG from Altamira FLNG 1 later this month (Criterion)
New Fortress Energy's 1Q24 update reveals that the Altamira FLNG 1 unit is mechanically complete, with commissioning underway and first LNG production expected in late May
The first full LNG cargo is anticipated to be shipped in June from this floating liquefaction facility, which has a design capacity of 1.4 MTPA, equivalent to around 184 MMcf/d of gas
New Fortress Energy will source gas volumes from TC Energy's Sur de Texas Pipeline, which transports U.S. natural gas
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