Cameron LNG train to resume service as scheduled maintenance at US facility ends: company

Sempra Energy's Cameron LNG export terminal in Louisiana planned to return a train to service July 13 that was down for scheduled maintenance, the operator said.

A return to normal production levels was expected, spokeswoman Anya McInnis said in an email responding to questions.

That should boost US feedgas demand, at a time when strong global pricing, especially in Asia, continues to incentivize near full dispatch of US LNG exports. The S&P Global Platts JKM – the benchmark for spot-traded LNG delivered to Northeast Asia -- for August was assessed July 13 at $13.288/MMBtu.

Feedgas deliveries to Cameron LNG totaled 1.4 Bcf/d, down from 1.9 Bcf/d a week earlier before the work began, Platts Analytics data show. The facility in Hackberry, south of Lake Charles, operates three trains.

Total deliveries to the six major US liquefaction facilities registered 10.4 Bcf/d on July 13, down from 11.1 Bcf/d a week earlier. The difference was almost entirely attributable to the decline at Cameron LNG. Feedgas deliveries to Kinder Morgan's Elba Liquefaction in Georgia – the smallest of the US LNG facilities -- was down July 13 compared with a week earlier, by about 60 MMcf/d. Deliveries to Freeport LNG in Texas were also down slightly from a week earlier.

US Gulf Coast LNG netbacks strongly favor the JKM through the balance of summer. That should encourage record trade flows from the Atlantic Basin to the Pacific Basin.

The dynamics have been fueled in part by persistent Chinese import strength, strong power-sector driven LNG demand in South Korea, and flat Asian LNG supply year on year. Latin America represents another source of strong LNG demand, Platts Analytica data shows.

How the strong market fundamentals are benefitting the bottom line for US exporters will become clearer in the weeks ahead as those facilities that are operated by publicly-traded companies report financial results for the April-June quarter.

Later this year, Venture Global's Calcasieu Pass terminal in Louisiana and the sixth liquefaction train at Cheniere Energy's Sabine Pass liquefaction terminal in Louisiana are expected to begin production – about a year earlier than originally planned for both.