Cameron LNG begins shutdown as Hurricane Laura intensifies near US Gulf Coast

Houston — Sempra Energy's Cameron LNG began temporarily shutting down the southwest Louisiana facility Aug. 26, a day after Cheniere Energy took similar action at its nearby Sabine Pass export facility, as Hurricane Laura neared the US Gulf Coast with the possibility of exacting catastrophic damage to onshore infrastructure.

A small group of essential staff would remain behind at Cameron LNG in case of an emergency, spokeswoman Anya McInnis said in an e-mailed statement responding to questions. The operator had chosen to cut production Aug. 25 rather than shut the facility then, but took the additional step after the storm intensified overnight.

Gas deliveries to the six major US LNG export facilities plunged to over an 18 month low Aug. 26, S&P Global Platts Analytics data showed. A key feedgas pipeline to Sabine Pass declared a force majeure due to the facility's temporary suspension of operations. In Texas, as of midday, Freeport LNG, south of Houston, planned to continue operations through the storm, spokeswoman Heather Browne said.

Pilot service was suspended to vessels through the channel serving Sabine Pass and through the channel serving Cameron LNG, according to advisories that shipping services issued to customers. No LNG tankers were loading at either facility, and no tankers appeared to be heading into the area by midday, Platts vessel-tracking software cFlow showed Aug. 26.

Further out in the Gulf of Mexico, several unladen LNG tankers were positioned. These were the Soshu Maru, LNG Juno, Singapore Energy and Gaslog Shanghai. Another vessel, Bonito LNG, was in a holding pattern off the Mexican coast.

The price impact from delayed cargo loadings was not expected to have a significant impact on Atlantic supply availability or prompt prices, according to market sources. This is because of lower-than-normal capacity utilization and loading rates across USGC projects, which have had significant levels of cancellations for July and August loading.

"I'm hearing a couple of [US Gulf Coast] loadings impacted by Laura, but think it's only minor impact," said a trader with a European portfolio player.

The rate of tanker loadings from the US averaged about 3.28 Bcf/d or just under one cargo per day, compared to levels seen in March of 7.3 Bcf/d or more than two cargoes per day, Platts Analytics data showed.

With possible winds of up to 145 mph when it makes landfall on the Texas-Louisiana border late Aug. 26 or early Aug. 27, Laura could cause "catastrophic damage" due to "unsurvivable storm surge with large and destructive waves," according to the latest National Hurricane Center bulletin. Widespread flooding was expected.