Steel tariffs may disrupt future US crude, LNG exports
If trade balance is the goal of U.S. President Donald Trump's tariffs and quotas on imported products, crude oil and LNG exports could help him make the equation work, a panel of experts said at an energy conference in Washington, D.C. But a trade war, particularly one that raises the price of imported steel, will raise the cost of oil and gas production, pipelines and export terminals, making crude oil and LNG exports less competitive on the global market, they said.
Report: Dominion's Cove Point set to undergo maintenance shutdown in autumn
Dominion Energy Inc.'s Cove Point LNG production facility is scheduled for maintenance during autumn of 2018 and will be shut down for a few weeks, Reuters reported, citing Dominion CEO Thomas Farrell. LNG export interruption from the Maryland facility will depend on whether tanks with nearly 15 Bcf of storage capacity were exhausted, the report said, citing Farrell.
Petronas' involvement with Canadian LNG export project a win for stranded shale
Petroliam Nasional Berhad's deal for 25% of a planned Royal Dutch Shell PLC-led LNG export megaproject in British Columbia will provide an outlet for displaced western Canadian shale supplies while supporting a potential expansion of liquefaction facilities, according to experts.
Gas flows to Sabine Pass continued their decline in May
Natural gas flows to Cheniere Energy Inc.'s Sabine Pass LNG export terminal fell off from April to May, continuing a downward trend since they hit a record high of nearly 100 Bcf in March. Gas flows at Sabine Pass have been generally climbing over the last 12 months, despite the recent declines. On May 25, Cheniere received approval from the Federal Energy Regulatory Commission to introduce gas and start commissioning a fifth train. The train, expected to enter commercial service in 2019, will have an LNG production capacity of roughly 0.7 Bcf/d. The company also reached a milestone at its Corpus Christi LNG export terminal in May by reaching a final investment decision on a third train there.
US gas demand steady as power generation gas use ticks up amid warmer weather
Natural gas demand in the U.S. held steady in the week ended May 30 as supply increased slightly, the U.S. Energy Information Administration said in its May 31 "Natural Gas Weekly Update." Residential and commercial gas use dropped by 19%, or about 1.7 Bcf/d, compared with the previous report, the EIA said, citing PointLogic Energy data. Natural gas consumption for power generation increased by 7% as high temperatures in the South and Midwest areas increased electricity demand. Industrial-sector consumption fell by 1% after holding steady for the past three weeks.
