Monday, September 7, 2009

LNG Loads Coming

The Houston Chronicle had a good, short article on the LNG industry and the status of shipments arriving on our shores from overseas.  The article reported that Cheniere Energy's Sabine Terminal received a shipment from BP last week and expects another this week.  The Trunkline LNG terminal in Lake Charles, LA is expecting up to three shipments in the coming weeks.

That's a lot of gas, billions of cubic feet, arriving in a pricing market that has cratered and a storage market that is overflowing.  Some of that gas might be stored temporarily and redirected overseas, as Sabine has received governmental approval to "U-turn" shipments it receives.  The rest of it likely will go to storage, which won't help gas prices and might just cause domestic producers to curtail production that much sooner.

It's a good article and a quick read.

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