Thursday, March 25, 2010

Cheniere to Receive LNG Cargo

I was interested to see short article in the morning paper yesterday noting that Cheniere Energy's Sabine Pass LNG terminal will receive a cargo of Qatari natural gas.  The ship, which will arrive April 6, has a capacity of 211,885 cubic meters of LNG.  The snippet states that the ship's capacity represents about 7.8% of the daily U.S. gas production. 

Obviously that's not good news for an already oversupplied situation.  But what struck me as interesting was that the delivery itself was newsworthy.  It shows me how underutilized the terminal is.  Perhaps the greatest fear last year in the domestic gas market was the expected influx of LNG.  While worldwide export capacity has mushroomed, not as much as expected has ended up on our shores.  I can't say that trend will hold, but it's certainly good news for the domestic production industry so far.

7 comments:

Anonymous said...

Sorry Robert. Article is wrong on cargo or %, or both.

211,885/28.3=7,522.1 mcf=7,522,000 cf. USA production about 56 bcfd.

Robert Hutchinson said...

Conversions never were my thing. I double checked the article and that's what it said. Does your conversion consider regassification?

Anonymous said...

A cubic meter of LNG is ~21 mcf of gas. If it really was 211,885 cubic meters, that would be something like 4.4-4.5 bcf of gas.

Anonymous said...

As a former Cheniere employee I can attest that those numbers are right. The larger Qatari ships (called Q-Max) hold 4.5 Bcf of LNG and that would make domestic production roughly 55 - 60 Bcf/d, which is a good rough estimate.

Anonymous said...

Sorry Guys, but the article is wrong. I think the poster is correct that the LNG shipments carry a lot of gas. ONE cubic meter equal 35.32 cubic feet. So :

211,885 X 35.32= 7,483,778 cubic feet.

A little short of 4.5 Billion. I just think the article is wrong! You couldn't bring a tanker for 7MM cubic feet.

Anonymous said...

A cubic meter of LNG is equal to 614 cubic meters of regassed methane. That seems to be the factor that some folks are omitting from these calcs. Result is 614 x 35.3 equals 21.6 mcf gas per cubic meter of liquid, as anon said.

Robert Hutchinson said...

OK, since everyone is "Anonymous" and I'm too unmotivated to pull out a calculator on my vacation, I don't know who is right. For that matter, I don't know how many people are participating in this conversation. It could be one very confused person with multiple personalities as far as I can tell!

What ever happened to cute/funny/profane avatars and nicknames for comments? I'd give you nicknames myself but (again) I don't know how many people are participating.