The global LNG market upheaval has wreaked havoc on U.S. LNG export demand this summer, which, in turn, has complicated operations at domestic export facilities. Gone are the days when U.S. LNG exports would move predictably, increasing with each new liquefaction train coming online and then mostly staying at or near capacity. Rather, as international LNG prices collapsed, U.S. LNG operators for the first time have had to contend with a relentless stream of cancelled cargoes and low facility utilization rates. More recently, cargo cancellations are showing signs of easing somewhat, as international price spreads are improving for fall and winter. But these recent market disruptions provide a window into the ways in which operational constraints and flexibilities will factor into LNG producers’ and offtakers’ decisions — and affect feedgas flows and capacity utilization — in a weak global market. Today, we consider some of the nuances of liquefaction operations.
(LNG) Interruption – How Will U.S. LNG Producers Navigate Global Market Uncertainty?
