ChemAg15 said:

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Woke up this morning to $6.25 natural gas. How high does this go? Seems like Europe is driving this.

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ChemAg15 said:

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Woke up this morning to $6.25 natural gas. How high does this go? Seems like Europe is driving this.

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BMach said:

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So the question is, who has extra capacity that they aren't utilizing? May be easier to acquire a competitor with extra capacity than get permits changed?

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Jdrexgman said:

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Calcasieu Pass won't ramp up to full operations until after this winter.

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Dr. Doctor said:

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For those asking about LNG (US GC assets) selling extra gas...

They might not be able to. I've been working with a couple of LNG guys and the bigger issue is FERC allows you to draw a yearly rate, divided by 365. If you don't pull your rate for that day, you might be able to go a little higher the next day, but essentially it is a "use it or lose it" number.

So to increase the amount you could make, you need to ask FERC (and PHSMA, however you spell it) for permission to increase your yearly rate (which in turn affects your daily rate).

So if your site can process 85 MMSCFD of gas, that's actually 31.025 BCF/a. You go down for 3 days because of a refrigerant compressor seal, you just lost out on a tanker (or 2) of LNG.

And unlike other O&G facilities, you have to go back for federal approval to increase production. For example, if you have space on your environmental permit and want to produce more NH3 (ammonia), you can. Assume your equipment can handle it. No additional approvals needed (as was the case with a previous client as well). They went from 100% to 110% after doing a performance test. But if Cheniere wants to go to 110% of their daily rate, they can't. Unless they have approval from FERC.

~egon

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Jdrexgman said:

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BMach said:

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So the question is, who has extra capacity that they aren't utilizing? May be easier to acquire a competitor with extra capacity than get permits changed?

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All of the domestic LNG export facilities are maxed out and will continue to be so until you start to see crazy demand destruction here in the US which could be something like a sustained +$10 HH pricing. The only extra capacity come online in the near term is Sabine Pass Train 6 which is ramping up as we speak.

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Sea Speed said:

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Jdrexgman said:

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Calcasieu Pass won't ramp up to full operations until after this winter.

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Ok, i thought there were some ships loading there starting october and then ramping up from there. bummer it wont be going full bore until after the new year. I have heard that 100-200 ships a year might load there. that is gonna be great for that port.

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Jdrexgman said:

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Calcasieu Pass won't ramp up to full operations until after this winter.

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Skillet Shot said:

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Jdrexgman said:

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Calcasieu Pass won't ramp up to full operations until after this winter.

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With the looming global energy crisis, at what point do we start considering limiting LNG exports? I know there is still a lot of gas out there that becomes economical at higher gas prices, but most of the core shale fields have been drilled up and our on a steady decline. We aren't anywhere close to being able to rely on renewables and no administration is considering nuclear unfortunately.

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