Updated Aug 22, 2024
8/22/24
Construction of Sempra Infrastructure’s Energía Costa Azul (ECA) LNG Phase 1 in Mexico has hit a snag due to what the San Diego, CA-based company called labor and productivity challenges.
June Nymex natural gas futures fluctuated on either side of unchanged early Tuesday and ultimately closed on the plus side as traders positioned ahead of the contract’s Wednesday expiration with fundamentals supporting.
Asian buyers are seeking more LNG spot cargoes and shoring up long-term supply while Europe awaits the impacts from further cuts of Russian natural gas imports and global terminal outages.
Natural gas futures were gaining back a modest chunk of their pre-holiday losses through midday trading Tuesday, supported by warm-leaning forecasts and strengthening export demand.
The U.S. Energy Information Administration (EIA) on Thursday reported an injection of 70 Bcf natural gas into storage for the week ended May 10. The result was a miss against expectations and historical averages.
Amid signs of ongoing issues at a major U.S. LNG export terminal, and with physical market prices pointing to weak near-term fundamentals, natural gas futures were headed for heavy losses as of midday trading Wednesday.
NO. 1: Feed gas deliveries to U.S. LNG export plants ticked back up on Thursday after recent downturns as maintenance season gets underway. Overall, U.S. feed gas demand was nominated at 10.8 Bcf, up 5% from Wednesday.
While U.S. LNG developers navigate the fallout of a pause in new worldwide liquefied natural gas export authorizations, Sempra Infrastructure executives said they were still focusing on the best prices and partnerships, rather than permitting timelines.
Sempra is betting that continued global energy volatility and geopolitical tensions will strengthen North America’s key natural gas markets, supporting its investments in LNG exports and Mexico.
Sempra Infrastructure has joined a partnership of Japanese gas utilities and major industrial groups studying the potential of using Gulf Coast LNG terminals to create an export hub for low-carbon, natural gas-backed fuels.