U.S. natural gas futures rise near 2% as output falls ahead of Hurricane Sally
U.S. natural gas futures rose near 2% as LNG exports continued to rise and output dipped as Gulf Coast producers shut some production before Hurricane Sally smashes into the Gulf Coast. Sally is expected to hit near the Louisiana-Mississippi border early on Tuesday. Entergy Corp , the biggest power company in Louisiana and Mississippi, still has about 50,000 customers without service from Hurricane Laura in southwestern Louisiana since late August.
After falling to a four-week low last week, front-month gas futures rose 4.1 cents, or 1.8%, to settle at $2.310 per million British thermal units. Data provider Refinitiv said output in the Lower 48 U.S. states was on track to slide to a two-week low of 86.1 billion cubic feet per day on Monday due to a near 1-billion-cubic-feet-per-day (bcfd) decline in the Gulf Coast. Traders noted futures rose despite a decline in overall demand as the weather turns mild. Refinitiv projected demand, including exports, would slide from 85.3 bcfd this week to 82.4 bcfd next week.
The amount of gas flowing to U.S. LNG export plants, meanwhile, was on track to average 5.1 bcfd in September. That is the most in a month since May and up for a second month in a row for the first time since hitting a record high of 8.7 bcfd in February. The LNG-export gain comes as Cheniere Energy Inc's Sabine Pass in Louisiana ramps up after shutting in late August for Hurricane Laura and as global gas prices rise, making U.S. gas more attractive in Europe and Asia following months of U.S. cargo cancellations due to coronavirus demand destruction. Cameron LNG's export plant in Louisiana, however, has remained shut since Aug. 27 due to lingering power outages from Laura. Some analysts say the plant could remain shut through mid October.
The quest for plant availability: Achieving improved compressor reliability and efficiency in downstream operations
Plants in the downstream industry require a great degree of operational availability, equipment reliability and efficiency: These factors are crucial for end users, as thousands of complex and intricate processes are operating in parallel – many of them are driven and safeguarded by compression technologies.
Uniformly, reliability is a universal maxim, and this holds particularly true for handling and compressing challenging gases processed in such plants. In fact, there is a direct, vital link between the reliability of compressor equipment designed for and used in these processes and the availability of the plant.
With a focus on different chemical/petrochemical, syngas and LNG applications our speaker Ulrich Schmitz will introduce to the listeners how centrifugal compression technologies such as integrally geared can be designed and employed reliably to perform the key process challenges of the industry, while also contributing to an efficient operation.
September 24, 2020 10:00 AM CDT