Sabine Cross LNG feedgas deliveries drop amid upstream pipeline upkeep

Sabine Cross feedgas deliveries fell to 4.05 Bcf Oct. 3

Fuel deliveries to KMLP via Texas Fuel slashed to zero

Feedgas deliveries to Cheniere’s Sabine Cross LNG have fallen almost 1 Bcf because the begin of October, amid deliberate upkeep limiting pure fuel deliveries to one of many export facility’s key provide pipelines.

Pipeline nomination knowledge reveals whole fuel deliveries to Sabine Cross dropped to 4.05 Bcf Oct. 3, down 18% from 4.93 Bcf Oct. 1. A pointy drop in receipts from Kinder Morgan Louisiana Pipeline accounted for the majority of the lower, with flows falling to round 854 MMcf Oct. 3 from 1.42 Bcf Oct. 1.

The lower in flows on KMLP will be traced again partly to decrease inflows onto the pipeline from Texas Fuel Transmission.

Pipeline upkeep

Texas Fuel Transmission, a subsidiary of Boardwalk Power Companions, has two deliberate pipeline upkeep tasks which may be limiting flows to KMLP, which plunged to zero Oct. 3.

The primary upkeep undertaking entails Texas Fuel’ Columbia Compressor Station in northeast Louisiana and started Sept. 22. Pipeline nomination knowledge reveals that this undertaking had an instantaneous impact on deliveries to Kinder Morgan at Eunice, slicing deliveries to round 65 MMcf/d for Sept. 23-Oct. 2, down from 210 MMcf/d for Sept. 1-22. A second upkeep undertaking on Texas Fuel’s North Louisiana Lateral will run Oct. 4-13, proscribing flows on its Carthage East-West phase to round 250 MMcf/d.

Spot-pricing influence

Carthage Hub’s low cost to money Henry Hub has remained above $1/MMBtu since mid-September, with record-high Haynesville fuel manufacturing beginning to bump up in opposition to the prevailing takeaway capability limits. Modeled manufacturing knowledge from S&P International reveals that Haynesville set a brand new each day and month-to-month report in September, reaching 15.64 Bcf Sept. 27 and averaging 15.2 Bcf/d for the month.

With takeaway choices extra constrained from each upkeep and robust manufacturing, storage injections on the Texas Fuel system have been ramped up, giving spot foundation spreads some reduction. At each areas’ Oct. 3 preliminary settlement, the Carthage Hub-Henry Hub unfold had narrowed again to a $1.205 low cost.

Each day storage injections from the Texas Fuel system climbed to a mean of 615 MMcf Oct. 1-3, almost double the 325 MMcf averaged over the last 10 days of September.

Outlook

With Texas Fuel upkeep tasks scheduled to run via mid-October, different pipelines could also be utilized to extend flows to KMLP and on to Sabine Cross. One choice might be Columbia Gulf Transmission, which introduced in September that its Louisiana XPress Undertaking would come totally on-line by Oct. 1, growing capability from northeastern Louisiana south towards coastal Louisiana.

There could also be some room on different pipelines that ship fuel on to Sabine Cross to reroute flows as effectively, pipeline nomination knowledge suggests. Deliveries to Sabine Cross from Creole Path Pipeline, Pure Fuel Pipeline Co. of America, and Transcontinental Fuel Pipe Line got here in under full operational capability limits Oct. 3.