Energy Market Update: March 7, 2018

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How will the new LNG export facility in Cove Point, Maryland affect the United States?

In this week's Energy Market Update, Direct Energy Business Energy Strategist Tim Bigler looks at Cove Point LNG Export Facility in Maryland and Mexico's exports across the United States.

Watch the video below to learn more.

 

Cove Point LNG Exports Begin

The Cove Point facility will have pipelines going under the water to the buoy or the docking area. The Gemmata ship will load commissioning cargos, and approximately 700-800 thousand Dekatherms of LNG will go through the facility. Distribution is likely to stay consistent given the high demand for imports from China.

Mexico and LNG Exports

Mexico exports are setting record highs of 4.5 dekatherms per day. The capacity at the US border is about 8 million dekatherms per day, and the take away capacity on the other side of Mexico is not keeping up with the import capacity, but this could change dramatically.

Cove Point is now exceeding 3 Bcf/d with the 700-800 thousand dekatherms. By the end of 2018 this could easily expand by another Bcf/d with the addition of other facilities.

What will the price impact be for Cove Point LNG Exports?

Gas prices crashed at the beginning of the winter, but started to shoot back up in January. Prices have not set a new low, but nonetheless are slowly climbing back up, possibly because of the new Cove Point facility. Cove Point may have an even bigger impact once the market adjusts to regular business there

Stay tuned to the Direct Energy Business Blog for the latest energy market news and information.

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