Generic Hero BannerGeneric Hero Banner
Latest Market News

Sabine Pass LNG coping with pipeline force majeure

  • Spanish Market: Natural gas
  • 30/08/17

The US Gulf coast Sabine Pass LNG export terminal has maintained adequate feed gas despite a force majeure declared by one of three pipelines serving the facility.

"We have continued to maintain gas rates to Sabine Pass and that as a good partner to those we work with, we will continue to coordinate our business with theirs as able," Sabine Pass owner Cheniere Energy told Argus today.

Kinder Morgan on 28 August declared a force majeure on the Louisiana Line along its Natural Gas Pipeline (NGPL) interstate system because of limited access and evacuations in the area.

Sabine Pass, located in Louisiana along the border with Texas, has not received any gas from NGPL since then. The operating capacity from NGPL to the terminal has been zero since the 28 August. Its designed capacity to the facility is 1.7 Bcf/d.

Four liquefaction trains have been placed into service at Sabine Pass, but train 3 has been off line since late July for maintenance. Cheniere for now only needs three trains to meet its contractual commitments, as a long-term contract with Indian utility Gail will not begin until March.

Each train has peak capacity of 5mn t/yr, equivalent to 694mn cf/d of gas, and baseload capacity of 4.5mn t/yr.

Gas intake at Sabine Pass totaled 2.2 Bcf on 27 August, according to pipeline nominations, indicating three trains were operating at peak capacity before the force majeure.

Flow totaled 1.8 Bcf on 28 August and 1.9 Bcf on 29 August, indicating the trains operated at about baseload capacity on those days. Today's scheduled flow is 1.6 Bcf.

Sabine Pass can receive up to a combined 3.1 Bcf/d from the Creole Trail and Transco interstate pipeline systems. Since 28 August, the facility has received an average of 1.1 Bcf/d from the Creole Trail pipeline, compared with its operating capacity of 1.7 Bcf/d, and about 700mn cf/d from Transco, compared with its operating capacity of 1.4 Bcf/d.

The last cargo loaded from Sabine Pass on 24 August, according to market sources, who added it was the first test cargo from train 4. It reportedly was sold to India's Gail, which has a 20-year deal scheduled to begin in March for up to 3.5mn t/yr of Sabine Pass supplies.


Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more