Due to the Arctic frost, gas supplies to LNG plants in the U.S. have dropped to a four-month low. Just a week ago, they were breaking records and U.S. LNG suppliers were experiencing very different problems – a shortage of tankers and congestion in the Panama Canal.
“The deep U.S. freeze has curbed U.S. LNG exports. Gas shipments to plants have fallen to a four-month low as the Arctic freezes in Texas ‘shut down’ ports and wells while building up domestic demand,” Bloomberg reporter Stephen Stapzynski wrote on Twitter.
According to Bloomberg, deliveries to the Sabine Pass, Cameron, Elba Island, Cove Point, Freeport, and Corpus Christi plants fell by a third to 210 million cubic meters per day. The Cove Point, Freeport, Elba Island, and Corpus Christi plants saw the biggest drop – 2-4 times.
U.S. LNG buyers abandoned more than 100 shipments in the spring and first half of the summer due to fuel oversupply and reduced demand due to quarantine. Exports themselves dipped to 70 million cubic meters per day. In the second half of the year, however, demand began to recover along with prices, and, for example, the U.S. set a new LNG export record of 310 million cubic meters in January.
Meanwhile, Arctic frosts continue to march across the U.S. and about 800 daily temperature records were recorded in the country. Electricity consumption capacity in Texas, for example, has reached nearly 70 GW and has already broken the historical record. Blackouts began in the southern states, the wholesale price of electricity soared to $ 9 thousand per MW, and gas – up to $ 13.3 thousand per thousand cubic meters. Due to frosts half of the wind farms don’t work and wells producing shale gas freeze up.
In the USA over the last days, gas production has decreased by 8%. “Shale oil and gas wells are freezing, limiting production,” Stephen Stapzynski wrote on Twitter.
Producer RBN Energy reported, for example, that its production in the Permian Basin fell by 42 million cubic feet per day. At the same time, oil production in the region fell by 1 million barrels.