Sabine Pass LNG feed gas deliveries drop amid upstream pipeline maintenance

Strong points

Sabine Pass feed gas deliveries fell to 4.05 billion cubic feet on October 3

Gas deliveries to KMLP via Texas Gas are reduced to zero

Feed gas deliveries to Cheniere’s Sabine Pass LNG have fallen nearly 1,100,000 cu ft since early October, as part of planned maintenance limiting natural gas deliveries to one of the main supply pipelines of the export facility.

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Pipeline naming data shows total gas deliveries to Sabine Pass fell to 4.05 billion cubic feet on October 3, down 18% from 4.93 billion cubic feet on October 1. around 854 MMcf on October 3 from 1.42 Bcf on October 1.

The decrease in throughputs on KMLP can be attributed in part to lower inflows on the pipeline from Texas Gas Transmission.

Pipeline maintenance

Texas Gas Transmission, a subsidiary of Boardwalk Energy Partners, has two planned pipeline maintenance projects that could limit flows to KMLP, which plunged to zero on Oct. 3.

The first maintenance project is for Texas Gas’ Columbia compressor station in northeast Louisiana and began on September 22. 23-Oct. 2, down from 210 MMcf/d from September 1 to 22. A second maintenance project on Texas Gas’ Louisiana North Lateral will run Oct. 4-13, limiting flows on its east-west Carthage segment to about 250 MMcf/d.

Spot price impact


Carthage Hub’s rebate to cash out Henry Hub has remained above $1/MMBtu since mid-September as record-breaking gas production from Haynesville began to come up against existing transmission capacity limits. Modeled production data from S&P Global shows Haynesville set a new daily and monthly record in September, hitting 15.64 Bcf/d on September 27 and averaging 15.2 Bcf/d for the month.

With delivery options more constrained by both maintenance and high production, storage injections into the Texas Gas system have been accelerated, providing some relief to spot basis spreads. During the preliminary settlement of the two sites on October 3, the Carthage Hub-Henry Hub spread had narrowed to a discount of $1.205.


Daily storage injections from the Texas Gas system averaged 615 MMcf from October 1-3, nearly double the average of 325 MMcf in the last 10 days of September.

Outlook

With Texas Gas maintenance projects scheduled to run through mid-October, other pipelines could be used to increase flows to KMLP and to Sabine Pass. One option could be Columbia Gulf Transmission, which announced in September that its The Louisiana XPress Project will be fully live by October 1increasing capacity from northeast Louisiana south to coastal Louisiana.

There may be room on other pipelines that deliver gas directly to Sabine Pass to also redirect flows, depending on pipeline naming data. Deliveries to Sabine Pass from Creole Trail Pipeline, Natural Gas Pipeline Co. of America and Transcontinental Gas Pipe Line were below full operating capacity limits on October 3.

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