Cheniere Energy Inc.’s Sabine Pass export terminal in Louisiana is scheduled to receive a record amount of natural gas, signaling that it’s closer to sending the first exports of U.S. shale gas abroad.
Bloomberg reports gas scheduled for a pipeline delivery point that serves the liquefied natural gas plant more than doubled this week to about 333.3 million cubic feet. That’s the most since Cheniere began preparing for exports in the fall, Ventyx data compiled by Bloomberg show.
It’s the latest development in America’s bid to supply the world with the gas flowing out of its prolific shale formations. Cheniere, which had planned to load its first tanker in January, put off the cargo until late February or March due to faulty wiring. U.S. drillers have been looking to send gas to markets in Europe, Asia and Latin America as they grapple with the biggest supply glut at home since July 2012.
Last week, U.S. regulators approved the addition of refrigerants at the Sabine Pass plant needed to chill gas into liquid. Since Sunday, the amount of gas flared at the terminal has swung from low to high levels, an activity typically associated with large industrial equipment being started up or shut down, according to the energy data provider, which is monitoring Sabine Pass with infrared cameras.
“The most important thing is they loaded the coolants and they are getting a record amount of feed gas to Cheniere,” says Theodore Michael, a Genscape LNG analyst. “We can conclude that they have begun the process of liquefaction.”
Faith Parker, a Cheniere spokeswoman, didn’t respond to an e-mail from Bloomberg seeking comment.
Reports of the record gas delivery come as Icahn Associates Corp.—the fund run by billionaire activist investor Carl Icahn—reports that it has increased its stake in Cheniere by 4.13 million shares. In December, Charif Souki was ousted as Cheniere’s chief executive officer over his plan to speed the growth of LNG projects, a strategy opposed by Icahn, the company’s largest investor.
While exports will help stoke demand for U.S. gas, the first cargoes will be a tougher sell as the global market starts to grapple with a glut of its own. The plunge in crude oil prices have wiped out most of the discount for U.S. supply.
