New LNG plants could surpass nameplate capacities, adding to supply in coming years

LNG facilities currently under construction are able to achieve output above their nameplate capacity specification. Should this additional capacity materialize on a reliable, long-term basis, it could relieve some anticipated tightness in the LNG market. These details can be confirmed in documents and permits from the Federal Energy Regulatory Commission. S&P Global Platts Analytics has also done research on additional debottlenecking that Cheniere has considered at Sabine Pass, its liquefaction facility located in Louisiana. While debottlenecking is one way to achieve additional production gains, there is also potential for additional incremental volumes that are not quantified until a year or two of operations is achieved at the facility and efficiency gains are realized at individual trains. If these additional volumes are ultimately achieved, they could be marketed in new contracts as facilities come online, in the US and globally. The case for this comes from performance and capacity guarantees by engineering procurement and construction companies – known as EPCs. These include turbine manufacturers and other liquefaction technology licensing companies. The guarantees specify a minimum stated performance, and ultimately higher liquefaction capacities to meet the obligations of these contracts. Similar to minimum – and maximum – quantities that are specified in… continue reading

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Source: CTRM Center

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