September 24, 2019

September 24, 2019
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  • WTI is down 62c to $58.02/Bbl, and Brent is down 81c to $63.96/Bbl
  • Oil prices are trading down about 1% this morning, but still elevated from levels seen before the September 14 attacks on Saudi oil infrastructure
    • There are an increasing number of reports pointing to Saudi Aramco purchasing external products and potentially also crude to meet its term commitments, according to consultancy JBC Energy
    • JBC also added that this type of behavior does not give the impression that an imminent return to full capacity is in sight
  • US Crude Spreads:
    • WTI Midland’s spread to WTI at Cushing rose 15c on Monday to +50c/Bbl, the highest since mid-August
    • Magellan East Houston (MEH)-WTI premium to strengthened by +45c to +$4.25/Bbl, the highest since late July
      • MEH-WTI had been at only a ~$2/Bbl premium after both Cactus 2 and the EPIC crude pipelines started flowing more Permian oil to the Gulf Coast in late August
  • Natural gas is up 1.5c to $2.542/MMBtu
  • Annova LNG, an affiliate of Exelon, is delaying its Final Investment Decision (FID) on its Brownsville facility until June 2020
    • The company originally anticipated FID in 2018, however Annova cites FERC delays as the reason for pushing their decision
    • The midscale facility is planned to consist of six trains with a total output capacity of 1 Bcf/d
  • Maintenance on Cheniere’s Sabine Pass Train 5 has officially been completed
    • Each train has an estimated capacity of just over 600 MMcf/d
    • LNG feed gas demand is slightly below 6.0 Bcf/d
  • Tellurian signed a $2.5 billion deal with Petronet for an equity investment in their Driftwood facility
    • This sizable investment follows Total’s approximately $1 billion investment in the facility earlier this summer
    • Tellurian is expected to make a Final Investment Decision on the nearly 4.0 Bcf/d facility by the end of the year

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