Hurricane Delta and LNG exports in a Battle

October 8, 2020

Markets like to fight the last battle. The last battle for Natural Gas was Hurricane Laura. Laura took out power to Western Louisiana, taking Cameron LNG exports offline for ~5 weeks. Enter Hurricane Delta, an extremely unusual event. In the month of October+, there has been only one hurricane further west in the Gulf of Mexico than Delta that made landfall as a Category 3 dating back to the 1800s. Typically steering currents make October pathways much more Atlantic-based than GOM-based. And if hurricanes are "home grown" in the Gulf, they tend to arc east. So far, the track of Delta (see link above) maintains a course to Western Louisiana, pressuring prices due to the threat of lost LNG export. If the hurricane keeps the "dirtier" eastern side of the hurricane to the east of Cameron and Sabine, that will probably be supportive of prices. If the path maintains its course and makes landfall near Lake Charles, that would likely be negative, as exports would be at risk again.  

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