Posts Tagged ‘LNG’

Why US natural gas prices hit multi-year lows this week

On Oct. 29, 2015, the NYMEX November natural gas futures contract settled at $2.033/MMBtu.

For comparison, the November contract closed at $3.649/MMBtu in 2014, $1.61 higher or 79 percent higher than Oct. 29. The last time the prompt-month contract closed lower than Oct. 29 was April 24, 2012 at $1.975/MMBtu.

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US continues to distance itself as the world leader of natural gas

Over the last decade, the United States has firmly established itself as the world’s largest natural gas producer. This significance of this is difficult to overstate, as less than a decade ago growing natural gas demand and declining production was putting the US on course to import significant amounts of gas from abroad.

The growth has created a buzz throughout the entire commodity industry and around the world. Folks that cover oil, ethanol, electricity, coal, natural gas liquids, petrochemicals, and grain often comment about the exceptional growth of the US natural gas industry, sharing thoughts on how big a role gas will play in the US and abroad.

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The Panama Canal is leaking!? Eh…who cares, LNG trade seems to say

During routine testing of the expanded Panama Canal, engineers recently discovered some alarmingly large leaks in the new Cocoli Locks on the Pacific side, separating the middle and lower chambers. Despite the startling volume of water that can be seen cascading through what appears to be several meters of solid concrete, news of this development seems to have remained a secret. Alternatively, perhaps it’s just that no one actually cares.

According to the Panama Canal Authority, LNG tanker traffic is expected to reach 25 million metric tons per year upon completion of the expansion project. In recent years, LNG export project developers along the US Gulf Coast have been banking on an expanded canal for sales to Asia. Indeed, according to some estimates, the transit distance from the US Gulf Coast to Japan can be reduced to around 9,215 nautical miles, compared with 14,570 nautical miles through the Suez Canal.

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Oman exports more LNG in move with implications for oil

Over the past two years, Oman has quietly expanded the number of countries to which it exports LNG to well beyond those with which it has long-term supply contracts.

In a state that needs increasing gas volumes to fuel its oil and heavy industrial sectors, this raises far-reaching questions about energy strategy.

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Sussing out the ceilings over Russian gas prices

In this month’s selection from Platts Energy EconomistManaging Editor Ross McCracken explains what is currently contributing to Russia’s slipping grip on the European natural gas markets and questions whether Russian gas will be competitive in the future.

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Viewing global LNG from the House at Pooh Corner, where Eeyore lives

Ross McCracken, managing editor of Energy Economist, shares what the world of LNG would look like to an unabashed pessimist . . . or maybe just to someone who eyes the massive production boom on the horizon with some concern.

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US LNG exports: A move toward gas market price convergence

Much has been written in recent years about the potential impact of upcoming US LNG exports. Market analysts have pondered the likely effect on domestic US natural gas prices, gas production rates, domestic employment, GDP and even consumption by related petrochemical and agricultural industries. On the global stage, many expect that at current price levels US gas could flood the European and South American markets, pushing Atlantic Basin gas prices to new lows.

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Oh US gas demand, where art thou?

In the United States, natural gas is having quite a year. Year-to-date, Platts unit Bentek Energy data shows natural gas production has averaged 72.4 Bcf/d, a 5.2 Bcf/d, or almost an 8% increase, from a year ago. This growth is impressive itself, but what makes it even more impressive is the growth has come while prices have been depressed and demand has lagged.

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US oil exports seen as key to security: Regulation and Environment

There’s an economic argument to be made for lifting US crude oil export restrictions, and then there’s the argument that American oil could go a long way toward providing security to the US and its allies. Brian Scheid explains in this week’s Oilgram News column, Regulation and Environment.

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Mad Men face a challenge selling Australian coalseam gas

Back in 1979, Australians were wowed by a television advertising campaign in which natural gas was depicted as “The Living Flame.”

Produced for eastern Australia-based gas utility AGL, the advertisement showed ballerinas dancing around a giant cooking hob, depicting natural gas in human form. The Living Flame was positive, beautiful and memorable. It was a campaign that would have made Don Draper proud.

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