On May 12, The US Department of Energy (DOE) announced that it gave final approval for Cheniere Energy to export liquefied natural gas (LNG) from its $11.5 billion proposed plant in Corpus Christi, Texas. Cheniere will build two LNG trains at the site, with a total 13.5 million tons a year of capacity, a mega-LNG… Keep reading →
A few Asian buyers of US LNG are looking to sell portions of the supply they purchased under long-term contracts, suggesting the excitement over exporting US natural gas as LNG could be waning a bit. When US gas production began booming around 2007 and prices cratered – falling to as low as $2 per MMBtu… Keep reading →
Japanese utility Tohoku Electric announced an initial agreement to purchase 300,000 tons of LNG at Henry Hub-linked prices annually for 16 years starting in 2022 from the proposed Cameron LNG project. A Mitsubishi trading division with equity in the plant would supply the fuel if an FID is reached. [Reuters] New York Governor Andrew Cuomo… Keep reading →
Intensified competition between Russian gas giant Gazprom and Russian gas independent Novatek is showcasing the advantages to producers of LNG pricing flexibility, according to Eurasia Group Global Energy and Natural Resources analyst Leslie Palti-Guzman. Natural gas analysts frequently point out that there are three different pricing regions for gas – North America, Europe and Asia.… Keep reading →
The Chevron-Apache Kitimat LNG export project in British Columbia has the potential to capitalize on Canada’s vast natural gas resources, as well as the proximity of its western coast to Asian markets. But it is also up against competition from producing countries like Australia, where the buildout of LNG export infrastructure is already well underway,… Keep reading →
The US Northeast has traditionally been saddled with some of the country’s highest natural gas prices. But with production growth in the region exceeding expectations, a resulting gas glut could push regional prices down below those at other trading points around the US, according to Barclays. Barclays data shows that output from the Marcellus shale,… Keep reading →
US natural gas prices could face rising volatility over the next several years as demand begins to catch up to the rapid supply growth of the last several years, according to Michael Zenker, Managing Director of Energy Research for SASCO Energy. The huge wave of supply that hit the US market in less than a decade… Keep reading →
Good news for gas drillers! A few days before the Environmental Protection Agency announced that it will neither finalize nor seek peer review of its investigation of the impact of hydraulic fracturing on groundwater at an Encana-operated field near Pavillion, Wyoming, The United States Geological Survey announced that it had found naturally occurring methane in… Keep reading →
Speakers at the Energy Information Administration Conference in Washington, DC this week addressed three critical questions raised by the prospect of US LNG exports: how much US gas will the global market take, what impact will US exports have on global prices, and will development of unconventional gas outside of North America have a dampening… Keep reading →
The large gap between domestic US natural gas prices and LNG prices in European and Asian markets that underlies the rationale for US LNG exports has raised the question: when US gas is sold abroad, who captures that spread? The difference between low prices paid for gas produced in the US – currently trading at… Keep reading →
