In the News
GAZ Metro Looks to Send Liquefied Natural Gas into Vermont
VT Digger reports: The parent company of Vermont Gas Systems, which recently completed a natural gas pipeline in Vermont, is now offering another fuel option to businesses in the state: liquefied natural gas. Gaz Metro — Quebec’s largest natural gas distributor — has tripled production at a liquefied natural gas facility in Montreal. The new production is meant to serve Quebec’s heavy industries in the province’s northern reaches, executives say. The Quebec government has plans to continue expanding its natural gas distribution networks, for both economic reasons and expected environmental benefits of the fuel compared with other fossil fuels, according to the province’s energy policy. The LNG that Gaz Metro exports into the United States will probably serve large industrial clients, Imbleau said, including energy suppliers who would employ it “for peaking purposes.”
Sellers Continue to Drive Natural Gas Prices Lower
Economic Calendar reports: Natural gas prices continue to plummet, with the contract for July delivery on New York Mercantile Exchange dropping more than 2% to $3.07/MMBtu in today’s trading. Today’s selloff in natural gas prices represents the sixth decline in the last seven sessions. As a result of the precipitous selloff, the July contract is now testing potential support at the March 17th low at $3.08. The test of this support, combined with the extreme oversold condition impacting the market, suggests a period of stabilization or rebound could develop over the near term. Open interest in natural gas futures increased a modest 1,742 contracts during Tuesday’s decline. If this increase, however, represents the early stages of a consistent rise in outstanding positions as prices decline, the case for lower natural gas prices in the weeks ahead would be boosted further.