Natural Gas News – January 30, 2018

Natural Gas News – January 30, 2018

Tanker Carrying Liquefied Natural Gas From Russia’s Arctic Arrives in Boston

The Washington Post reported: A tanker carrying liquefied natural gas from a sanctioned project in Russia’s Arctic has arrived in Boston Harbor, where it will be offloaded for American users. The giant tanker is carrying the first LNG exported by the Yamal facility, a $27 billion project whose majority owner is the Russian company Novatek. As of Sunday evening, the tanker was in the Mystic River at an LNG terminal, where the liquefied cargo will be turned back into gas form and distributed to gas companies and electric power utilities. The Treasury Department issued sanctions aimed at weakening Russia’s energy sector in July 2014, after Russia annexed Crimea and backed separatists in eastern Ukraine. The sanctions forbid any financing for projects belonging to Novatek, Russia’s largest independent producer of natural gas. But the Treasury sanctions do not prohibit the purchase of natural gas that originated from Yamal, according to experts on U.S. sanctions who spoke on the condition of anonymity because they are not authorized to speak for the U.S. government. For more on this story visit washingtonpost.com or click http://wapo.st/2npEoPf

Natural Gas Production Expected to Surpass Consumption

Natural gas production is expected to exceed domestic consumption over the next two years, something that has not happened in more than half a century, according to the U.S. Department of Energy. West Texas’ Permian basin will help drive natural gas production in 2018 and 2019, along with production in Appalachia’s Marcellus and Utica shale plays. The Energy Department expects that high production and low consumption will drive down natural gas spot prices to below their 2017 average. Prices are expected to average $2.88 per million BTU in 2019 and $2.92 in 2019, as compared to 2017’s average of $2.99. For more visit chron.com or click http://bit.ly/2rSjX2U