Natural Gas News – March 6, 2018

Natural Gas News – March 6, 2018

First Oil, Now Natural Gas: U.S. Emerging As India’s New Energy Partner

Forbes reported: Its official – India will be importing its first ever consignment of U.S. liquefied natural gas (LNG), a mere nine months on from signing up for its first consignment of American crude oil. In a statement on Monday (5 March), coinciding with the first day of IHS CERA Week in Houston, U.S., – an event that’s considered one of the oil and gas sector’s signature jamborees – Cheniere Energy, a leading American LNG exporter, said it would be sending its first consignment to India via the Sabine Pass Terminal in Louisiana. The importer – Gas Authority of India Limited – one of New Delhi’s state-owned energy companies, said the takings would be under a 20-year sale and purchase agreement (SPA). Of course, the SPA is not new. It was signed back in December 2011 with Sabine Pass in its infancy. But with the facility’s clout and future potential now clearly apparent in 2018, the dispatching of 3.5 million tons of LNG per year to India is no small matter.

US Natural Gas Consumption Nears Record Levels

Market Realist reported: On February 28, 2018, the EIA released its monthly natural gas consumption data. It reported that US natural gas consumption rose ~31% to 102.2 Bcf per day between November and December 2017. Consumption rose 6.6 Bcf (7%) per day year-over-year. US natural gas consumption hit a record high of 103.1 Bcf per day in January 2016.US natural gas prices have risen ~65% since March 3, 2016, partly due to improving demand and exports. US natural gas consumption averaged 75.1 Bcf per day in 2016 and 74.3 Bcf per day in 2017. The EIA estimates that US natural gas consumption could average ~77.4 Bcf per day in 2018 and ~79.2 Bcf per day in 2019.