Natural Gas News – April 23, 2018
Natural Gas Prices in Mexico Fall 14% in March to New Low of $3.88/MMBtu
Platts reported: Natural gas prices across Mexico decreased by 14.4% in March from February levels to $3.88/ MMBtu (Peso 68.85/GJ), the lowest level for the index since the country’s Energy Regulatory Commission (CRE) began tracking prices in July 2017. The country’s gas prices peaked at $4.55/MMbtu (Peso 80.45 MMbtu) in February. The index is composed of monthly transaction sales reports that marketers submit to CRE, and the index price includes marketing and transportation costs charged by marketers. The reporting process does not differentiate among fixed-price or indexed deals, or between spot or forward transactions. Much of Mexico’s gas sales are still largely indexed to a one-month lag on a basket of US gas hubs. US gas prices experienced sharp increases in January due to cold weather across the country. This increase in gas prices in the US in January was experienced in Mexico in February. S&P Global Platts Analytics can see that Mexican gas prices fell considerably in March, likely following the January-to-February decline in prices in the US.
Panama Canal Set to Increase LNG Capacity by Five Times by 2020
Energy Digital reported: Last year, the canal carried 6mn tonnes of the fuel, with the number expected to reach 30mn in two years. The prediction, set by the Panama Canal Authority which informed Reuters, is in accordance with the rise of production of LNG in the country. LNG demand has grown along with fuel supply – notable from shale fields in the US and offshore reserves in Australia. Countries like China have also been using the fuel as an alternative to coal, due to environmental and polluting reasons. In the coming years, the US’ LNG capacity is expected to reach 70mn tonnes following current projects under construction becoming operational.