Natural Gas News – June 13, 2018
Natural Gas News – June 13, 2018
China Plans to Create a $78 Billion Natural Gas Giant
Oil Price reported: Together with its massive push to have more and more residential and industrial customers switch from coal to gas, China is aiming to overhaul the ownership of its huge gas pipeline network that would allow third-party access to the gas pipelines and would help Beijing in its efforts to cut pollution by using more natural gas instead of coal. For several years, China has been studying merging the oil and gas pipeline assets of three of its state-held energy giants—China National Petroleum Corporation (CNPC), China Petrochemical Corporation (Sinopec), and China National Offshore Oil Corporation (CNOOC). Now the regulators are targeting to announce before the winter a decision to merge the three companies’ pipeline assets, estimated to be worth around US$78 billion (500 billion Chinese yuan), according to people with knowledge of the plans who spoke to Bloomberg. For more on this story visit oilprice.com or click https://bit.ly/2t8ZXXs
Natural Gas Production in U.S. to Set Records in 2018, 2019
Platts reported: U.S. dry natural gas production will average 81.2 billion cubic feet per day (Bcf/d) in 2018 – a new record – the Energy Information Administration projects in its just-released Short- Term Energy Outlook (STEO). STEO/EIA expects natural gas production will rise and set a record again in 2019, to 83.8 Bcf/ d, Kallanish Energy reports. By comparison, U.S. dry natural gas production averaged 73.6 Bcf/d in 2017. “Growing forecast U.S. natural gas production supports increasing forecast liquefied natural gas (LNG) exports,” according to EIA. “LNG exports averaged 1.9 Bcf/d in 2017; EIA forecasts LNG exports to average 3.0 Bcf/d in 2018, and 5.1 Bcf/d in 2019.” EIA expects Henry Hub natural gas spot prices to average $2.99 per million British thermal units (MMBtu) in 2018, and $3.08/MMBtu in 2019. NYMEX futures and options contract values for September 2018 delivery that traded during the five-day period ending June 7, suggest a range of $2.38/MMBtu to $3.57/MMBtu. For more on this story visit kallanishenergy.com or click https://bit.ly/2LNHuae
This article is part of Daily Natural Gas Newsletter
Tagged:
MARKET CONDITION REPORT - DISCLAIMER
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.
