Natural Gas News – August 23, 2018
Natural Gas News – August 23, 2018
New Pipelines to Boost U.S. Natural Gas Exports to Mexico
Chron reported: U.S. natural gas exports to Mexico by pipeline are expected to jump in the coming months as several long-awaited projects are placed into service to feed growing demand across the border and potentially ease bottlenecks in the Permian Basin in West Texas. The U.S. Energy Department reported that four major pipelines are scheduled to begin commercial operations by the end of the year to supply Mexico’s power generation and industrial sectors. The country has emerged as one of the largest customers of U.S. natural gas after overhauling its energy policies five years ago. The pipelines, which include Enbridge’s Nueces-Brownsville project in the Rio Grande Valley and three projects in Mexico, are expected to start up in October and November. They’ll help bring gas from West Texas, where there is a pipeline shortage, and elsewhere in the state to central and western Mexico. For more on this story visit chron.com or click https://bit.ly/2wle0uB
Europe’s Unprecedented Natural Gas Rally Drives Up Power
Bloomberg reports: Europe’s natural gas prices have risen to their strongest level for this time of year, lifting the cost of electricity for factories and utilities. Shaking off gloom depressing broader commodity markets, the U.K. benchmark for gas is nearing levels last seen in December when a key supply line exploded, and seven traders and analysts expect further gains. The move bucks the normal seasonal pattern of weaker prices in the summer when heating demand dwindles and contrasts with slumps in everything from oil to gold, sugar and zinc. China’s energy demand is drawing in cargoes of liquefied natural gas that might otherwise have stayed in Europe, firming the gas market at a time when power generators are demanding the fuel to meet rules from governments to lower pollution from coal. Those trends along with carbon emission prices at a 10-year high is increasing the cost of electricity in Britain to Germany and France. “You have a perfect storm,” said Wayne Bryan. For more on this story visit bloomberg.com or click https://bloom.bg/2wnaPm5
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