Nat Gas News – November 20, 2018
Nat Gas News – November 20, 2018
Natural Gas Price Explosion Bankrupts Traders
Oil Price reported: A Tampa, Florida based options trading firm, OptionSellers, went dark this weekend after it informed its clients of a “catastrophic loss event,” resulting from a short squeeze on the natural gas market, ZeroHedge reports, citing parts of the letter. According to the letter, the short squeeze took place at a rate “truly beyond anything I [president James Cordier] have seen in my career. It overran our risk control systems and left us at the mercy of the market.” The market obviously had no mercy for traders shorting natural gas; last week, on Wednesday, natural gas shot up 18 percent to the highest since 2014, on the back of forecasts about cold weather that drove traders into a frenzy as they bought more gas to cover their short positions, probably opened on reports of ample supply in the United States. For more on this story visit oilprice.com or click https://bit.ly/2DQ1cT7
France’s Engie Signs Up For Natural Gas From Black Sea Oil & Gas’ Romania Field
S&P Global reported: France’s Engie has agreed to take 0.5 Bcm/year of gas from the planned Midia gas project offshore Romania operated by private equity-backed upstream junior Black Sea Oil & Gas (BSOG), the companies said Tuesday. Under the agreement, Engie will purchase gas from the project — which comprises the Ana and Doina offshore fields — for a minimum of 10 years. BSOG CEO Mark Beacom said the sales agreement with Engie — which is subject to BSOG taking final investment decision on the project — was an important step forward in the development. “We are delighted to have secured this important agreement for the sale of our gas,” Beacom said. “BSOG is working steadily toward achieving all the remaining milestones on the project required to reach FID such that a decision can be taken on whether to approve FID,” he said. Gas from Midia — which is estimated to hold some 10 Bcm of gas — will be delivered at Vadu entry point into the national gas transmission system. For more on this story visit spglobal.com or click https://bit.ly/2A7I0M9
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