Natural Gas News – May 23, 2019
Natural Gas News – May 23, 2019
Saudi Arabia wants to buy tons of American natural gas
CNN reported: Saudi Arabia has placed a huge bet on American natural gas. In a sign of shifting energy fortunes, Saudi Aramco announced a mega preliminary agreement on Wednesday to buy 5 million tons of liquefied natural gas per year from a Port Arthur, Texas export project that’s under development. If completed, the purchase from San Diego-based Sempra Energy (SRE) would be one of the largest LNG deals ever signed, according to consulting firm Wood Mackenzie. Aramco, Saudi Arabia’s crown jewel, would also inject a cash infusion into the Port Arthur development in exchange for a 25% stake. For more on this story visit cnn.com or click https://cnn.it/30BvmSh
Natural Gas Prices In The Permian Flip Negative Again
Oil Price reported: Natural gas prices at the Waha hub in West Texas are negative again this week, for the first time since plunging to an all -time low of minus $4.28 per million British thermal units (MMBtu) in early April, according to data compiled by Reuters. On Wednesday, next-day natural gas prices at the Waha hub in the Permian dipped to below zero—to minus $0.40 per MMBtu, for the first negative reading since early April. According to Reuters estimates, Waha natural gas prices averaged just $0.92 per MMBtu so far in 2019, compared to $2.10 in 2018 and a five-year average of $2.80 between 2014 and 2018. In early April, prices at the Waha hub plummeted to record low negative levels, as pipeline constraints and problems at compressor stations at one pipeline stranded gas produced in the Permian. Gas production in the Permian has been rising in lockstep with crude oil production, and even though gas takeaway capacity has attracted less media attention, pipeline constraints for natural gas are similar to those of crude oil pipeline capacity. The natural gas takeaway capacity constraints have resulted in more gas flaring in the Permian on the one hand, and in a record-high spread between the Waha gas hub price and the U.S. benchmark Henry Hub in Louisiana, on the other hand. For more on this story visit oilprice.com or click https://bit.ly/2YPRu9R
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