Natural Gas News – January 21, 2020
US gas exporters fight to survive supply glut
The Wall reported: Multibillion dollar gas export projects that are central to the Trump administration’s push for “energy dominance” are locked in a battle for survival as prices fall and the market faces a supply glut. Liquefied natural gas is a critical outlet for the US’s surfeit of cheap natural gas and the country is on track to pull ahead
of Australia and become the world’s biggest exporter by 2024, the International Energy Agency has said. Companies ranging from Royal Dutch Shell and Total to utilities and smaller independent groups are racing into the LNG export market, but planned capacity exceeds what is likely to be needed. The consultancy McKinsey predicts that only one in 10 proposed export terminals will ever be built. Last year, global importers received 346m tonnes of LNG — gas condensed to a liquid so it can be loaded on
to tankers — according to S&P Global Platts. The volume will rise by 100m tonnes to 446m by 2025, it estimates.
Steel Reef Announces Closing of $500 Million Acquisition of Natural Gas Infrastructure Assets in Williston Basin
Yahoo Finance reports: Steel Reef Infrastructure Corp. (“Steel Reef” or the “Company”) is pleased to advise it has closed its previously announced transaction to purchase certain associated natural gas gathering, processing and sales infrastructure assets in Saskatchewan from Crescent Point Energy Corp. (“Crescent Point”) for total cash consideration of $500 million. “Acquiring key natural gas infrastructure assets in leading resource plays provides Steel Reef with the opportunity to enhance and integrate its full-service gas processing offerings,” said Scott Southward, President and CEO. “This acquisition demonstrates our resolve to provide infrastructure solutions for our customers, while providing value for our shareholders. We thank our customers and investors for their continued support as Steel Reef executes its growth strategy.” With
this acquisition, Steel Reef adds to its portfolio nine natural gas processing facilities, the associated gathering systems and sales gas pipelines.
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