Naturl Gas News – July 2, 2020
Mexico gas imports test record highs fueled by summer heat, downstream openings
Mexico’s gas imports from the US are poised to hit record highs in the weeks ahead, propelled by rising summer temperatures and potentially by an imminent opening in new downstream demand. In late June, exports twice surged to new record highs at over 6 Bcf/d. While record regional demand from northern Mexico last month coupled with hotter weather to lift Mexico’s baseline demand for US gas, the new single-day records appear to have been driven by increasingly frequent negative pipeline imbalances, data from S&P Global Platts Analytics shows. On June 25, US exports reached over
6.1 Bcf/d with no corresponding increase in Mexico’s sampled gas demand or national electric power load. Supply data also show no offsetting declines that day in domestic production or sendout volume from the country’s LNG import terminals. For more on this story visit spglobal.com or click https://bit.ly/3dOEic5
With Summer Heat, Natural Gas Prices Could Get Reprieve After
After cratering to their lowest in 25 years, natural gas prices are having their first winning week in five, thanks to progressively hotter summer weather that prompts Americans to crank up their air-conditioning, bringing hope to a market desperate to see demand improve, even as cases of COVID-19 surge. “As the coronavirus continues to change global demand for oil and gas and the surrounding economics, producers are facing their reckoning,” Houston-based gas risk consultancy Gelber & Associates wrote in a July 1 note to its clients, a copy of which was seen by Investing.com. Frontmonth Henry Hub gas futures were headed for a rise of nearly 14% on the week after a combined loss of more than 20% in four previous
weeks. For more on this story visit investing.com or https://bit.ly/2VGfNrw
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