Natural Gas News – July 13, 2020
Berkshire’s bet on LNG underscores value of existing export facilities
Warren Buffett decided to bet on U.S. LNG at a time of tremendous uncertainty for global gas markets. Global LNG demand has taken a massive hit from the coronavirus pandemic and could take years to recover. Utilization rates at the six major U.S. LNG export terminals have plunged amid a wave of cargo cancellations, and developers of new U.S. LNG projects face major difficulties in advancing their facilities to construction. But Berkshire Hathaway Energy’s purchase of a 25% operating stake in Dominion Energy Inc.’s Cove Point LNG plant in Maryland illustrated that the Oracle of Omaha sees an enduring appeal in an existing U.S. LNG export terminal, a fully contracted asset that will generate cash for decades. It was part of a broader push into the midstream sector by the conglomerate through its $9.7 billion acquisition of Dominion’s natural gas transmission and storage business, announced July 5. For more on this story visit spglobal.com or click https://bit.ly/2ZmnLs3
US Midwest products prices due to rise from Dakota Access pipeline shutdown
Prices for gasoline and diesel in the US Midwest could rise in the coming months, market participants said, because of a US court ruling on Monday that ordered the largest pipeline from the North Dakota shale oil fields to be shut within a month. The line is the primary route for crude produced in the United States’ second-largest shale patch in the Bakken, and the oil is a staple for some refineries supplying the city of Chicago and the Midwest. The closure of Energy Transfer’s 570,000 barrel-per-day (bpd) Dakota Access oil pipeline (DAPL) will drive up the transport cost of crude to the refiners, or force them to pay for alternative supply from elsewhere. That will increase the cost of the fuel they produce. For more on this story visit
etenergyworld.com or https://bit.ly/2WvQF7p
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