Natural Gas News- June 15, 2022
The Future Is Bright For U.S. Natural Gas Producers
Russia’s invasion of Ukraine has changed the state of the global natural
gas market forever. For U.S. natural gas producers, Europe’s desire to
wean itself off natural gas has significantly improved the long-term
outlook of LNG exports. The U.S. is set to account for 57% of new LNG
liquefaction capacity expected to come online globally between 2022
and 2026. As global demand for non-Russian natural gas is soaring after
Russia’s invasion of Ukraine, the short to medium-term prospects for
U.S. liquefied natural gas (LNG) developers and exporters are becoming
brighter. Europe is racing to replace as much Russian gas as soon as
possible and to be independent of that gas by 2027. LNG demand is
going through the roof, boosting the development of new U.S. export
liquefaction capacity as the demand prospects of the…
Natural Gas Plummets as Freeport Delays Facility Restart…
Natural gas prices plunged on Tuesday, after Freeport LNG said its
facility that had a fire last week likely won’t be back up and running
anytime soon. ″[C]ompletion of all necessary repairs and a return to full
plant operations is not expected until late 2022,” the company said
Tuesday in a statement. The facility, located in Quintana Island, Texas,
suffered an explosion last Wednesday. “Given the relatively contained
area of the facility physically impacted by the incident, a resumption of
partial operations is targeted to be achieved in approximately 90 days,”
Freeport LNG said. U.S. natural gas fell about 16% to $7.22 per million
British thermal units (MMBtu). “The U.S. natural gas market will now be
temporarily oversupplied as 2 bcf/d or a little over 2% of demand for
U.S. natural gas…
Russia Claims It Won’t Cut Off Gas Supply To More EU Customers
Russia does not plan to stop natural gas supply to more customers in
Europe, Kremlin spokesman Dmitry Peskov said on Thursday.
Customers that have refused to pay for gas under the new rules Russia
has imposed are already cut off, and no new halts in supply are planned,
Peskov told reporters at a regular briefing, as carried by Russian news
agency TASS. Russia has already stopped gas supply to Poland, Bulgaria,
Finland, the Netherlands, and customers in Denmark and Germany that
have refused to pay in rubles for gas. Russia wants the countries it
considers “unfriendly” – the whole of the EU, its biggest gas customer,
the U.S., and UK, and many other U.S. allies – to pay in rubles for gas.
Some have refused, fearing that they would not have guarantees and
saying the new currency demand is a breach of contracts…
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