Natural Gas News- July 19, 2022

July 19th, 2022

LNG Exports Shoot Up in Louisiana, US in 2022 Amid Booming Demand

Led by a trio of Louisiana facilities, the United States’ liquefied natural
gas export terminals are exceeding their 2021 pace amid growing
demand for LNG in natural gas-starved Europe. Collectively, the seven
operating LNG export terminals in the U.S. have pumped out more than
1.7 trillion cubic feet of LNG through May, according to the most recent
data available from the Department of Energy.That’s nearly 260 billion
more than the nearly 1.5 trillion cubic feet that U.S. terminals moved at
the same point last year. Leading the way was Sabine Pass LNG in
Cameron Parish, near the Texas border. Sabine Pass LNG has exported
nearly 626.9 billion cubic feet through May, a 100 billion-cubic-foot
spike compared with its total through the same month in 2021. The
facility has accounted for more than a third of U.S. products… For more
info go to https://bit.ly/3cqw5A0

Soaring U.S. Production Can’t Keep LNG Prices In Check

U.S. natural gas has rallied as much as 10% to a two-week high following
forecasts for hotter than usual weather to continue across much of the
country, with the sweltering heat and tight grid conditions reminiscent of
the deadly summer heat wave of 2011. The heat has already raised
power demand to record levels in Texas and other parts of the U.S.,
thanks to a sharp increase in cooling demand. Nymex natural gas for
August delivery was quoted at $6.49/MMBtu in Friday’s session, good
for a nearly 70% climb in the year-to-date. The gains come despite a
sharp increase in U.S. production to record highs as well as forecasts for
lower gas demand over the next two weeks. Meanwhile, the Freeport
LNG export plant in Texas remains out of service and is expected to
remain shut until October though… For more info go to
https://bit.ly/3cqw5A0

Long Term LNG Contracts Are The Future For Natural Gas Markets

Several years ago, the leaders of the European Union sat back
contentedly and watched the spot market for the natural gas they had
put so much effort into working like a well-oiled machine. Gas was cheap
and there was plenty of it to go around. Then, all of a sudden, things
changed dramatically. The spot gas market was one of the European
Union’s great points of pride as it sought to wrest control of its own
energy supply from Russia. The EU had snubbed Gazprom’s long-term
deals, not wanting to get saddled with the obligation to buy Russian gas
at a certain locked-in price as it was moving towards a renewable energy
future. It didn’t need so much gas, the EU thought. Yet the EU was not
the only one taking advantage of flexible prices on the LNG spot market.
Everyone was. Gas was abundant, and prices were low—it wa… For more
info go to https://bit.ly/3cqw5A0