Natural Gas News – November 15, 2022
Natural Gas News – November 15, 2022
High LNG Prices Have Sparked Demand Destruction In India
India’s industrial gas customers have been buying less LNG from storage sites due to high spot prices, which has sent LNG storage levels at import terminals to near capacity, traders familiar with the situation told Bloomberg on Thursday. The very high spot gas prices have resulted in demand destruction for India’s industrial customers who have resorted to alternative fuels such as oil products and domestic supplies of gas, according to the traders. The lower demand for LNG has created a glut of the imported fuel with some storage tanks full and potentially delaying additional LNG imports into India, Bloomberg’s sources said. Lower demand from India could be a relief for global LNG prices just as the winter in Europe approaches. This year, Europe has been outbidding Asian customers as it has scrambled to… For more info go to https://bit.ly/3UWgWXX
EIA now expects U.S. natural gas prices to average above
In our November Short-Term Energy Outlook (STEO), we forecast that natural gas spot prices at the U.S. benchmark Henry Hub will average $6.09 per million British thermal units (MMBtu) this winter (November 2022–March 2023), the highest real price since winter 2009–10. Our forecast reflects natural gas storage levels that are 4% below average heading into winter withdrawal season and more demand for liquefied natural gas (LNG) as the Freeport LNG facility comes back online. After the winter, we expect the Henry Hub price to decline in 2023 as production growth outpaces both domestic consumption and LNG exports. Henry Hub natural gas spot prices reached a peak of $8.80/MMBtu in August. Prices declined to average $5.66/MMBtu in October following a period of strong dry natural gas production… For more info go to https://bit.ly/3Ez9kWf
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