Natural Gas News – June 13, 2023
U.S. LNG Gains Influence in New Geopolitical Landscape
Liquefied natural gas has become a geopolitical tool in international relations and energy diplomacy. The Ukraine-Russian war has reshaped the global energy map and brought a new geopolitical dimension to LNG. The LNG market is now almost as affected by international relations as it is by supply and demand. So, how have recent market events accelerated LNG playing a role in the tool kit of foreign policy and energy diplomacy? The Ukraine-Russian war has highlighted the inconvenient reality of Europe’s historical reliance on Russian gas. Prior to the war, Russian gas flows to Europe accounted for approximately 45% of EU gas imports. Natural gas is deeply embedded in the economies of the European Union as it accounts for 23% of energy consumption, according to the European Commission.
US NatGas Up 1% On Hot Late June Forecasts, Futures Volatility Drops
U.S. natural gas prices edged up about 1% on Monday on forecasts that hot weather will boost air conditioning demand in late June and as wildfires caused gas exports from Canada to decline again. Futures volatility fell to a 13-month low after weeks of small price changes. Gas prices rose despite forecasts for lower demand over the next two weeks than previously expected as gas flows to U.S. liquefied natural gas (LNG) export plants remain low due to maintenance work. Front-month gas futures NGc1 for July delivery on the New York Mercantile Exchange rose 1.2 cents, or 0.5%, to settle at $2.266 per million British thermal units. Mild weather so far this year has kept heating and cooling demand low, cutting historic or actual 30-day close-to-close volatility to 61.9%, its lowest since April…