Natural Gas News – August 15, 2023
Natural Gas News – August 15, 2023
Column: LNG’s Calm Veneer Stripped By Australia Strike Threat
LAUNCESTON, Australia, Aug 14 (Reuters) – The comfort that had characterized natural gas markets in Asia and Europe in recent months was shown to be a mere illusion by the threat of strike action at three major Australian liquefied natural gas (LNG) plants. In the blink of eye, a market that had looked well supplied and relaxed was turned into a flighty wreck, with prices jumping higher on only the possibility of unspecified labor action at LNG plants operated by Woodside Energy (WDS.AX) and Chevron (CVX.N) in Western Australia state. The spot price of LNG for delivery to North Asia climbed to $11.50 per million British thermal units (mmBtu) in the week ended Aug. 11, the highest in a month and up 5.5% from the prior week’s $10.90. But the impact of the strike threat at gas fields that feed the Woodside-operated …
Why We Should Be Worried About Gas Prices Again
Demand for fuel in the northern hemisphere is still subdued, with a couple of months to go before the start of the heating season. But the prospect of prolonged plant closures has sent wholesale gas prices soaring, and comes on top of extreme weather events that have tested energy systems this summer, as well as setbacks among other large producers. The latest escalation in supply fears was sparked by a dispute about pay and conditions at Australian plants belonging to Chevron Corp. and Woodside Energy Group Ltd., which account for over 10% of global liquefied natural gas supplies. While the facilities’ owners made billions of dollars from the turmoil that sent gas prices to record highs last summer, their workers have demanded to receive higher compensation, too, with labor unions set…
This article is part of Daily Natural Gas Newsletter
Tagged:
MARKET CONDITION REPORT - DISCLAIMER
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.
