Natural Gas News – September 14, 2023
Natural Gas News – September 14, 2023
Natural Gas Prices Forecast: NatGas Landscape Rides on Weather
US natural gas futures have experienced volatility in recent days, with a surge on Thursday ahead of the Energy Information Administration’s (EIA) weekly storage report. The EIA will release its weekly storage report at 14:30 GMT. However, this follows a 2% slide the previous day due to anticipated milder weather and a reduced demand outlook. This demand drop was partially attributed to a decline in gas flowing to LNG export plants, particularly from the Freeport LNG plant in Texas. During the week-ending September 8, US utilities added a below-average 48 billion cubic feet (bcf) of natural gas to storage, driven by a hotter-than-average weather that spurred power generators to burn more fuel. This storage addition was notably less than the same week in the previous year and the five-year average. Early estimates …
China’s LNG Buying Spree Threatens Global Gas Market Stability
China is back on the spot LNG market to seek cargoes for the coming winter, potentially upsetting a fragile balance in the global natural gas market just as Europe has reached its gas storage target well ahead of the November 1 deadline. Following a record slump in Chinese gas demand and LNG imports last year prompted by Covid-related lockdowns, China’s gas consumption has risen so far this year compared to 2022, although it’s still below the growth seen up to 2021. In recent months, China has signed a lot of long-term LNG supply deals, including with the top exporters, the United States and Qatar. But China is also back on the spot market with a massive tender for cargoes to be delivered later this year and throughout 2024. Intensified competition from China and other Asian buyers could l…
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