Natural Gas News – August 27, 2018
Natural Gas News – August 27, 2018
Europe’s Natural Gas Prices Surge to Record for Summer Season
Oil Price reported: Europe’s natural gas market is the most bullish it has been in years, as higher-than-expected summer demand and a tighter market drive natural gas price futures to levels last seen during this past winter’s supply crunch and to the highest for a summer season. Natural gas prices are expected to stay strong and may still have room to rally, ahead of the next winter heating season in Europe that begins in October, analysts and traders tell Bloomberg. Contrary to the typical summer lull in Europe’s gas prices, this year the front-month gas price in the UK—Europe’s biggest gas market—for example, is nearing the winter price from December 2017 when a deadly explosion in Austria’s gas hub at Baumgarten squeezed supplies throughout Europe. Immediately after the explosion, the price of gas for immediate delivery in the UK reached its highest level since 2013. For more on this story visit oilprice.com or click https://bit.ly/2MWoL0s
The Consequences of Surging U.S. Natural Gas Exports to Mexico
Oil Price reports: New pipeline capacity additions on both sides of the border have helped U.S. natural gas pipeline exports to Mexico to jump to their highest level on record in July. American exports are set to further increase with a number of pipelines expected to become operational by 2020, the EIA said in a note this week. The newly commissioned pipelines benefit both countries. For the United States, more pipeline takeaway capacity gives the Permian an additional export outlet from West Texas to Mexico as producers are looking at ways to ease pipeline constraints not only on crude oil production, but also on natural gas whose production is also booming. For Mexico, natural gas imports help to meet its rising gas demand as the country is adding gasfired electricity generation capacity at a rapid clip while it faces a decline in its domestic gas production. For more on this story visit oilprice.com or click https://bit.ly/2wrWMf0
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