Natural Gas News – November 29, 2018
Natural Gas News – November 29, 2018
Russia Outmaneuvers U.S. LNG
Oil Price reported: For years, boosters of U.S. LNG have trumpeted the fact that gas exports from the Gulf of Mexico could break Russia’s grip on the European energy market. That has yet to be the case, and in fact, Russia has managed to respond with various strategies to maintain its market share on the continent. “The United States is not just exporting energy, we’re exporting freedom,” U.S. Secretary of Energy Rick Perry said in early 2018. “We’re exporting to our allies in Europe the opportunity to truly have a choice of where do you buy your energy from. That’s freedom. And that kind of freedom is priceless…There’s no strings attached when you buy American [liquid natural gas]. So that’s world-changing.” That comment from Perry crystalizes conventional wisdom in Washington. Europe relies on Russia for about a third of its gas needs. For years, Russia’s Gazprom was able to bind various European countries up into rigid contracts with fixed prices, often linked to higher crude oil prices. For more on this story visit oilprice.com or click https://bit.ly/2DNVHU9
China Gas Boom Opens Free Market Cracks for Trucks and Ships
Bloomberg reported: So you want in on China, the world’s fastest growing gas market? It would have been virtually impossible last decade. The only gas seen in China was pumped from its own wells and sold at prices strictly regulated by the government. Today, things are vastly different as China has become the world’s biggest importer. Its battle against smog by replacing coal furnaces caused demand for cleaner-burning gas to explode, pushing up prices above state-controlled rates. Amid the surge in consumption and imports, new trading methods have emerged that reflect supply and demand in ways inconceivable under tight pricing controls that dominated the market. The government has also signaled a willingness to loosen its grip, pushing through policies in recent times that adopt more free-market practices common in the U.S. and Europe. For more on this story visit bloomberg.com or click https://bloom.bg/2DONkYq
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