Natural Gas News – April 9, 2020
Higher Natural Gas Prices Could Lead Recovery Of U.S. Energy Industry
Forbes: It’s hard to find bright spots amid the doom and gloom in today’s oil markets. No matter what happens at the OPEC and G20 meetings later this week in terms of supply management, the oil market faces a long road back to breaking the mid $50-a-barrel range that WTI crude was trading at before the coronavirus outbreak. But analysts and energy executives are increasingly looking to natural gas markets as a first source of relief for U.S. producers. American producers’ response to low crude prices, including shutting in uneconomic wells and slashing drilling capital budgets by 30 percent and even 50 percent, will have a dramatic effect on domestic natural gas output as well as oil. For more on this story visit forbes.com or click https://bit.ly/2VeDZjN
Asian prices edge up from record low but demand still stale
Reuters reports: Asian spot liquefied natural gas (LNG) prices edged up this week from record lows in the previous week as Chinese buyers re-entered the market, but stale demand elsewhere
capped the rise in prices. The average LNG price for May delivery into northeast Asia rose by 10 cents to an estimated $2.40 per million British thermal units (mmBtu) this week, several traders
said. Prices for cargoes delivered in June are estimated to be around $2.50 per mmBtu, they added. Four LNG tankers carrying U.S. LNG are on their way to China after Beijing started granting
tax waivers to some importers, trade sources said. This is the first time since March 2019 that shipments have resumed after a longstanding trade war in which China raised tariffs on LNG imports
from the United States to 25% last year. Beijing has started granting tax waivers to LNG importers, three China-based sources familiar with the matter said, though details on the companies that
have received exemptions on the tariffs were not clear. Two of the sources said the tariff has dropped to zero, though a separate value-added tax of about 10% still applies. China’s Guangzhou
Gas may have bought a cargo for delivery in June at about $2.40 per mmBtu, three traders said. This follows an earlier spot purchase by China’s ENN, they added. For more on this story visit
reuters.com or click https://reut.rs/2Rm7kr5
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