Natural Gas News- June 28, 2022

June 28th 2022

Buyers Scramble To Lock In Long Term LNG Contracts In 2022

Demand for long-term LNG contracts has increased sharply in the
current year, with suppliers taking advantage of robust demand thanks
to a global effort to cut Russian imports by demanding much higher
rates for new long-term contracts. According to an Oil & Gas Journal
report, 10-year LNG contracts are currently priced at ~75% above
2021’s rates, with tight supplies expected to persist as Europe aims to
boost LNG imports. Meanwhile, volatile spot prices and a worsening
supply outlook have triggered a rush by importers to negotiate long-term
deals as they attempt to lock in prices. Last year, the volume of longterm
LNG contracts signed to end-user markets climbed to a 5-year high,
and the momentum is showing no signs of abating in the current year.
So far this year, more than 10 million tonnes/year (tpy) of LNG … For
more info go to https://bit.ly/3bnjqx6

Germany faces natural gas ‘crisis,’ raises warning level

Germany activated the second phase of its three-stage emergency plan
for natural gas supplies Thursday, warning that Europe’s biggest
economy faces a “crisis” and storage targets for the winter are at risk
after Russia reduced energy deliveries to several countries. The
government said the decision follows cuts Russia made to natural gas
flows starting last week and surging energy prices stoked by the war in
Ukraine. Industrial customers are being asked to reduce the amount of
natural gas they use, and Germany and other countries are turning back
to coal as a replacement, threatening climate goals in Europe as energy
tensions escalate between Russia and the West. “Even if we can’t feel it
yet — we are in a gas crisis,” Economy and Energy Minister Robert
Habeck said. Russia last week reduce… For more info go to
https://bit.ly/3bnjqx6

Asian Demand, Rising Costs Squeeze Europe’s LNG Import Plan

Europe’s plan to get through a winter of difficult Russian gas supply with
significant imports of liquefied natural gas (LNG) is at risk, with U.S.
supply curtailed by a key plant outage, rising demand in Asia and soaring
prices. The region’s commitment to sever dependence on Russian
supply due to its war with Ukraine has lead to heavy reliance on LNG
imports, mainly from the United States, to meet targets on filling gas
storage to 80% by November. Countries are bracing for a potential
complete cut-off from Russian gas with contingency measures such as
increasing coal-fired power generation and LNG as supply via the Nord
Stream 1 pipeline drops. But the global LNG market has been tight due
to a lack of new supply and reduced investment in recent years, with
most major producers operating close to full capacity. LN… For more info
go to https://bit.ly/3bnjqx6