Natural Gas News- August 2, 2022
Why Natural Gas May Be In Store For More Price Gains After a 50% Climb in July
Natural-gas futures bucked the trend of pullbacks in commodity prices
this month and look to finish July with a 50% gain, the second largest
monthly percentage rise on record. Russia has been holding back
natural-gas supplies in Europe, curbing the flow through the Nord
Stream 1 pipeline, leading to a rally in the region’s prices and higher
demand for liquefied natural gas from the U.S. Hotter-than-usual
weather in many parts of the U.S. has also contributed to the rally for
commodity, which is used as a power source to meet cooling demand.
Natural-gas futures NGU22, -4.00% NG00, -4.00% on the New York
Mercantile Exchange are trading about 50% higher for the month of July,
settling at $8.134 per million British thermal units on Thursday.
European benchmark Dutch TTF gas futures, meanwhile, has seen a
monthly climb… For more info go to https://on.mktw.net/3QbXwvR
US Natgas Futures Up
Gas-fired plants have provided over 40% of US power this month,
according to federal energy data, even though gas prices were up about
52% so far in July in part because coal prices keep hitting fresh record
highs. That makes it uneconomic for some generators to use their coalfired
plants. The gas price increase came even though output was on
track to reach a record high in July and the ongoing outage of the
Freeport liquefied natural gas (LNG) export plant in Texas leaves more
gas in the United States. Freeport, the second-biggest US LNG export
plant, was consuming about 2 billion cubic feet per day (bcfd) of gas
before it shut on June 8. Freeport LNG estimated the facility will return
to partial service in October. Some analysts say the outage could last
longer. Front-month gas futures … For more info go to
https://on.mktw.net/3QbXwvR
US Supermajors Ramp Up LNG Portfolios
US supermajors Exxon and Chevron each touted a bullish outlook on
LNG in their second quarter wrap-ups. With an array of present and
future LNG projects, the two companies are ramping up their LNG
volumes. Exxon Ramps Up LNG Volumes Exxon, despite last month’s
landmark selection as a partner in Qatar’s North Field East project,
focused on other projects in the works. Gas began flowing at Coral South
LNG off Mozambique and the project remains on track to ship first LNG
later this year, the company said. Golden Pass LNG, which will increase
US Gulf Coast LNG capacity by 20%, remains on schedule to start up in
2024. Exxon said that among its corporate priorities is to maximize
output at existing facilities as a way to squeeze out incremental
production in today’s tight market at minimal cost/lead time. The
company… For more info go to https://on.mktw.net/3QbXwvR
This article is part of Daily Natural Gas Newsletter
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The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.
