Natural Gas News- August 11, 2022

August 11, 2022

U.S. Natgas Futures Up 2% on Output Drop, Forecast for More Demand

U.S. natural gas futures rose about 2% on Tuesday on a preliminary drop
in daily output and forecasts for more demand this week than previously
expected due to an increase in pipeline exports to Mexico. That price
increase came despite forecasts for less hot weather over the next two
weeks that will reduce air conditioning use next week. Also weighing on
prices was the ongoing outage at the Freeport liquefied natural gas
(LNG) export plant in Texas, both of which leaves more gas in the United
States for utilities to inject into stockpiles for next winter.
EIA/GASNGAS/POLL Freeport LNG, the second-biggest LNG export plant
in the United States, was consuming about 2 billion cubic feet per day
(bcfd) of gas before it shut on June 8. Freeport expects to return the
facility to at least partial service in early October.… For more info go to
https://bit.ly/3bQT3QY

U.S. Natgas Output to Hit Record Highs in 2022 – EIA

U.S. natural gas production will rise to a record high in 2022, the U.S.
Energy Information Administration (EIA) said in its Short Term Energy
Outlook (STEO) on Tuesday. EIA projected dry gas production will rise to
96.59 billion cubic feet per day (bcfd) in 2022 and 100.02 bcfd in 2023
from a record 93.55 bcfd in 2021. The agency also projected gas
consumption would rise from 82.97 in 2021 to 85.16 bcfd in 2022
before sliding to 83.84 bcfd in 2023. That compares with a record
85.29 bcfd in 2019. The EIA’s latest supply projection for 2022 was
higher than its July forecast of 96.23 bcfd, while its demand projection
was lower than its July forecast of 85.85 bcfd. The agency forecast
average U.S. liquefied natural gas (LNG) exports would reach 11.16 bcfd
in 2022 and 12.68 bcfd in 2023, up… For more info go to
https://bit.ly/3bQT3QY

FEATURE: Europe’s Dash for New LNG Import Infrastructure Picks Up Pace

The scramble by countries across Europe to install new LNG import
facilities in record time continues to pick up pace, with FSRUs now
secured for deployment in a number of EU member states. The sharp
fall in Russian pipeline imports — and the prospect of flows from Russia
being cut further or halted completely — has led to plans to realize
numerous projects, both old and new, as quickly as possible. Most of the
plans are for floating LNG import facilities — known as FSRUs (floating
storage and regasification units) — which can be installed more quickly
than onshore, permanent import terminals. Some 25 new FSRUs are
expected to be installed across the EU in the coming years, according to
S&P Global Commodity Insights data, with the first facilities already
expected to be operational before the end of 2022. Proj… For more info
go to https://bit.ly/3bQT3QY