Natural Gas News – June 22, 2023
Natural Gas News – June 22, 2023
US NatGas Futures Gain 4% on Output Decline, Hot Forecasts
U.S. natural gas futures gained about 4% on Wednesday on a drop in output in recent weeks and forecasts for hot weather through at least early July, especially in Texas. Prices rose even though the gas flow to U.S. liquefied natural gas (LNG) export plants will remain low due to maintenance work. In Texas, the power grid operator again projected electric use would break a record – this time on Wednesday – after forecast usage fell short of Tuesday’s all-time high as consumers heeded calls to conserve energy during an early summer heat wave. That increased power demand should boost the amount of gas generators burn since Texas gets about half of its electricity from gas. In 2022, about 49% of the state’s power came from gas-fired plants, with most of the rest from wind (22%), coal (16%), nuclear (8%) and solar…
Total’s Rio Grande Deal Shows US LNG Race is On
TotalEnergies’ significant offtake and ownership deal with US LNG developer NextDecade shows how oil and gas majors are banking on US LNG projects to offer flexible, destination-free supplies to a competitive global market. The framework agreement will see Total take a 16.7% stake in the three-train, 16.2 million ton per year first phase of the Rio Grande LNG project in Texas, as well as offtaking 5.4 million tons/yr of LNG for a 20-year period from the initial phase. The French major will also acquire a 17.5% interest in NextDecade itself for a total of $219 million in three tranches. The transaction will help NextDecade reach final investment decision (FID) on Rio Grande Phase 1, which the company is aiming to reach by the end of the second quarter — that is, before the end of the month …
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