Nat Gas News – July 6, 2017

Nat Gas News July 6, 2017

AES finances natural gas, energy storage project in California

Electric Light & Power reports: The AES Corp. announced the closing of $2 billion in long-term, non-recourse financing for its 1,384 MW Southland repowering project in Southern California. The financing consists of $1,475 million of senior secured notes amortizing through 2040 and a $492 million senior secured term loan amortizing through 2027, with a combined weighted average cost of debt of about 4.5 percent. AES will contribute about $350 million in equity to finance the balance of the total project cost of $2.3 billion. Under the PPAs, one hundred percent of the capacity will be sold to SCE in exchange for a fixed monthly capacity fee that covers fixed operating cost, debt service and return on capital. In addition, SCE will reimburse variable costs and provide the natural gas and charging electricity. The gas-fired capacity will be constructed by Kiewit Power Constructors Co. For more on this story visit elp.com or click the following link http://bit.ly/2szW9kc

South Korea Is Very, Very Interested in U.S. Natural Gas

Reuters reports: The U.S. natural gas market has rebalanced with higher prices steadying production while reducing demand from electricity generators and making room for increased exports. Higher prices have averted the stock crunch many analysts feared in 2017 as a result of rising exports and the start up of a large number of new gas-fired combined cycle power plants. Higher gas prices seem to have arrested the slide in gas production, with output down by 4 percent compared with the previous year but showing signs of stabilizing. Storage injections have been broadly tracking the normal seasonal trajectory, especially once adjusted for the slightly warmer-than-average start to the cooling season. For more on this story visit reuters.com or click http://reut.rs/2thLiug

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