Nat Gas News – November 27, 2018

Get Your Natural Gas in Texas for 25 Cents, If You Can

Reuters reported: Next-day natural gas prices for Tuesday at the Waha hub in the Permian basin in Texas tumbled almost 80 percent to their lowest on record because of limits on the amount of gas that can move out of the region by pipeline. Prices at the Waha hub fell to an average of 25 cents per million British thermal units (mmBtu), according to SNL data available on the Refinitiv Eikon going back to 1991. Traders said small amounts of fuel were even sold at negative prices as producers struggled to get rid of the gas. That compares with an average of $2.16/mmBtu so far this year, $2.71 in 2017 and a five-year (2013-2017) average of $3.11. The Permian is the biggest oil producing shale basin in the United States and since gas is associated with much of the oil comes out of the ground, it is also the nation’s second biggest shale gas producing region, behind the Appalachian. For more on this story visit reuters.com or click https://reut.rs/2DXcS6F

Venezuela Rejected BP Bid to Buy Total’s Stake in Gas Block

Reuters reported: Venezuela’s oil ministry last month turned down a proposal by BP (BP.L) to buy Total’s (TOTF.PA) stake in a promising but inactive natural gas project along the maritime border with Trinidad and Tobago, five people briefed on the matter said. BP owns the rights to the Trinidadian side of the gas play. It could have used the output from the neighboring area, the Deltana Platform’s fourth block off Venezuela’s eastern coast, to feed its growing operations on the island, said the people, who were not authorized to speak publicly. The rejection highlights how Venezuela’s socialist government, often hostile to foreign companies, remains an obstacle to investment even as oil majors eye the OPEC nation’s barely tapped gas reserves to expand their liquefied natural gas (LNG) portfolios. The ministry told the parties the area’s reserves needed to be re-estimated, an argument it has used to reject other deals. For more on this story visit reuters.com or click https://reut.rs/2E2d84n