Natural Gas News – February 6, 2019

Natural Gas News – February 6, 2019

Exxon Plans $10 Billion Texas Natural Gas Export Terminal

The Hill reported: Exxon Mobil Corp. made a final decision Tuesday with Qatar Petroleum to build a $10 billion liquefied natural gas (LNG) export project on Texas’s Gulf of Mexico coast. Energy Secretary Rick Perry joined representatives of Exxon and Qatar Petroleum, the country’s state-owned oil company, to sign the deal Tuesday. The project would greatly expand the existing Golden Pass LNG terminal which was opened in 2010 on the Sabine Pass to import gas. The expanded terminal would have the capacity to produce about 16 million tons of LNG per year, chilling gas to -260 degrees Fahrenheit to increase its density and load it onto tankers for shipping around the world. Construction is due to take five years and employ about 9,000 construction workers. For more on this story visit thehill.com or click https://bit.ly/2WO2WCi

For Sale in Texas: Natural Gas at Record Low Price

Reuters reported: Next-day natural gas prices for Tuesday at the Waha hub in the Permian basin in West Texas tumbled almost 90 percent to a record low as demand declined with moderating weather and pipeline constraints limited the amount of fuel that can leave the region. Spot prices at the Waha hub collapsed to an average of just 21 cents per million British thermal units (mmBtu) for Tuesday. That fell below the contract’s prior all-time low of 25 cents in November and compares with an average of $2.13/mmBtu so far this year, $2.10 in 2018 and a five-year (2014-2018) average of $2.80, according to data available on the Refinitiv Eikon going back to 1991. Elsewhere in the region, next-day gas at the Henry Hub in Louisiana fell to $2.57/mmBtu for Tuesday, its lowest in almost a year as consumers turn off their heaters with temperatures in Houston rising into the 70s Fahrenheit (20s Celsius). The Permian is the biggest oil-producing shale basin in the United States and since much of that oil comes out of the ground with gas, it is also the nation’s second-biggest shale gas producing region, behind Appalachia in Pennsylvania, West Virginia and Ohio. For more on this story visit reuters.com or click https://reuters/2DVKIYh

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