Natural Gas News – January 24, 2018

Natural Gas News – January 24, 2018

Brazos Midstream to Gain Third Honeywell Cryogenic Plant

Gas World reported: The high-recovery 200 million cubic foot per day (MMcf/d) plant, called Comanche III, will extract valuable natural gas liquids (NGLs) from natural gas produced in the Southern Delaware Basin in Texas. Included with the plant, Honeywell will provide engineering, fabrication and supply of a modular cryogenic NGL recovery unit. This new plant follows two earlier plants that also were customised specifically to handle the unique gas composition in the Basin. Cryogenic gas processing plants cool the gas in a demethanizer column until the more valuable NGLs precipitate into a liquid. These heavier components extracted from the natural gas can be used as fuels, fuel blending components and other valuable petrochemicals. For more visit gasworld.com or click http://bit.ly/2Dy0070

U.S. Natural Gas Bears Caught by Return of Winter

Nasdaq reported: U.S. natural gas prices have bounced sharply from their lows in December after a spell of exceptionally cold temperatures pushed stocks near to the bottom of their five-year range. The tightening calendar spread, with prompt prices rising much faster than those for deferred contracts, is consistent with a market that is undersupplied and trying to conserve remaining stocks. Rising near-term prices should discourage gas consumption by electric generators in favour of coal while sending a signal to gas producers to increase drilling and output. Gas stocks have been tightening progressively for 10 months, turning a surplus of 400 billion cubic feet (bcf) to the five-year average in March 2017 into a deficit of 200 bcf by the end of the year. In reality, the winter so far has been colder than the previous abnormally warm winters in 2015/16 and 2016/17 but heating demand has been in line with the long-term average. For more on this story visit nasdaq.com or click http://bit.ly/2F8kFe2

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

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