Natural Gas News – July 1, 2021

Natural Gas News – July 1, 2021

Global gas prices rally on hot summer, storage demand

Global prices for natural gas are at multi-year highs, with high temperatures driving up demand for power generation in the northern hemisphere for air conditioning and as traders in some regions replenish stocks ahead of winter. Prices for liquefied natural gas (LNG) cargoes delivered in Asia rose above $13 per million British thermal units (mmBtu) this week, highest for this time of the year since 2013, while Dutch wholesale and U.S. natural gas prices also rose to multi-year highs. “Post-lockdown demand recovery, together with a wide collection of exogenous hits to supply/trade flows worldwide, have lifted gas prices (year-to-date) in all key markets,” analysts from investment bank Liberum said in a note this week. June shipments to Japan climbed 18% from the previous month to a three-month high of 6.01 million… For more info go to https://reut.rs/3y9IKwP

Iraq to receive $360 mil World Bank loan

Basrah Gas Co. — a joint venture between Iraq’s state-owned South Gas Co., Shell and Mitsubishi Corp. — will receive a $360 million from the World’s Bank’s private sector financing arm to help OPEC’s second largest producer reduce gas flaring from its southern oil fields. The loan will partially fund the construction of a new gas processing plant, Basrah Natural Gas Liquid Extraction Plant, part of a broader expansion plan to reduce gas flaring in southern Iraq. BGC currently provides 80% of Iraq’s LPG demand. Iraq was the world’s second worst gas flaring nation after Russia in 2020, according to the World Bank. Baghdad is seeking to spend, with certain energy partners, $15 billion to boost its gas production, the country’s oil minister said May 3, as the country works on reducing reliance on Iranian energy impo… For more info go to https://bit.ly/2ThTjPJ

 

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