Natural Gas News – March 22, 2022
Discounted LNG from Russia to cut costs of importers, users
Higher spot LNG prices have led to a decline in India’s import of the commodity since January compared with the year-ago period. However, with the war in Ukraine and economic sanctions on Russia, the price of Russian natural gas has dropped by over $10 per million metric British thermal unit (mmBtu) or about 29%, presenting a big opportunity for LNG importers and firms across sectors which use natural gas as feedstock or fuel. Companies that FE spoke to see a possibility of imports from Russia going up in coming months given the competitively cheap gas available there. The Russian LNG has turned cheaper than spot rates in major hubs after US and UK banned both Russian crude oil and gas, and shipping lines declined to insure the Russian cargoes. LNG prices are ruling at $39 per mmBtu in Asia. As against this, spot … For more info go to https://bit.ly/3L8bRHs
U.S. natgas up 4% on cooler forecast
U.S. natural gas futures gained over 4% to a near seven-week high on Tuesday on forecasts for cooler weather and higher heating demand next week than previously expected. The U.S. market also gained support from a 7% jump in European gas TRNLTTFMc1 prices that should keep demand for U.S. liquefied natural gas (LNG) exports at record highs as Europe looks for other suppliers to replace Russian fuel after Russia’s invasion of Ukraine. European gas TRNLTTFMc1 was trading about six times higher than U.S. futures. Front-month gas futures NGc1 was up 22.3 cents, or 4.6%, at $5.123 per million British thermal units at 9:30 a.m. EDT (1330 GMT), putting the contract on track for its highest close since Feb. 2. U.S. gas prices, however, remain mostly shielded from global prices because the United St… For more info go to https://bit.ly/3tEBiJq
