Natural Gas News – May 29, 2018

Natural Gas News – May 29, 2018

China’s Residential Natural Gas Price Hike to Ease Pressure on Upstream Producers, LNG Importers

Platts reported: China’s National Development and Reform Commission has announced plans to harmonize residential and industrial city-gate gas prices, as part of a push towards market liberalization that could see residential gas prices rise by as much as 20% by June 2019, according to an official statement released Friday. The harmonization will occur gradually, with a maximum upward price adjustment for residential city-gate prices of 0.35 Yuan/cu m in the first year. This will be the first time the NDRC has raised residential gas prices in eight years, a move that could boost domestic upstream natural gas supply and ease pressure on state-owned LNG importers such as PetroChina and CNOOC, recently faced with growing consumption and procurement costs. For more on this story visit platts.com or click https://bit.ly/2xu7sh4

Russia Just Won Big in the European Gas War

Oil Price reported: There’s been a lot of talk on both sides of the Atlantic about the U.S. pivot and efforts at locking in natural gas market share in Europe. Much of this comes amid President Donald Trump’s socalled American energy independence push as well as both U.S. and several EU members thrust to wean Europe off of geopolitically charged Russian gas. In fact, Trump has pushed for U.S.- sourced LNG to become so much of the EU’s energy security that several European states, particularly Germany, have accused the president of playing energy geopolitics, cloaking American concern for European energy security under the guise and to the benefit of U.S. LNG producers. Now, however, Trump and U.S. LNG exporters will have an even harder time convincing key EU members to offset overreliance on Russian piped gas with U.S. LNG. Last week, Gazprom, the world’s largest gas producer, and the European Commission resolved a seven-year anti-trust dispute. For more on this story visit oilprice.com or click https://bit.ly/2kzeyYd

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