Natural Gas News – September 17, 2020

Nat Gas News 9-17-20

The Latest Threat For China’s Natural Gas Demand

A drive to cut electricity prices for end-users has prompted Beijing to reduce gasfired power plant tariffs, which has threatened the survival of many of
them, Wood Mackenzie reports, adding to already substantial pressure on the industry from the ongoing trade war with the United States. “The new regulations will cause at least a 5 to 6 percentage point decline in the already poor margins of gas power plants,” said Wood Mac principal consultant Frank Yu. “Delivered fuel costs at most gas power plants have only declined by 10% to 13%, while revenues have been cut by 16% to 28% due to the new regulations. Most projects are now loss-making or barely breaking even.” For more on this story visit oilprice.com or click https://bit.ly/3mx3rhk

Germany Offered U.S. $1.2B To Save Nord Stream 2

Germany tried to dissuade the United States from following through on its threat to impose additional sanctions on the Russia-led gas pipeline project
Nord Stream 2 by telling the U.S. that it would support the construction of two liquefied natural gas (LNG) terminals with US$1.2 billion (1 billion euro), German weekly Die Zeit reported on Wednesday. According to Die Zeit’s investigation, German Vice Chancellor and Finance Minister, Olaf Scholz, wrote a letter to U.S. Treasury Secretary Steven Mnuchin in early August, promising a massive increase of public support for the construction of the LNG terminals, including by making 1 billion available, if the United States allowed Nord Stream 2 to be completed unhindered. Germany, the endpoint of Nord Stream 2, has been looking at the economic benefits of the project, while the U.S., including President Donald Trump, have been threatening sanctions on the project and even on Germany over its support for the project. For more on this story visit oilprice.com or https://bit.ly/3iFs6h7

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