Contracts

You need some serious tonnage to move vast quantities of super-chilled natural gas from one continent to another. The massive ships used to transport liquefied natural gas (LNG) add another element to the export trade that can’t be overlooked for those who want to better understand the market.

Despite prices that have cratered since last year and a steep cut in demand caused by the Covid-19 pandemic, global liquefied natural gas (LNG) supplies remain resilient and cargoes are still being delivered.

Tokyo Gas, Japan’s largest natural gas utility, is joining like-minded gas importers and plans to renegotiate long-term liquefied natural gas (LNG) contracts to remove restrictive destination clauses and increase flexibility.

Intercontinental Exchange Inc. (ICE) and Magellan Midstream Partners LP are adding dock capacity auctions for ICE Permian WTI crude oil futures contracts to facilitate exports out of the Houston area, the companies announced Wednesday.

General Electric unit GE Oil & Gas Wednesday said it has been awarded contracts to supply natural gas compression trains for Dominion Cove Point’s liquefaction project in Lusby, MD, which would give the existing import terminal export capability.

Mexico’s Petroleos Mexicanos’ (Pemex) exploration and production (E&P) unit has awarded contracts with a total value of more than $350 million to Empeiria Acquisition Corp. and subsidiary Integrated Drilling Equipment Co. Holdings (IDE) to build four 3000HP AC modular platform rigs, Houston-based Empeiria said Monday.

Cash gas prices fell 8 cents on average Thursday as traders noted a decline in forward-dated contracts and the ongoing sequence of forecast cold weather ended for the moment. Power prices also eased.

Over some industry opposition, the Colorado Oil and Gas Conservation Commission (COGCC) Monday approved final setback requirements for oil and natural gas wells. Industry representatives criticized the action as “going too far,” and potentially hurting the state’s economy.

Range Resources Corp.’s planned five-rig drilling program for 2013 in the Mississippian Lime, which was scheduled to start up early next year, already is under way based on encouraging results from a crop of wells in the Nemaha Ridge area, the company said Thursday.