Natural gas prices could strengthen over the next 18 months to two years, but there are several reasons why a near-term pricing “pause” is likely, Credit Suisse analysts said last week.
Articles from Pause
Natural gas prices could strengthen over the next 18 months to two years, but there are several reasons why a near-term pricing “pause” is likely, Credit Suisse analysts said Wednesday.
Slowing demand and an existing surfeit of supply pipelines haven’t caused a number of major natural gas infrastructure projects in the West to pause or even slow down in their development, a panel of project backers told the LDC Forum Rockies & West Conference Tuesday in Irvine, CA. If anything, some of the proponents said they may have new capacity in place ahead of schedule.
After dropping 36 cents Monday and giving bulls pause, prompt-month natural gas futures resumed higher in trading on Tuesday. November natural gas, which goes off of the board Friday, popped back above $7 once again to record a high of $7.150 before settling at $7.091 — good for a 21-cent gain on the day.
Soaring construction costs are forcing producers to once again “pause” discussions with the Canadian government over the long-proposed Mackenzie Gas Project (MGP), an Imperial Oil Co. executive said Wednesday.