Natural gas pipeline capacity into the South Central region, the epicenter of anticipated demand growth from exports to Mexico and via liquefied natural gas (LNG) terminals, is expected to climb to 19 Bcf/d by the end of the year, according to the Energy Information Administration (EIA).
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Physical natural gas continued its trek higher Wednesday as temperature forecasts called for above-normal levels. Gains of about a nickel to a dime were widespread, with strength noted in Louisiana, Texas, the Midcontinent and Midwest. The NGI National Spot Gas Average added a stout 4 cents to $2.69.
Citing continued Gulf Coast demand growth driven by exports to Mexico and via liquefied natural gas (LNG), Boardwalk Pipeline Partners LP plans to place its South Texas transmission assets back into lean gas service, management said during a recent 2Q2017 conference call.
May natural gas is expected to open 2 cents lower Thursday morning at $3.17 as neither expected near-term weather or anticipated government inventory figures give much incentive to make incremental purchases. Overnight oil markets rose.
Japan’s Toho Gas Co. Ltd. struck a sale and purchase agreement with Mitsubishi Corp. unit Diamond Gas International Pte. Ltd. for liquefied natural gas (LNG) from Sempra Energy’s Cameron LNG LLC export terminal in Hackberry, LA. The agreement is for about 200,000 tons per annum at three cargos per year for 19 years beginning in 2019. The price is indexed to U.S. natural gas prices. Toho did not disclose what U.S. index was used. Cargos are to be delivered ex-ship, with the seller arranging transport. However, Toho said destination flexibility is allowed for by prior agreement between the parties. “We…strive for LNG procurement diversification, including diversification of the price-index, supply sources and types of contracts to ensure a stable energy supply to customers at a competitive price,” Toho said.
FERC on Thursday denied a request for rehearing of its December 2013 decision to deny Gulf South Pipeline Co. LP’s request to abandon pipeline facilities in Louisiana, Mississippi and Texas to affiliate companies.
A proposed 21.6-mile, 24-inch diameter natural gas pipeline to serve the B.L. England power plant at Beesley’s Point, NJ, and to increase service reliability in Atlantic and Cape May counties, “is reasonably necessary for the service, convenience or welfare of the public,” according to the New Jersey Board of Public Utilities (BPU), which has approved South Jersey Gas Company’s (SJG) petition for the project.
December natural gas is set to open 4 cents lower Monday morning at $2.33 as traders ignore any seasonal cooling tendencies and concentrate on weather forecasts still, on balance, void of any pervasive cold. Overnight oil markets rose.
Gulf South Pipeline Co. LP, a “web-like” interstate natural gas pipeline system bordering the Gulf of Mexico, has stirred up a firestorm among its myriad distributor and producer customers with its first new rate filing in 17 years, which includes higher rates and a new zone system.
Drilling has begun near a small town in central South Dakota to develop shale core samples as part of a research project between the South Dakota School of Mines & Technology and RESPEC, a Rapid City, SD-based engineering consulting company.