Stream

Following a stream of industry announcements, Cambridge Energy Research Associates has now put its stamp on liquefied natural gas growth, predicting that the “fundamental” changes worldwide in natural gas availability and potential shifts in pricing, downstream markets and available capital will position LNG to become a “major global energy player over the coming 20 years,” with demand as much as tripling by 2020.

Following a stream of industry announcements, Cambridge Energy Research Associates has now put its stamp on liquefied natural gas growth, predicting that the “fundamental” changes worldwide in natural gas availability and potential shifts in pricing, downstream markets and available capital will position LNG to become a “major global energy player over the coming 20 years,” with demand as much as tripling by 2020.

Amid a steady and seemingly limitless stream of commercial buying, natural gas futures rallied for the second-straight session Monday, as traders priced in the first forecasts for hot weather in the eastern U.S. Breaking through several important technical levels to notch its daily high just moments before the closing bell, the July contract finished 25.7 cents higher at $4.179.

Amid a steady stream of non-commercial selling, natural gasfutures tumbled lower yesterday morning, renewing fears that themarket may not have reached a bottom and further losses arepossible. Plunging to its lowest level in more than three months,the April contract took the selling on the chin yesterday, falling15.7 cents to close at $5.006. Volume at Nymex was healthy with anestimated 56,626 contracts changing hands.

Because El Paso’s Eunice Natural Gas Processing Plant justupstream of the TGT compressor station in Acadia, LA, is not fullyprocessing the gas stream available this winter (like others inSouth Louisiana), TGT said it is having operational problems due todownstream gas having excessive liquids. It notified customers thatgas received at any point, including points upstream of the EunicePlant, must not have a hydrocarbon dewpoint in excess of 10 degreesFahrenheit. Receipts not meeting that specification may be rejectedin whole or partially, TGT said.

If new natural gas production does not come on-stream in Mexicoin the next two to three years, the country will have to importmore than half of its gas needs, according to a new report from thecountry’s energy regulator Comision Reguladora de Energia. Thecountry now imports about 7% of its gas, mostly from South Texas.

Pressured by a steady stream of local and fund selling, naturalgas futures slid lower yesterday amid an improving winter storageoutlook and continued mild temperatures across the nation. TheNovember contract took it squarely on the chin, dropping 25.2 centsto close at $4.82, almost a dollar below its Oct. 12 high.

Fueled by a steady stream of short-covering, natural gas futuresambled higher for much of the session yesterday before erupting inthe last 30 minutes amid a frenzy of market-on-close buy orders.That enabled the November contract to push through recent highsabove $3.10 and settle up 8.1 cents at $3.092. Strength was equallyimpressive in the new prompt contract, December, which finished up7.5 cents at $3.223. Estimated volume across all contracts washeavy, with 112,119 positions changing hands.