New England’s natural gas pipeline constraints, global supply chain issues tied to oil and liquefied natural gas (LNG) deliveries, and prolonged periods of cold weather this winter could keep the region’s electric utilities from accessing sufficient fuel to meet customer demand and trigger emergency actions, according to power grid operator ISO New England Inc. “As…
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China Cuts Another Long-Term Deal for U.S. LNG Supply from Cheniere
Cheniere Energy Inc. said Friday it has reached a deal with China’s Sinochem Group Co. Ltd. to supply 0.9 million metric tons/year (mmty) of liquefied natural gas (LNG) beginning in July 2022. The state-owned chemical conglomerate would buy LNG under the sales and purchase agreement (SPA) for a term of 17.5 years. Its purchases would…
Supply Chain ‘Snarls’ Stifle Economy, Stoke Inflation and Impede Energy Company Earnings
The worst of the pandemic’s impacts on public health may have passed, but its long shadow still hangs over the economy and the energy industry in the form of supply chain bottlenecks, labor shortages and steep inflation. Setbacks such as manufacturing disruptions in Asia and congestion at U.S. ports infuse indefinite uncertainty, energy company executives…
Exports, Industrial Sector Seen Driving U.S. Natural Gas Demand This Winter
A growing industrial sector and record-high export activity are expected to be key drivers of increased U.S. natural gas demand this winter, according to a leading trade group. Liquefied natural gas (LNG) exports are expected to grow by 16% over last winter, while pipeline exports to Mexico are expected to get an 18% boost, the…
Qatar Petroleum Inks 15-Year Deal to Supply More LNG to China
Qatar Petroleum (QP) is set to supply even more liquefied natural gas (LNG) to China starting next year under an agreement announced Wednesday. Under the sale and purchase agreement (SPA), QP would supply 3.5 million tons/year (Mty) over a 15-year term starting in January 2022 to the marketing subsidiary of China National Offshore Oil Corp.…
October Natural Gas Futures Skyrocket Ahead of Expiration, Reach New 2021 High
Natural gas futures sailed higher on Monday, rallying for a third straight session ahead of prompt month expiration and amid a potential global energy supply crunch. The October Nymex contract spiked 56.6 cents day/day and settled at $5.706/MMBtu. October rolls off the board as the prompt month at the close of trading Tuesday. November jumped…
LNG Market Seen Tightening Further With Little Relief in Sight as Winter Nears
This winter is shaping up to be one of the tightest in years for the global natural gas market as strong demand has continued throughout the year and left inventories woefully short. Liquefied natural gas (LNG) supply disruptions in Angola, Brunei, Nigeria and Trinidad and Tobago, to name a few, have also led to incremental…
LNG 101: Could New Ways to Sell American Natural Gas Give Rise to Second-Wave Export Projects?
U.S. liquefied natural gas (LNG) developers are going to greater lengths to attract customers, setting the stage for American supplies to increasingly be tied to foreign benchmarks and testing traditional commercial models with new agreements that could make project financing even harder to come by. The question is, why? Why would U.S. LNG buyers purchase…
Tellurian Finalizes Offtake Agreements for First Phase of Driftwood LNG
Tellurian Inc. on Thursday said it has secured enough offtake to support the first phase of its proposed Driftwood liquefied natural gas (LNG) export project in Louisiana after signing a deal with Royal Dutch Shell plc to supply 3 million metric tons/year (mmty). The project hasn’t been sanctioned yet, but the sale and purchase agreement…
PGNiG Inks Another Sempra Deal after Scrapping Texas SPA, Boosts LNG Offtake from Venture Global
Polish Oil and Gas Co., aka PGNiG, has scrapped one deal and signed another with U.S. developer Sempra related to North American liquefied natural gas (LNG) supply. The memorandum of understanding (MOU) announced Tuesday was signed after PGNiG canceled a previous sale and purchase agreement (SPA) to buy 2 million metric tons/year (mmty) of LNG…