Coronavirus

Tellurian Inc. said Monday that its massive Driftwood LNG export project proposed for Louisiana is “shovel ready,” with construction targeted to start this year.

The coronavirus has upended the global liquefied natural gas (LNG) market, driving up freight rate volatility as an increasing number of cargoes are floating throughout Asia while others are being diverted.

North Dakota’s chief oil and gas regulator last Friday predicted that the indirect impact of the coronavirus on global oil prices and demand could be felt for the rest of this year by U.S. operators.

China said Tuesday it would offer tariff exemptions for hundreds of U.S. goods, including crude oil and liquefied natural gas (LNG), as part of efforts to ease trade tensions.

The International Energy Agency (IEA) has cut its oil demand growth forecast for the year as the coronavirus outbreak in China continues to take a toll on the global economy.

The global natural gas market is grappling with demand loss in China that’s resulted from the coronavirus outbreak, as spot prices in Northeast Asia have continued to tumble, more ships are idling, and buyers and sellers are trying to find a place for deferred cargoes.

The effect of the spreading coronavirus has so far been “marginal,” according to U.S. Energy Secretary Dan Brouillette, and longer term impacts depend in large part on the actions of the Chinese government.

Natural gas prices remain bogged down and, despite an expected upturn beginning in the second quarter, are likely to average only $2.21/MMBtu this year, according to the Energy Information Administration (EIA).

The outlook for liquefied natural gas (LNG) deteriorated on Monday, as the coronavirus continued to impact deliveries to China following a week in which the country’s largest importer declared force majeure and sent a bearish signal to an already oversupplied global market.