A combination of lower production estimates and hotter overnight forecast trends helped lift natural gas futures in early trading Wednesday. The August Nymex contract was up 14.5 cents to $5.668/MMBtu as of around 8:50 a.m. ET. A day/day drop in production estimates of around 1.6-1.9 Bcf/d was “providing fundamental cover” for higher prices as of…
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August Natural Gas Futures Flounder as Forecasts Call for Easing Heat; Cash Prices Climb
Natural gas futures slipped lower Tuesday, extending the extensive sell-off from a week earlier. A mid-July reprieve from oppressively hot weather patterns and the potential for another stout storage print weighed on prices. The August Nymex gas futures contract settled at $5.523/MMBtu, down 20.7 cents day/day. September fell 22.5 cents to $5.487. With heat scorching…
European Natural Gas Prices Surge to Four-Month High on Supply Squeeze – LNG Recap
European natural gas prices hit their highest point in months on Tuesday, extending a series of gains as the continent continues to face the threat of supply shortages on a number of fronts. A prolonged shutdown of the Freeport liquefied natural gas (LNG) export terminal in the United States, reduced flows from Russia on the…
More Permian Natural Gas Headed to Gulf Coast and Beyond with Expansion Sanctioned
Permian Highway Pipeline LLC (PHP) sanctioned a 550 MMcf/d natural gas expansion project to boost capacity for the 2.1 Bcf/d West Texas to Gulf Coast system. Using additional compression, the final investment decision (FID) would boost deliveries from the Waha area of West Texas to mainline connections near Houston and Gulf Coast markets. Pending required…
NextDecade Nets 1 MMty Contract with China Gas, Continuing ‘Acceleration’ of Offtake Agreements
NextDecade Corp. announced its third long-term contract with a Chinese company for liquefied natural gas (LNG) offtake as it prepares to possibly sanction the first two trains of its Rio Grande LNG project this year. Houston-based NextDecade disclosed Tuesday it has clinched a 1.0 million metric ton/year (mmty), 20-year sales and purchase agreement (SPA) with…
Moderating Heat by Mid-July Helps Pressure Natural Gas Futures Lower in Early Trading
In the aftermath of last week’s heavy sell-off, natural gas futures were trading lower early Tuesday as forecasts shed cooling demand over the weekend. The August Nymex contract was off 35.5 cents to $5.375/MMBtu as of around 8:45 a.m. ET. The outlook for the natural gas market was “surprisingly stable” over the extended Fourth of…
Natural Gas Forwards Free Fall on Prolonged Freeport LNG Outage
As demand destruction from the Freeport liquefied natural gas (LNG) terminal outage continued to loosen balances, strong summer heat failed to prevent natural gas forwards from falling during the June 23-29 trading period. Fixed prices for August delivery at benchmark Henry Hub tumbled 37.4 cents during the period to average $6.499/MMBtu, NGI’s Forward Look data…
Russia Moves for Control of Sakhalin-2 LNG, Jeopardizing Foreign Ownership Stakes
Russia is moving to further tighten its grip on the nation’s oil and natural gas supplies, issuing a decree for the country to take over the Sakhalin-2 liquefied natural gas (LNG) export project on Sakhalin Island north of Japan. An executive order signed by Russian President Vladimir Putin to “protect the national interests” calls for…
Long-planned Alaska LNG Project Wouldn’t Increase Greenhouse Gas Emissions, DOE Says
The Alaska liquefied natural gas (LNG) terminal project would not have an impact on greenhouse gas (GHG) emissions if constructed, according to the latest analysis from the Department of Energy (DOE). DOE in late June published its draft supplemental environmental impact statement (EIS) for the Alaska LNG project (DOE/EIS-0512-S1). Researchers found that with mitigations already…
LNG Market Volatility Continues as European Supply Risk Grows
MADRID (ICIS) – Spot LNG prices in Asia rose on 30 June but remained at a discount to the European TTF, following the highest TTF front-month price since 9 March.