A roundup of news and commentary from NGI’s LNG Insight

  • U.S. natural gas futures increased for a seventh day Tuesday, the longest stretch of gains in years amid oppressive heat and rolling blackouts in the Pacific Northwest. The August contract gained two cents to finish at $3.650.  
  • When gas hits the upper $3/MMBtu range, the ability to reduce gas use by substituting with coal-fired power generation is exhausted, according to EBW Analytics Group. The firm said even a steep price increase would free up minimal amounts of natural gas. Producers focused on capital discipline are also unlikely to react quickly. 
  • “Under these circumstances, if a significant gas supply deficit develops, prices could quickly rise to $4.50, $5.00 or even higher,” EBW said. “In an extreme but plausible...