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Asian spot prices for liquefied natural gas (LNG) slipped this week tracking a fall in European gas prices though traders anticipate prices to bottom out soon ahead of peak winter demand. Spot prices for September delivery to Northeast Asia are estimated to be about $4.60 per million British thermal units (mmBtu), down 10 cents from last week, trade sources said. Prices for cargoes delivered in August are estimated to be $4.20 per mmBtu, down 20 cents from last week, they added.
Asian spot prices for liquefied natural gas (LNG) slipped this week tracking a fall in European gas prices though traders anticipate prices to bottom out soon ahead of peak winter demand. Spot prices for September delivery to Northeast Asia are estimated to be about $4.60 per million British thermal units (mmBtu), down 10 cents from last week, trade sources said. Traders are likely waiting for the European gas prices to come down before taking a position on LNG, a Singapore-based industry source said.
Natural gas finally has broken out of the tight trading range it’s been stuck in for the past six months. Cheaper gas prices “will boost coal-to-gas switching in the power sector and tighten U.S. balances, limiting supply available” to increase storage levels, predicts Richard Redash, head of global gas planning at S&P Global Platts. Warm temperatures in April and a relatively cool May led to a record cumulative April-May U.S. storage build of about 855 billion cubic feet, and June was considerably cooler than that month had been a year earlier, says Redash.
U.S. Gulf of Mexico offshore crude oil production and natural gas output both remained cut by 19% on Thursday because of shutdowns forced by Tropical Storm Barry, the U.S. government said. A total of 60 offshore production platforms, or 9%, remain unstaffed after the storm's passage, the agency said.
Australia's No 2 independent gas producer Santos Ltd said on Thursday it had clocked record gas production in the second quarter on stronger output across its Western Australia gas assets. Santos now expects annual sales of 90-97 mmboe and production of 73-77 mmboe. Santos also realized lower prices over the quarter.
A small-scale Canadian liquefied natural gas (LNG) plant has signed the country's first binding supply agreement with China, ahead of much larger deals expected to be finalised with operators of bigger new terminals. Privately-owned FortisBC agreed with China's Top Speed Energy Corp to supply 53,000 tonnes from its Tilbury facility in British Columbia as of 2021 for two years. Terminals with export capacity of 24 million tonnes a year (mtpa) are planned in British Columbia by Royal Dutch Shell, Chevron and Pacific Oil & Gas, targeting Asian buyers.
Natural-gas prices declined for the second straight day on signs that producers will continue to push output to new highs, while forecasts that the current heat wave will dissipate threatened demand.
U.S. LNG exports are expected to rocket to over 100 billion cubic meters (bcm) in 2024, dislodging current market leaders Australia and Qatar, Peter Fraser, Head of the Gas, Coal and Power Markets Division at IEA, said on Tuesday. China's LNG imports, meanwhile, are expected to surge to over 100 bcm in 2024, topping those of current world leader Japan.
More than half the daily crude production in the U.S. Gulf of Mexico remained offline on Tuesday in the wake of Hurricane Barry, the U.S. drilling regulator said, as most oil companies were re-staffing facilities to resume production. Bureau of Safety and Environmental Enforcement (BSEE) said 1.1 million barrels per day (bpd) of oil, or 58% of the region's total, and 1.4 billion cubic feet per day (cfd) of natural gas output remained shut. BSEE also said 171 production platforms, or 26%, have not resumed operating, down from 267 platforms on Monday.
There are adequate oil supplies in the market to compensate for lost oil imports from Iran, Indian oil minister Dharmendra Pradhan said in New Delhi on Tuesday. India halted imports from Iran after the United States' May withdrawal of exemptions that allowed eight nations, including India, to import crude from Iran despite sanctions against the Middle East producer. The minister also said the government has asked Gail (India) Ltd, India's biggest natural gas utility, to form a plan to separate its gas marketing and transmission business.
The "Freddy Krueger" scenario for the crude oil and product tanker owners has always been lower global demand growth, whether via some worldwide economic collapse or a game-changing cost breakthrough for non-fossil fuels. The investor pitch for tanker equities in 2019 is that capacity growth is slowing just as the IMO 2020 rule – which will cap marine fuel and emission sulfur content – is nigh. On July 9, the U.S. Energy Information Administration (EIA) cut its estimate for 2019 global oil consumption for the sixth month in a row, and emphasized that demand growth in China is increasingly shifting towards natural gas liquids (NGLs), which are carried on liquefied petroleum gas tankers, and "away from transportation fuels such as gasoline and diesel," which are carried on conventional tankers.
The Indian government will introduce rules in six months that could lead to the phase-out of monopolies controlled by natural gas distribution companies in 34 cities, including New Delhi and Mumbai, allowing consumers to choose a new supplier, a senior regulatory official said. In 2009, India's Petroleum and Natural Gas Regulatory Board (PNGRB) gave exclusive gas marketing rights, initially for five years, to companies who had established gas distribution networks in cities across the country as a way to recover their costs along with exclusive rights to use the networks for 25 years. The move could affect the business of GAIL (India) Ltd, formerly known as Gas Authority of India Ltd, the biggest gas distributor in the country.
Investing.com - Oil prices dipped on Tuesday as oil rigs in the Gulf of Mexico prepared to restart production following Hurricane Barry, while fresh evidence of rising U.S. output weighed ahead of weekly inventory data.
Recently announced plans to foster competition in the Brazilian natural gas market may trigger a wave of privatizations among state-controlled distribution companies, luring international and domestic bidders, experts on the sector say. Brazil's Cosan SA and Spain's Naturgy Energy Group SA, are among the companies potentially interested in the segment, which also include Portugal's Galp , France's Engie and Spain's Repsol , consultants, lawyers and other experts said. The plan to overhaul Brazil's domestic natural gas market, approved by Brazil's energy policy council in late June, calls for companies with a "dominant position" to sell all of their stakes in distributors.
With soybeans extending losses around 8.960, it is now trading 1.26% negative in the day. Next support will be the 20-day moving average at 8.917, and then the 200-day moving average at 8.765. Below, July 9 low at 8.660 is the area to focus.
Abu Dhabi National Oil Company (ADNOC) has hired Bank of America Merrill Lynch and Mizuho to arrange the lease of its natural gas pipeline assets, sources familiar with the matter said, as the oil giant establishes new partnerships in an era of lower oil prices. ADNOC, which manages almost all of the proven oil reserves in the United Arab Emirates, has embarked on a major shake-up over the past two years to cut costs, boost efficiency and monetise its assets. The company is now looking to raise funds by leveraging its natural gas pipelines in a similar deal and has mandated Bank of America Merrill Lynch and Mizuho as transaction advisers, two sources familiar with the matter said.
European gas hub prices have risen above the price of liquefied natural gas (LNG) on the Asian spot market in a rare occurrence that largely rules out arbitrage of LNG cargoes from the Atlantic to the Pacific basins. Dutch and British month-ahead gas prices exceeded Asian spot LNG in April for the first time in four years.
SINGAPORE/BEIJING (Reuters) - China's crude oil throughput rose to a record in June, up 7.7% from a year earlier, following the start-up of two new, large refineries, official data showed on Monday. Crude processing volumes last month reached 53.7 million tonnes, or about 13.07 million barrels per day (bpd), beating the previous record in April of 12.68 million bpd, according to figures from the National Bureau of Statistics (NBS). Private firm Hengli Petrochemical ramped up its 400,000-bpd refinery in Dalian to full capacity in late May and Zhejiang Petrochemical began trial runs at a similar-sized facility on the east coast.
(Bloomberg) -- European coal contracts are advancing after rival fuel natural gas rebounded from its lowest level in almost a decade.Should gas continue its sharp recovery, coal suppliers will anticipate extra demand for their cheaper, dirtier fuel, according to analysts. A major hurdle to that increased consumption will be the continued advance of European Union carbon permits, contracts that finished last week at their highest level in 11 years.“European gas prices are recovering strongly, thus lifting the chance of higher coal burn down the road,” said Hans Gunnar Navik, a senior analyst at StormGeo AS, a weather service provider for the energy industry. Buttressing coal’s gain are continued problems in the industry’s supply chain, which have hampered deliveries, as well as strong demand in Asia, he said.The use of coal in Europe for power generation has dropped this year as gas’s plunge and the surging carbon permits hurt its competitive position. Governments are considering deeper cuts in the region’s emissions target for 2030.In Europe’s biggest market in Germany, coal power output has dropped an average 29% so far this year, to the lowest level for the season for at least three years, according to data from the European Energy Exchange AG. Generation at stations powered by dirtier lignite coal is down 22%, while output at cleaner gas plants has almost doubled.Northwest-Europe coal for next year has now risen in four of the past six weeks, with Friday’s weekly close the highest since May 17, according to data from ICE Futures Europe in London.Continued recovery is no sure thing. The front-year contract was up as much as 3% last week, before succumbing to carbon allowances.Earlier in the year, the contract had been driven lower by a combination of factors including high stockpiles in Europe after a mild winter, and China easing up on imports. The recovery has been helped by freight rates, which have more than tripled since February to their most expensive level since 2014.Globally, the coal industry’s inventory levels are continuing to fall, which will probably “continue to support the ongoing recovery in prices,” said Hui Heng Tan, an analyst at broker Marex Spectron Group Ltd. Recent coal-supply increases seem to be abating, which could provide “a floor” for prices.To contact the reporters on this story: Mathew Carr in London at email@example.com;Jeremy Hodges in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Reed Landberg at email@example.com, Cecile Gutscher, James AmottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The gas platform for the Leviathan natural gas field is on its way to Israel from the Gulf of Mexico, the partners in the project said on Sunday. In September, all the units will be installed on the jacket of the platform already in place 10 kilometres from Israel's shore. Earlier this month, testing of a subsea natural gas pipeline to Egypt was completed, in the wake of a deal to export $15 billion in gas to a customer in Egypt.
With just over a year to go before he faces reelection, Trump takes credit for the most vigorous economy in the industrialized world, with the expansion entering its 11th year and historically low unemployment. Last month, a national survey of manufacturing activity hit its lowest level in nearly three years -- narrowly avoiding slipping into contraction -- while regional surveys have also seen record declines.
Uzbekistan is planning to privatise its oil and gas firm, Uzbekneftegaz (UNG), by 2024 as part of a strategy to boost gas output, the nation's energy ministry said on Friday. "...Measures are to be taken to attract investment in Uzbekneftegaz by primary and secondary public placement of up to 49% of shares no later than 2024," it said in a statement. Uzbekistan produces about 60 billion cubic metres of gas a year and exports it via pipelines to Russia and China.
Investing.com - Oil prices were on track for a sharp weekly gain as concerns over Tropical Storm Barry hitting supply outweighed worries of a global supply glut in the making.