Monday, December 23, 2024

Natural Gas Demand News

California sets clear course to close Aliso Canyon Gas Storage Facility

California's utilities regulatory agency on Thursday set out a clear path to potentially close SoCalGas Aliso Canyon's gas storage facility. The regulator prioritized energy reliability and affordability, as the state moves towards cleaner energy. In a press release, the California Public Utilities Commission said that it has set an annual peak natural gas demand of 4,121,000,000 cubic feet. This is the level at which Southern California will be able to meet its demand without Aliso Canyon. The regulator…

Prabowo wants to increase Indonesia's energy independence through biofuels and oil and gas reforms

Officials have stated that Indonesia's new Government aims to revitalize oil and gas production. They plan to reduce regulations, reactivate inactive wells, and increase output in producing assets to reverse a decades-long drop in output.The new president, Prabowo Subianto, took his oath on Sunday. He also plans to continue the efforts of the previous administration to exploit the massive gas finds in South Andaman, and to increase the use of biofuels.Indonesia, a former member of the Organization of the Petroleum Exporting Countries(OPEC), has seen its oil production fall to less than 600,000. barrels per day this year.

China's rapid electricification is hurting oil producers, says Russell

O Ver-estimating China's desire for crude oil has played a role in the oil markets, particularly by OPEC. This theme is likely to continue into future years. China is the leader in the transition to electric cars, having already reached 50% of new sales. The rest of the globe is expected to reach this level by 2030. According to this forecast (which is what the IEA calls the Stated Policies Scenario, or STEPS), the growth of EVs will displace around 6,000,000 barrels of crude oil per day. China becoming…

Snam Sees Limited Impact from Coronavirus on Targets

(Photo: Snam)

Italian gas company Snam can't reliably calculate the effects of the coronavirus pandemic on its business outlook but doesn't see any major impact, it said on Thursday."The company expects a limited impact on its economic targets and to the investment programme, proportional to the speed of recovery of operations," it said in a statement on first quarter results.Europe's biggest gas pipeline company has put in place emergency measures to ensure it can keep gas flowing during the virus outbreak.In its quarterly results statement…

China Expects Balanced Energy Supply/Demand

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China's state planner expects this winter's energy supply and demand to be generally balanced amid increasing natural gas output and liquefied natural gas (LNG) imports, state news agency Xinhua reported on Tuesday.Citing unidentified officials from the National Development and Reform Commission (NDRC), Xinhua reported natural gas demand from residential users will grow by more than 3.8 billion cubic meters (bcm) this winter as China enters a third year of a drive to replace coal with gas for use in winter heating.But the NDRC expects natural gas output to reach more than 170 bcm in 2019, up 11 bcm from last year.

Australia Set to be the King of LNG Exports

Australia is on track to surpass Qatar as the world’s largest LNG exporter, according to Australia’s Department of Industry, Innovation, and Science (DIIS).Australia already surpasses Qatar in LNG export capacity and exported more LNG than Qatar in November 2018 and April 2019, said a release from U.S. Energy Information Administration (EIA).Within the next year, as Australia’s newly commissioned projects ramp up and operate at full capacity, EIA expects Australia to consistently export more LNG than Qatar…

Dominican Republic Kicks Off Licensing Round

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The Dominican Republic's first oil licensing round will be a success if it awards more than two of the 14 blocks on offer this year, a government official said at an event disclosing the Caribbean nation's fiscal terms.The licensing round, which began on Wednesday with disclosure of contract terms, comes after Brazil, Guyana and Mexico attracted billions of dollars in oil investment. Cuba and Panama also have taken steps to attract producers with new contract terms, offering new areas, and by making seismic…

European Gas Prices Fall To 10-Years Low

European natural gas prices reached their lowest in at least a decade, fueled by a battle for market share between Russia, traditionally the continent's supplier, and the U.S., whose gas exports have gained momentum on the back of the shale boom.European natural gas prices are at a historical low and below the cost of shipping gas from the US to Europe. In May, prices remained just above this floor, fetching around $4.20 per million British thermal units (MMBtu).But this floor seems to be crumbling, if not collapsing…

Pavilion Acquires LNG assets of Iberdrola

Singapore-based LNG company Pavilion Energy said its wholly owned subsidiary Pavilion Energy Trading & Supply has agreed to buy Spanish energy company Iberdrola's portfolio of liquefied natural gas (LNG) assets.The portfolio comprises about 4 million tonnes per annum (mtpa) of Iberdrola's long-term LNG sale and supply contracts.It also includes long-term regasification of approximately 2 mtpa at the Grain LNG terminal (UK), regasification access in Spain and the Spanish-France border pipeline capacity, as well as the time-charter of a newbuild MEGI LNG vessel.

GasLog Predicts LNG Spot Rate Recovery

GasLog Partners, which owns, operates, and acquires liquefied natural gas (LNG) carriers under multi-year charters, said that the longer-term outlook for natural gas demand continued to strengthen in the first quarter of 2019.Despite LNG demand in the first quarter of 2019 being negatively impacted by warmer than usual weather in the Northern Hemisphere winter, global LNG imports during the period totalled 88 million tonnes (mt), compared to 79 mt in the first quarter of 2018, or 11% growth, according to Poten.In particular, China’s LNG imports totalled 15.3 mt, 24% growth over Q1 2018.

EIA: Azerbaijan Surges in Natural Gas

Azerbaijan is an important supplier of crude oil and natural gas in the Caspian Sea region, particularly to European markets, the US Energy Information Administration said in its report.The EIA’s report notes that Azerbaijan’s exports of natural gas are poised to become a more significant part of the country’s economy.Azerbaijan produced about 600 billion cubic feet (Bcf) of dry natural gas in 2017 and exported about 210 Bcf, according to EIA’s International Energy Statistics.“Azerbaijan is planning to expand its natural gas exports to Europe.

US Natural Gas Demand Nears Record High

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U.S. homes and businesses will likely use record amounts of natural gas for heating on Wednesday as an Arctic-like freeze blankets the eastern half of the country, according to energy analysts.Harsh winds brought record-low temperatures across much of the Midwest, unnerving even residents accustomed to brutal winters and keeping them huddled indoors as offices closed and mail carriers halted their rounds.That brutal cold could also temporarily reduce gas production by causing freeze-offs in the Marcellus and Utica shale…

ADNOC, Inpex in LNG Bunkering Pact

ADNOC Logistics & Services (ADNOC L&S), a wholly-owned subsidiary of UAE's ADNOC, has signed an agreement with Japan's Inpex Corp to collaborate on LNG bunkering activities.Under the agreement, ADNOC L&S and Inpex will explore opportunities for LNG bunkering in the UAE as well as the potential to jointly expand LNG bunkering activities to cover other regions, including Southeast Asia, said a press release from the Abu Dhabi-based integrated shipping and logistics company.The use of LNG as a fuel on non-LNG…

Global LNG Trade Jumps by 7.1%, Says Höegh LNG

The global floating liquefied natural gas (LNG) trade reached 236 million tonnes in the first nine months of 2018, up by 7.1% from the same period of 2017 on a combination of robust Asian demand and new supplies of LNG from Australia and the USA, said Höegh LNG.The provider of LNG transportation and services said that for the full year, LNG trade is expected to reach around 320 million tonnes, up by more than 7% from 2017.Increasing Chinese demand continues to be a key driver for expanding LNG volumes. LNG imports by China were 37.7 million tonnes during the first nine months of 2018…

China Becomes Top Natural Gas Importer

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China has overtaken Japan to become the world's top importer of natural gas, as Beijing's crackdown on pollution boosts its demand for the more environmentally friendly fuel, while the restart of nuclear reactors in Japan reduces its LNG imports.China's total natural gas imports over January to October this year via pipeline and as liquefied natural gas (LNG) were at 72.06 million tonnes, up a third from the same period last year, according to Reuters calculations based on General Administration of Customs data.Japan…

China Keeps LNG off Tariff List - for Now

China embroiled in festering trade dispute with United States even as Chinese imports of U.S. LNG expected to surge -Morgan Stanley. China's omission of liquefied natural gas (LNG) from its vast list of U.S. products that face hefty import duties from Friday has preserved a potential weapon should the trade war with Washington deepen. It also underscores Beijing's desire to ensure supplies of gas as it pushes to switch millions of households and businesses away from using coal as a key part of its 'war on pollution'. China will on Friday impose tariffs on $34 billion of U.S.

Winter Storm Threatens U.S. East Coast Energy Industry

The U.S. energy industry braced for a major test to refineries and power plants as an intense winter storm roared up the Atlantic Coast, bringing heavy snowfall and high winds to a region already beset with several days of extreme cold. The storm is the product of a rapid and rare sharp drop in barometric pressure known as bombogenesis, or bomb cyclone. Heavy snow pounded the East Coast along a front stretching from Maine as far south as North Carolina early on Thursday, knocking out power, icing over roadways and closing hundreds of schools. Prices for heating oil <HO-NYH> <HO-DIFF-NYH> and natural gas in the U.S.

Spain: Demand for Natural Gas Rises 9% in 2017

Demand for natural gas in 2017 has grown by close to 9% in Spain, compared to 2016, reaching 351 TWh. It is the third consecutive year of increased gas demand in the country. Industrial demand for natural gas, which accounts for close to 60% of the total demand, has shown a rise of 7%, in line with the positive evolution of the economy. Among the industrial sectors showing the highest growth in their gas consumption are metallurgy and construction. Natural gas demand for power generation has grown by 27%. The figure is influenced by low levels of hydroelectricity generation this year, down by approximately 48% compared to 2016.

China's LNG Woes Boost Coal, But for How Long?

A sure sign that China is struggling with its planned switch to natural gas from coal for winter heating is the spot price of Australian coal climbing back above $100 a tonne. Spot cargoes of thermal coal from Australia's Newcastle port , an Asian benchmark for the fuel used mainly in power plants, rose to $100.65 a tonne on Wednesday, breaching the triple-figure barrier for the first time since Nov. 1 and hitting their highest since mid-September. The price is also 9.2 percent higher than a recent low of $92.20 touched on Nov.

India's LNG Play Risks Eventual Shortages

India is planning to join the Asian rush to boost the use of natural gas over coal, a further sign that the liquefied natural gas (LNG) market will tighten faster than previously expected. India's state oil refiners Indian Oil, Bharat Petroleum and Hindustan Petroleum aim to raise the contribution of natural gas to between 5 percent and 15 percent of their incomes over the coming years, up from virtually zero currently. This is part of the government's target to boost the natural gas portion of India's primary energy mix to 15 percent by 2030, up from 6.5 percent now.