2021-12-15 12:50:00
U.S. GAS PRICES DOWN
REUTERS - Dec 14 - U.S. natural gas futures eased to a one-week low on Tuesday on forecasts for milder weather and less heating demand over the next two weeks than previously expected.
European gas prices, meanwhile, jumped 13% to a record high on worries about possible supply shortages this winter as Russian exports remain low. Rocketing European prices should keep U.S. liquefied natural gas (LNG) exports near record highs.
Front-month gas futures fell 4.7 cents, or 1.2%, to settle at $3.747 per million British thermal units (mmBtu), their lowest close since Dec. 7.
The premium of March 2021 futures over April 2021 slid to a record low of 6 cents per mmBtu. The industry uses the March-April spread to bet on the winter heating season when demand for gas peaks.
The industry calls the March-April spread the "widow maker" because rapid price moves resulting from changing weather forecasts have knocked some speculators out of business, including the Amaranth hedge fund, which lost over $6 billion on gas futures in 2006.Charts show the widow maker is now close to going into contango with summer contracts trading over winter contracts. Winter officially begins on Dec. 21 with the winter solstice.
Global gas prices were at record highs as utilities around the world scrambled for LNG cargoes to replenish low stockpiles in Europe and meet surging demand in Asia, where energy shortfalls caused power blackouts in China.
U.S. futures jumped to a 12-year high in early October but have retreated because the United States has plenty of gas in storage and ample production for winter. Overseas prices were trading about 10 times higher than U.S. futures.
Analysts have said European inventories were about 20% below normal for this time of year, compared with just 3% below normal in the United States.
Looking ahead, many analysts said milder-than-normal weather in December will cause U.S. utilities to leave enough gas in storage to allow stockpiles to reach above-normal levels in a week or two, the first above-normal storage levels since April.
Data provider Refinitiv said output in the U.S. Lower 48 states has averaged 96.51 billion cubic feet per day (bcfd) so far in December, just shy of November's monthly record of 96.54 bcfd.
Refinitiv projected average U.S. gas demand, including exports, would jump from 109.9 bcfd this week to 121.4 bcfd next week as the weather turns seasonally colder. Those forecasts were lower than Refinitiv's outlook on Monday.
The amount of gas flowing to U.S. LNG export plants has averaged 11.8 bcfd so far in December now that the sixth train at Cheniere Energy Inc's (LNG.A) Sabine Pass plant in Louisiana is producing LNG. That compares to 11.4 bcfd in November and a monthly record of 11.5 bcfd in April.
Pipeline data from Refinitiv showed that gas flows to Freeport LNG's export plant in Texas were on track to drop to 0.4 bcfd on Tuesday from an average of 2.0 bcfd over the past week.
-----
Earlier:
2021, December, 6, 12:35:00
U.S. LNG CANCELLED $10 BLN
Pembina Pipeline Corp has officially cancelled its US$10bn Jordan Cove LNG terminal in Coos Bay, Oregon (United States) after the company failed to secure state-issued permits and authorizations from various Oregon state agencies.
2021, November, 17, 13:15:00
U.S. CLEAN ENERGY LAW
The USD1.2 trillion package is a key part of the president's Build Back Better agenda and contains a total of more than USD62 billion for the US Department of Energy (DOE) to deliver a "more equitable clean energy future", including preventing the premature retirement of existing nuclear plants and investing in advanced nuclear projects.
2021, November, 10, 12:05:00
U.S. ENERGY CLIMATE INVESTMENT $1.2 TLN
The US House of Representatives has passed a US$1,200bn infrastructure bill.
2021, November, 9, 17:05:00
U.S. LNG INCREASE
Despite a brief Covid-related output dip, US LNG exports rose 31% in 2020 to hit an all-time high of 2.4 trillion cubic feet (Tcf).
2021, October, 22, 11:10:00
U.S. LNG GROWTH
Tepid production and strong global LNG export demand have helped to push NYMEX gas futures prices for the coming months beyond $5/MMBtu.
2021, October, 21, 15:15:00
U.S. LNG FOR CHINA
In 2018, China became the world's 2nd largest LNG importer in the world behind Japan. LNG imports amounted to 90.5 bcm in 2020 (+12%). Australia is the largest LNG supplier (44%), followed by Qatar (12%) and Malaysia (9%).
2021, October, 19, 12:20:00
U.S. ECONOMIC, ENERGY PLAN $3.5 TLN
The most immediate goal of the plan is to push the energy sector to reach at least 80% clean energy output by 2030.
