Pipeline & Gas Journal’s Post

🔔 Natural Gas Rises Toward 1-Year High ! US natural gas futures rose to above $3.4 per MMBtu on Thursday, approaching the one-year high of $3.5 tested in December as bets of stronger global LNG demand magnified robust domestic consumption. Uncertainty on whether Europe will continue to receive Russian gas flows through Ukraine drove investors to take long LNG positions as EU members search for alternative gas sources. This raises demand for US LNG at the turn of the US presidency, with President-elect Trump stating that his administration is against holding back on LNG export permits, driving firms to favor more profitable exports instead of cheaper gas sales domestically due to the ample supply in the US. In the meantime, new data from the EIA showed that domestic natural gas consumption is set to break a new record in 2024, largely due to higher demand from the electric power sector. Investors now await weekly storage data from the EIA, set to show an extension to the anticipated drawing season that started last month.

LNG imports are struggling to make inroads in Central and Southeastern Europe as plentiful and cheap Russian piped supplies hamper the region’s diversification efforts. While regional gas importers have indicated interest in entering long-term LNG supply contracts, so far little progress has been made in firming up those talks into binding agreements, with insufficient pipeline capacity and high spot LNG prices presenting a major hurdle for buyers. Full story: https://lnkd.in/dX6W54cx Energy Intelligence #LNG #LNGTrade #natgas #energymarkets #commodities #Russia

Dependence on Russian natural gas growing fast, as LNG imports tank

Japan has been the diamond standard for LNG buyers not so many years ago. That was before China and the giant sucking sound coming from it emerged on the market. That was also before Europe woke up to the urgent need for super-chilled gas to replace piped gas from Russia. That was also before LNG went beyond being only a source of power and heat. 15 years ago, when you had LNG to sell you knew that if a Japanese buyer showed up, it was not going to get a lot better. Today, sellers have a lot more options. Buyers don't like that. Welcome to the bottom of the world. https://lnkd.in/dFjcGTan

The strength of the recovery in European natural gas demand this year will determine how much gas and LNG imports will be needed in the next quarter, but record storage levels will weigh on import needs... Learn more >> https://bit.ly/3xCOPql #natgas #LNG #gaspipelines

LNG has a 100 year role to play for powering the globe and those without natural gas resources. This was a disservice to American interests and our global allies and it never should've happened. Blatant political pandering. Permits should be a simple regulatory process and not a political tool. If you don't want LNG to happen, then use the democratic process and legislate it. Otherwise, deal with it. Another example of self-inflicted wounds to our national interests and prosperity. Comically, Russian LNG deliveries to Europe have increased since the Ukraine war started. Talk about a diktat that missed the mark. #TraditionalEnergy #OilAndGas #LNG #AllOfTheAbove

Russian gas flows to Europe may recover In the first eight months of 2024, Russian pipeline gas exports to Europe grew by 3 bln cubic meters, seeing a 11% rise from January-August of 2023, according to the Gas Exporting Countries Forum’s latest monthly gas market report. Russian gas imports increased as European purchases of liquified natural gas (LNG) from the United States and LNG consumption in Europe fell. Besides, there are increasingly more reasons for Europe to question the reliability of the US as a gas supplier. Valdis Plyavinsh, senior analyst at Yakov and Partners think-tank, explains that, in 2023, the consumption of natural gas to generate electricity exceeded 920 bln cubic meters in the United States and may rise by another 130-140 bln cubic meters. Such a significant increase in domestic demand could impact the US LNG industry. Meanwhile in Russia, gas consumption will grow mostly as domestic gas supply projects, the production of natural gas motor fuel and chemical utilization of natural gas develop, Deputy General Director of the National Energy Security Fund Alexey Grivach said. According to Plyavinsh, a rapid growth in energy demand from the IT sector in Russia is less likely as this market is smaller compared to that in the United States. The two markets differ in terms of structure, too. #business #finance #financialservices

“From a “golden age of gas” to “a golden age of LNG”?.. 🔥 🔥 🔥 If the image and ‘role’ of gas has not been immune by the crisis triggered by Russia invasion of Ukraine, the LNG chain seems to live a season of prosperity. A key driver is of course the need for Europe – a massive gas importing region – to replace piped gas from Russia with other sources. While key partners like Norway and Azerbaijan came at rescue, LNG gained important market shares and becoming key into continent needs.   As stated in the new report from International Gas Union out today (on their website), the LNG sector benefits of several favourable factors, including #innovation and technology developments as well as growing distances from gas-thirsty emerging markets and a growing number of suppliers.   What is quite striking is not the level of increase in global LNG trade of latest year, but prospects in terms of liquefaction capacity expansion. Numbers speak for themselves: if total liquefaction capacity today is just short of 500 MT/year, the proposed capacity in pre-FID stage exceeds 1000 MT/year !! Of course not everything will see the light of the day, but a massive wave of new LNG is set to come in the market soon, with US sets to reinforce its role of world’s largest LNG exporter and thers to grow substantially.   It is evident that gas industry remains to address its own homework, including the urgent need to help reducing flaring as well as cut methane emissions that are both quite an environmental tragedy. Those are key challenges in front of a (potential) ‘golden age for LNG’…       #energy #sustainability #data #future

LNG is not the golden age of clean energy. Do not believe the BS. LNG may look good with compelling BS marketing but is just another climate and public health devastating fossil fuel that fills our the atmosphere with filth. Evolution is the boss and the fossil fuels and munitions industries are on borrowed life cycle time. The fact is humans make nature sentient and our AI will help us reach the order demonstrated each time the Earth turns, and the Sun rises. Avoid combustion in both energy and politics. #energytransition and #energyindependence are requirement of global #peaceandprosperity

"Texas’ LNG exports to Europe – 6.8 billion cubic feet per day in FY23 – reached a record high of 8.1 bcf/d in October 2023. At the same time, natural gas prices at Henry Hub, Louisiana, fell as low as $1.52 per million btu (mmbtu) in mid-February 2024, marking the lowest real prices for the month on record since 1994." I think the U.S. has plenty of Natural Gas to go around. #TraditionalEnergy #NaturalGas