Markets

The US Energy Information Administration (EIA) says growing LNG trade could support the development of an Asian LNG benchmark.

The world's biggest LNG buyers are clubbing together in an attempt to secure more flexible supply contracts in their negotiations with producers. Flexibility is becoming critical for many LNG buyers, as the rise of solar capacity makes consumption of LNG more seasonal.

Shell says its QGC joint venture in the Australian state of Queensland is to drill up to 161 additional wells - a move that enables further supply for both domestic customers and exports. The announcement comes just over a week after Australia’s Prime Minister Malcolm Turnbull threatened to curb LNG exports unless big producers did not provide more gas for the domestic market.

Intercontinental Exchange (ICE) is launching its first-ever US LNG futures contract in May, as exports from the US begin to rise sharply.

Cheniere has filed a request with the US Federal Energy Regulatory Commission (FERC) to begin the commissioning process of its fourth liquefaction train at the Sabine Pass LNG project in Louisiana.

The UK Government has given approval for the development of a major new gas storage and balancing facility in Cheshire.

Centrica has won approval to reduce the minimum capacity of the UK’s biggest gas storage facility to zero.

The rise in oil prices from last summer onwards is now filtering through to Russian contract gas prices, while at the same time LNG prices and European benchmarks are falling – making Russian gas less competitive and increasing the likelihood of large volumes of LNG moving to Europe. The trend comes after a period of record Russian gas imports to Europe, coinciding with low gas prices linked to crude’s earlier weakness in 2015 and the first half of 2016.

French energy company Engie has sold its British shale gas interests to petrochemical producer, Ineos, for an undisclosed sum, the companies said on March 9th.

According to the US Energy Information Administration’s (EIA) latest Natural Gas Production Report, natural gas gross withdrawals in the Lower 48 states fell in 2016, averaging 80.39 billion cubic feet per day (Bcf/d) - or 1.03 Bcf/d (1.3%) lower than in 2015.

Utilization of UK gas-fired capacity averaged close to 14GW in February, down from 17.8GW in January, with its role in the generation mix falling from 45% to 38% - largely due to higher wind, especially in the second half of the month, along with a recovery in French imports.

Wednesday, 08 March 2017 07:50 / Markets

UK receives LNG from Peru and Dominica

An end-of-winter slew of LNG arrivals to the UK includes the first ever cargoes from the Dominican Republic and Peru.

German gas production fell by 8.1% to 7.9 bcm in 2016, down from 8.6 bcm in 2015, according to industry association BVEG, which released the figures on March 2nd. German gas producers have been trying to maintain production, but face dwindling conventional reserves.

The US maintained record levels of liquefied natural gas (LNG) exports in February, with a total of 15 cargoes headed overseas, according to the US Energy Information Administration (EIA). The number follows on from record high levels in the previous two months.

Monday, 06 March 2017 08:15 / Markets

BP buys into biogas

BP has brought into the biogas sector, snapping up Clean Energy Fuels Corp's biomethane production assets for $155 million on March 1st. The move further expands its gas supply portfolio in the US and reflects a strategic shift toward less carbon-intensive projects.

BP said in a strategy update on Feb 28th that it was exploring new investments in low-carbon forms of energy, a part of the industry in which it sees significant future business potential.