Petronet plans to build an LNG import facility in India’s East Coast state of Odisha. A feasibility study for a 4 mtpa Floating Storage and Regas Unit (FSRU) at Golapur Port is in the making, chairman Tarun Kapoor said, but the project would compete with another East Coast terminal at Dhamra Port, proposed by GAIL and the Adani Group.
Lower gas-burn in the US power generation sector will drive down overall gas consumption this year and next. Though total gas use across all end-use sectors is set to rise slightly in 2022 from an average 82.5 billion cubic feet per day (Bcf/d) this year – still 0.7 Bcf/d less than in 2020, EIA figures show.
Liquefaction demand at US terminals will stay strong through end-October, Energy Aspects forecast given that Henry Hub gas prices for the winter strip (November-March 2022) are approaching $5 per million British thermal unit (mmBtu). Exports to Europe remain lucrative, analysts say, as long as prices at the Dutch TTF trading hub are above $18/mmBtu.
Fourth-quarter spot gas prices at the US gas trading benchmark Henry Hub will average $4.00 per million British thermal units (MMBtu), or above — a 16% rise from levels forecast in August by the US Energy Information Administration (EIA). The price increase reflects lost production from Hurricane Ida combined with growing gas-burn for power generation.
High prices and a slowing of China’s economic recovery reduce LNG imports in the second half of this year. LNG shipments surged much earlier in 2021 on the back of China’s swift rebound from the pandemic. But traders noted gas storage levels are not enough for the upcoming winter, so more buying activity is expected in October.
Production of associated gas from crude oil wells in the Permian shale has fallen after three years of steady growth as the Covid 19 pandemic depressed oil demand and production. Since 2020, the share of associated gas in all five US onshore crude oil-producing regions dropped 1.5% to just 37.7% of overall gas output.
West Burton Energy has been launched as a new independent power producer in the UK after the institutional investor EIG completed its acquisition of power gen assets from the French utility EDF Energy. The transaction includes West Burton B, a 1,332 MW combined-cycle gas turbine power station, and a 49 MW battery in Nottinghamshire, England.