Rising dry gas production in the United States will be sufficient to meet demand for power generation and exports at a lower price than forecast. With this assement, the U.S. Energy Administration (EIA) lowered its Henry Hub spot price forecast for 2020 by 20 cents to an average of $2.55 per million British thermal units (mmBtu).
Northwest European near-curve gas prices have fallen in recent days. With the TTF Oct-19 trading as low as 3.86 $/mmbtu, this low price drives up demand for LNG shipping to higher-priced markets in Asia. Energy Aspects says the TTF Oct-19 contract has already priced in much of the incremental demand from the power sector switching to gas from coal.
Nearly 16 gigawatt of utility-scale gas power generation has been added in Florida between 2008 and 2018 – the most in any U.S. state. The share of natural gas in Florida’s energy mix surged from 47% to 72%, and EIA analysts anticipate gas-fired generation will continue to displace less cost-competitive plants fuelled by coal and petroleum liquids.
Wind and solar power are forecast to outperform combined-cycle gas power plants in most parts of the United States on a levelized cost of energy (LCOE) basis through 2040. However, Wood Mackenzie finds that combined-cycle gas power stations beat renewables on cost in Florida, the Midcontinent and in some spots in PJM West where gas prices are exceptionally low.
Russia's Novatek and Japan’s Saibu Gas have signed a Heads of Agreement (HoA) to set up a joint venture to market LNG and natural gas to end customers. This agreement will include the development of gas-powered generation in Japan, bunkering business in Asia, and the construction and operation a new storage tank at the Hibiki LNG terminal.
Speculative orders for Floating Storage and Regas Units (FSRU) are on the rise as developers want to have the vessels ready for quick deployment once local regulators issue a permit for an LNG-to-Power project. There is a trend towards owing FSRUs rather than chartering the units, says Tor-Ivar Guttulsrød, director FSRU & FLNG at ABS Global Gas Solutions.
Headline numbers of India’s 350 MW gross installed capacity versus 180 GW in maximum load are misleading. The Brookings Institute finds that power plant outages due to fuel shortages or technical faults as well as grid-level power losses reduce the actual “recoverable surplus” to just 30 GW, sometimes less.
The U.S. fracking sector “disappoints yet again” is the bleak verdict of IEEFA’s second quarter earnings review of oil and gas companies. Only 11 of the 29 scrutinized companies achieved positive free cash flows, and together they generated $26 million free cash flows – “ too little” to dent their $100 billion in long-term debt.