US natural gas production has slowly recovered from a plunge in February when a record-breaking cold snap caused production freeze-offs at US oil and gas wells, sending wholesale electricity prices soaring. Texas suffered blackouts and fuel supply shortages, as the state’s gas production fell 4.3 billion cubic feet per day (Bcf/d), or 15%, to 21.5 Bcf/d.
Anatol Feygin, Chief Commercial Officer (CCO) at Cheniere Energy, is bullish on forward margins for LNG shipments this spring. Asian buyers are expanding regas terminals and pipelines, he noted, with gas-fired power generation set to become the second-highest growth segment in China, India and Southeast Asia after renewables in terms of capacity additions.
If the world takes decisive actions to limit global warming to 2°C by 2050, the scale of change is likely to unravel the energy industry. “Progressive electrification will squeeze the most polluting hydrocarbons out of the energy mix,” Wood Mackenzie says, forecasting oil demand will take a hit while gas demand remains resilient.
The rapid build-out of Philippine LNG import and power project puts many assets at risk of becoming stranded. The total investment in ports, LNG regas facilities, pipelines and power plants is estimated at over $13.6 billion (PHP 653.5bn), but much might be underutilized, analysts warned, as renewables become cheaper.