Henry Hub seen rebound to $3.08 in 2019
Dry gas production in the U.S. is about to reach a record of 81 Bcf per day, spurring LNG exports and pushing down prices. Henry Hub is seen average $2.99/MMBtu for the full year 2018, but notch up to $3.08/MMBtu in 2019.
Buyers pay above variable cost for US LNG
Several LNG buyers seem happy to pay a premium for supply from Australia and the U.S. Forward prices, imply Asian LNG buyers pay above the variable cost of U.S. LNG delivered ex-ship which, according to S&P analysts, “is not what you would expect in an oversupplied market.”
Goldman Sachs in talks to ship LNG cargo
Goldman Sachs GS 0.81% Group was thought to be in talks with Cheniere Energy to buy a cargo of LNG.
US LNG exports to China slump
US LNG exports to China fell in July to their lowest level in a year and are expected to decline further as the Sino/US trade dispute forces utilities to seek alternative supplies.
Junker says EU would ‘build more LNG import terminals’
Seeking to accommodate U.S. President Donald Trump’s demands for greater LNG sales to Europe, the European Commission President Jean-Claude Junker has said the EU would build more LNG import terminals. However, this does not mean imports will increase as the JKM-TTF spread has stayed wide enough over the past year for US cargoes to get a higher netback going to Asian than Europe.
Imported LNG helps Pakistan save up to $3bn in fuel costs
Running the new efficient power stations on LNG helps Pakistan save between $2 billion and $3 billion in fuel costs. Pakistan LNG sources cost-competitive spot LNG cargoes for the three new combined-cycle plants – the Balloki, Haveli Bahadur Shah and Bhikki CCGTs.
Rostec launches LNG power plants
July 30 (LNGJ) – Russia’s state-owned holding Rostec has developed a mobile power plant on the basis of gas reciprocating units of Russian make. Running on LNG, the power plant can provide up to 1.4 MW of electricity and is employed to power remote settlement and oil upstream operations.
China imports more than one sixth of U.S. LNG output
China’s shift to cleaner-burning fuels in the power sector has increased the country’s gas demand and turned it into one of the world’s largest importer of American shale gas. US LNG exports in 2017 averaged 1.9 billion cubic feet per day and of that amount, 15% went to China, making it the third-largest importer of U.S. LNG behind Mexico and South Korea.
South Korea and Singapore pledge closer LNG and energy ties at start of three days of talks
South Korean President Moon Jae-in and Singaporean Prime Minister Lee Hsien Loong have held talks in the Asian city state and agreed to further strengthen economic cooperation in liquefied natural gas and energy as well as in other sectors.
Developer of Jordan Cove LNG project in Northwest US state of Oregon reorganizes team
Pembina Pipeline Corp., developer of the Jordan Cove LNG project in the Northwest US state of Oregon, has promoted four executives to help advance the liquefaction venture and other major company activities confirmed since completing the takeover of Veresen Inc.
