US expects Henry Hub natural gas price to rise with summer gas-fired power needs and LNG exports
The US Government expects the benchmark Henry Hub natural gas price to increase along with gas-fired power demand and rising feed-gas supplies for liquefied natural gas exports as dry gas production stalls.
US state of California may need LNG for power to keep up with near neighbours El Salvador and Nicaragua
The US state of California, which has always rejected large-scale LNG imports or transfers, is now the centre of a major natural gas, power and water crisis blamed on planning policies dictated over the years by environmental activists.
US natural gas rise
March 4 (LNGJ) - US natural gas consumption increased by 3 percent in 2019, reaching a record of 85.0 billion cubic feet per day (Bcf/d), according to the Energy Information Administration. New natural gas-fired electric capacity and lower natural gas prices led the increase in domestic natural gas consumption.
US natural gas consumption grew in the electric power sector by 2.0 Bcf per day, or 7 percent, but remained relatively flat in the commercial, residential, and industrial sectors. Exports by pipeline gas to Mexico and liquefied natural gas elsewhere grew by 0.5 Bcf per day and 2.0 Bcf per day respectively.
US LNG momentum
July 27 (LNGJ) - US LNG exports are maintaining their current momentum, with six cargoes departing in the past week and two more being lifted through July 26 at the Sabine Pass plant in Louisiana and the Cove Point facility in Maryland. The six LNG carriers had capacity for 21.4 billion cubic feet and four left from Sabine Pass and two from Cove Point, according to a US Energy Information Administration report. Of the two other loading tankers with a combined 6.8 Bcf of capacity, one was at each of the terminals. The EIA report said that US natural gas spot prices rose at most locations. The Henry Hub price was last at $2.77 per million British thermal units. At the Algonquin Citygate for Boston, prices went up 11 cents to $2.82 per MMBtu and at the Transcontinental Pipeline Zone 6 trading point for New York City prices rose 5 cents to $2.88 per MMBtu. The Tennessee Zone 4 Marcellus shale-gas prices continued to trade at a discount to the Henry Hub at $2.26 per MMBtu.
US-Canada trade
May 24 (LNGJ) - The US remains a net energy importer from Canada and latest data from the US Energy Information Administration showed that while energy accounted for $18 billion of the value of US exports to Canada, oil and gas accounted for $73Bln of the value of all US imports from its northern neighbour in 2017. Bilateral natural gas trade between Canada and the US is dominated by pipeline shipments. “Natural gas imports from Canada increased to 8.1 billion cubic feet per day in 2017, accounting for 97 percent of all US natural gas imports,” said the EIA report. “Most of Canada’s natural gas exports to the US originate in Western Canada and are shipped to US West and Midwest markets,” it added. “US natural gas exports to Canada, which increased to 2.5 Bcf/d in 2017, mainly go from New York state into the eastern provinces,” it added. Canadian LNG export projects in Nova Scotia have previously discussed using pipeline volumes from the US Marcellus shale basin.
