Henry Hub price rises
June 29 (LNGJ) - US spot natural gas prices and futures soared and the New York Mercantile Exchange (NYMEX) front-month contract expired above $3.60 per million British thermal units. The Henry Hub spot price also jumped to $3.59 per MMBtu as a US heatwave led to record temperatures in the Pacific Northwest and spurred demand for cooling. The US benchmark prices affect LNG contracts linked to the Henry Hub. The rising US temperatures led to pipeline issues in some areas.
Spot natural gas prices also continued to strengthen in other regions, reaching $7.00 per MMBtu in California. US weather forecasters expect the heatwave to reach the East Coast by July 6 and to last until at least July 12, resulting in high temperatures in most US regions and firm domestic gas-fired power demand.
Air Products expands global industrial gases presence amid recent large-scale LNG equipment orders
Air Products, the leading provider of LNG equipment, reported a 3 percent decline in fiscal second-quarter net profits as it continued as the main LNG processing technology provider while building up a global industrial gases business with projects progressing in nations such as Malaysia, China, Saudi Arabia and South Korea.
President Trump makes major LNG move in Texas speech by extending Non-FTA accords through 2050
US President Donald Trump said during a speech in Midland, Texas, that the Department of Energy is issuing a final policy statement that allows for liquefied natural gas exports to Non-Free Trade Agreement countries to be extended through the year 2050.
US Rio Grande LNG project tells LNG19 event about Brent-indexed sales deal with Shell
NextDecade Corp., the developer of the Rio Grande LNG export project at the port of Brownsville in Texas, announced at the LNG2019 conference in Shanghai that it had signed a 20-year sale and purchase agreement with Royal Dutch Shell.
Shell will purchase LNG on a free-on-board basis whereby it provides its own shipping starting from the commercial operation date of Rio Grande LNG, currently expected in 2023.
The US company announced the key event at its exhibition stand at the LNG19 conference in the Chinese city backed by the International Gas Union (IGU) and Gas Technology Institute.
NextDecade said that around three-quarters of the purchased LNG volumes will be indexed to the North Sea Brent crude price and the remaining volumes indexed to US natural gas prices, including the benchmark Henry Hub.
“The SPA is the first-ever long-term contract with LNG produced out of the United States to be indexed to Brent and comes with full destination flexibility,” stated NextDecade.
“We are thrilled that we continue to achieve our milestones, as promised, and look forward to finalizing additional commercial agreements and to proceeding with the development of our Rio Grande LNG project,” added the company.
Matt Schatzman, NextDecade’s President and Chief Executive and a former executive with BG Group of the UK, said he was honoured to have Shell as the first foundation customer.
“Shell is not only the largest portfolio LNG company in the world, Shell is also a recognized pioneer in the global LNG business,” explained Schatzman.
“Shell was the first to sign a long-term SPA from the United States indexed to Henry Hub in 2011, and so it is fitting they are the first to sign a long-term SPA from a US LNG project indexed to Brent,” added Matt Schatzman.
Shell also welcomes the deal with Slavko Preocanin, Vice President of Shell LNG Marketing & Trading saying the deal secured more volumes for the Anglo-Dutch company for the 2020s.
“It ensures we can meet the growing demand for secure, flexible and cleaner energy from our global customers,” added Preocanin.
“We look forward to working with NextDecade in the years to come,” he added.
NextDecade said it anticipated making a positive final investment decision by the third quarter of 2019 on up to three LNG Trains in its first phase of development.
The Brownsville plant will produce around 27 MTPA of LNG and the company’s affiliated Rio Bravo Pipeline in South Texas is also being approved.
NextDecade has a second Texan export venture called Galveston Bay LNG.
Galveston Bay LNG will include a 97-mile affiliated pipeline to move 3 billion cubic feet of natural gas per day from the Katy Hub in Waller County, while the liquefaction plant is proposed for a 550-acre site along the Texas City Ship Channel.
Gas Authority of India broadens portfolio with start of US cargo deliveries from Sabine Pass
Cheniere Energy, owner of the Sabine Pass LNG export plant in Louisiana, marked the start of regular LNG shipments to India with a ceremony for the first cargo departing under a long-term supply agreement.
