LNG

The Federal Energy Regulatory Commission has introduced reforms to ensure the US transmission grid can meet the nation’s growing demand for reliable electricity with a new rule that outlines how to plan and pay for facilities that regions of the country will need to keep the lights on and power the American economy through the 21st Century.

ExxonMobil Corp., the largest US oil company and leading LNG producer and a partner of Qatar, said changes in natural gas prices would impact its second-quarter Upstream earnings by $1.8 billion to $2.2 billion compared with the first quarter even as the company was also overhauling trading activities and embarking on oil projects in Guyana and LNG expansion.

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.