Tuesday, 16 February 2016 13:29

US shale gas production slows

Natural gas production across all major US shale regions are seen declining. Substantial drop in rig counts since mid-2014 can no longer be compensated by productivity gains, hence EIA analysts anticipate gas production will decline from 44.3 billion cubic feet per day in December to just over 43.9 Bcf/d in January 2016. 

The U.S. has been using the anti-Russian sentiment in the Baltic countries to foster LNG deals with Lithuania. Next in line might be Turkey, as the country is at the brink of a gas supply shortage, exacerbated by the risk of a cut in Russian supplies. 

EU leaders reckon that Nord Stream-2 contradicts efforts to reduce Europe's energy dependency and undermines Poland and Ukraine’s role as gas transit countries. The pipeline extension is meant to transport another 55 Bcm of Russian gas to Germany, but there is little need for additional volumes as long as CCGT profit margins stay negative. 

Shale gas from the US has been brand marked as ‘a new rival’ by the Gas Exporting Countries Forum (GECF) as it undermines the alliance’s strategy on pricing and production volumes. Leaders of Russia and Iran, whose countries hold 44% of global gas reserves, have forged closer ties at the side-lines of latest Gas OPEC meeting in Tehran to rise by 1.5 Bcf/d in 2016 despite declining rig counts – largely thanks to improved efficiency in shale gas drilling. 

Shale gas from the US has been brand marked as ‘a new rival’ by the Gas Exporting Countries Forum (GECF) as it undermines the alliance’s strategy on pricing and production volumes. Leaders of Russia and Iran, whose countries hold 44% of global gas reserves, have forged closer ties at the side-lines of latest Gas OPEC meeting in Tehran to rise by 1.5 Bcf/d in 2016 despite declining rig counts – largely thanks to improved efficiency in shale gas drilling. 

Tuesday, 16 February 2016 13:24

Goldboro LNG partners broaden European links

Pieridae Energy, the developer of the Goldboro LNG project in the Canadian province of Nova Scotia, has forged a shareholder relationship with Orlan of Poland, strengthening its European ties beyond the long-term sales agreement with E.ON Global Commodities. 

Houston-based Targa Resources Partners and Sanchez Energy have committed to invest an intital $125 million and $115m, respectively, to build a LNG processing plant and feed-gas pipelines that will exclusively target resources in the Eagle Ford Shale in southern Texas. 

Two companies involved in $100 billion of takeover transactions, BG Group of the UK and Energy Transfer Equity (ETE) of the US, have received full regulatory approval to proceed with the transformation of the existing Lake Charles LNG import terminal in Louisiana into an export plant. 

Tuesday, 16 February 2016 13:20

Congress passes two-year LNG fuel tax credit

Clean Energy Fuels Corp., the US developer of a liquefied natural gas fueling station network welcomed the passage by Congress of an alternative fuel tax credit that will continue to support the use of natural gas as a transportation fuel option. 

Tuesday, 16 February 2016 13:18

Singapore steps up gas use to curb emissions

Committing to a 36% cut in emissions per GDP ratio by 2030, Singapore is counting on clean energy. Natural gas accounts for over 95% of the city state’s power mix, up from just 19% in 2000, but the government eyes even more LNG-to-power plants as well as renewables.