LNG & Natural Gas News

Jun 15 - Pipe dream? Chevron, Woodside vie to shape Australia's LNG sector

After spending a decade and billions of dollars developing Australia's vast gas reserves, U.S. energy giant Chevron Corp and local firm Woodside Petroleum are at odds over the pace and timing of the next leg of expansion. Shipments of liquefied natural gas (LNG) have become one of Australia's biggest exports and a key source of revenue for many energy majors, so any hurdles in the sector's development could strike a substantial blow.

Jun 13 - Asian coal and gas markets roar into top gear as region revs up demand 

Thermal coal and gas prices have coursed into a bull run, propelled by particularly strong demand across Asia, where electricity consumption is surging thanks to healthy economic growth just as seasonal needs rise with the start of summer. Spot thermal coal cargo prices for export from Australia's Newcastle terminal last settled at $117 per tonne, the highest level since February 2012. That is up by more than 130 percent from 2016's record lows.  Click here to read full stories.

Jun 12 - LNG trade grows 10 pct in 2017 as U.S., Australia boost exports 

Global liquefied natural gas (LNG) trade grew by 10 percent last year due primarily to growing liquefaction capacity in the Australia and the United States, the U.S. Energy Information Administration (EIA) said on Monday. LNG trade reached 38.2 billion cubic feet per day (bcfd) in 2017, up 3.5 bcfd from 2016 and the largest annual volume increase on record, the EIA said, citing the Annual Report on LNG trade by the International Association of Liquefied Natural Gas Importers (GIIGNL). Click here to read full stories.

Jun 07 - Italy's new government to review TAP gas pipeline

A plan to build the final stage of a $40 billion international gas pipeline in Italy is under review, the country's new environment minister said, calling the project "pointless". Italy is at the end of the Southern Gas Corridor, a pipeline taking gas from central Asia to western Europe. It is a cornerstone of the European Union's energy security policy which aims to wean the bloc off Russian gas supplies. Click here to read full stories.

May 28 - LNG starts rally early, and it's mainly (but not only) China: Russell

The slack period for liquefied natural gas (LNG) in top consumer Asia is usually the shoulder season between winter and summer, or March to May, but this pattern hasn't really repeated this year. The spot price of the super-chilled fuel in Asia has been on a rising trend since the beginning of April, and hit $9.20 per million British thermal units (mmBtu) at the end of last week. Click here to read full stories.

May 25 - EU ends antitrust case against Gazprom without fines

Russian gas giant Gazprom clinched a deal with EU antitrust regulators on Thursday to reform its pricing structure and allow rivals a foothold in eastern Europe, avoiding fines in a case that has dragged on for seven years. Europe's competition enforcer said Gazprom's concessions allay concerns of market abuse, ending the EU's longest running antitrust saga that began with dawn raids at 20 offices in 10 countries in 2011. Click here to read full stories.

May 23 - U.S. LNG, ethanol sellers buoyed by China trade talks

China's interest in reducing its trade surplus with the United States through increased energy imports could advance plans for U.S. liquefied natural gas (LNG) plants and ethanol sales, analysts and energy executives involved in developing new LNG facilities said. Washington and Beijing stepped back from the brink of a full-blown trade war after talks last week, with the United States appearing to set aside for now its demands that China revamp key planks of its industrial policy. Click here to read full stories.

May 21 - Spot LNG shows strong gains for June (ICIS)
Spot LNG markers for June-delivery cargoes gained 10% on the month and 40% on the previous year as the market trended upwards during the four weeks from mid-April to mid-May. The global appetite for LNG remained healthy, with Argentina tendering for its winter supplies, Europe looking to use its summer to fill up depleted storage facilities, and east Asian countries starting to look towards summer peak air-conditioning demands as the market moves on from the April/May shoulder period between seasons.
Despite talk in recent years that the market could face a wave of surplus LNG supplies on the back of new projects entering service in Australia and the US, East Asia Index (EAX) spot prices were in fact at their highest level for the time of year since 2015.

May 04 - Global LNG Prices firm as fundamentals tighten, amid support from oil, coal 

Asian spot prices for liquefied natural gas (LNG) firmed over the past week, supported by strong oil and coal markets and amid a structural tightening of the fuel's fundamentals. Asian LNG prices for delivery in June were at $8.1 per million British thermal units (mmBtu), up 15 cents from last week's value and more than 15 percent above a seasonal low from early April. Click here to read full stories.

May 04 - Exxon pushes ahead with Rosneft LNG project despite sanctions - sources

Exxon Mobil is pushing ahead with efforts to develop its $15 billion Far East Liquefied Natural Gas (LNG) project with Russia's Rosneft despite being forced to exit some joint ventures due to Western sanctions. Two months ago Exxon invited companies including China National Petroleum Corporation's engineering arm to bid for construction contracts by October, sources with knowledge of the matter said. Click here to read full stories.

Apr 23 - Panama Canal to carry 30 mln T of LNG by 2020 as global demand grows 

The Panama Canal may carry five times as much liquefied natural gas (LNG) in 2020 as it did last year as production of the fuel expands in the United States and Asian import demand rises, the head of the canal's governing agency told Reuters. LNG volumes traversing the Canal could hit 30 million tonnes a year before the end of 2020, said Jorge Quijano, who leads the Panama Canal Authority, up from 6 million tonnes last year. Click here to read full stories.

Apr 16 - Steady LNG market sees flows pick up to Europe (ICIS)
Spot LNG markers for May delivery cargoes held pretty steady during the four weeks from mid-March to mid-April, with markets comfortably supplied following the end of the east Asian winter and with no major unexpected outages, although there was planned work in Australia, and Papua New Guinea’s LNG plant remained out of action.
East Asia Index (EAX) prices were down from the previous month though, as the market moved further into summer and Japanese and South Korean utilities were heard to have high storage levels. The EAX May average was $7.219/MMBtu, down 15% from the April average, but up 32% from the previous year. The annual increase reflects stronger conditions in the oil market, to which many long-term LNG contracts are still tied, with crude oil trading around $11-12.50/MMBtu this year against $8.70-9.70/MMBtu at the same time last year.

Apr 12 - After winter gas crunch, China pumps for underground storage 

On one of the many mountains in southwest China's sprawling region of Chongqing, a dozen wells in an exhausted gas field are this week starting to take in fresh fuel piped in from Central Asia's Turkmenistan, thousands of miles away. For the next six months, state energy giant PetroChina, operator of the Xiangguosi storage facility, will also inject gas from Myanmar to fill the vast chambers 3,000 metres (9,900 ft) under the mountaintop. Click here to read full stories.

Apr 06 - Exxon imports LNG to keep tanks cool at Papua New Guinea plant

ExxonMobil said on Thursday that it has imported a liquefied natural gas (LNG) cargo to keep tanks cold at its Papua New Guinea LNG facilities near the capital Port Moresby, confirming an earlier Reuters report. The imported LNG will help maintain the temperature of the company's LNG tanks and marine terminal loading facilities to avoid a lengthy recooling period when it restarts, a spokeswoman said in an email. Click here to read full stories.

Apr 04 - EU antitrust regulators set to accept Gazprom concessions - sources 

The European Union and Gazprom are poised to settle a long-running antitrust case after the Russian gas company agreed to price reforms and to allow rivals to gain a foothold in eastern Europe, people familiar with the matter said. A decision by the European Commission could come as early as this month although the timing could still slip, the people said. A settlement would allow Gazprom to avoid a possible fine of as much as 10 percent of its global turnover. Click here to read full stories.

Apr 03 - Australia's Santos says will engage with Harbour Energy over unsolicited $10.4 bln bid 

Australian gas producer Santos Ltd said on Tuesday it would "engage with" Harbour Energy after receiving a $10.4 billion takeover offer from the U.S. company, its fourth unsolicited bid since August 2017. The bid, valuing Santos at a 28 percent premium to its last close, would give Harbour access to a recently revived company with a low cost of oil production and stakes in liquefied natural gas (LNG) in Asia-Pacific, where demand is soaring. Click here to read full stories.

Mar 30 - Many Cash Prices Unavailable due to Easter holidays (Commodity3)
There will be very little to NO cash prices today March 30 through April 2 due to the Easter bank holidays.

Mar 15 - Vitol targets Southeast Asia's LNG boom with import projects

Vitol is targeting Southeast Asia's booming liquefied natural gas (LNG) markets to boost sales and catch up with rival commodity traders by developing import projects in Pakistan and Bangladesh. In its biggest potential project, the trader is teaming up with France's Total on a floating LNG import facility in Port Qasim, Karachi, industry and government sources said. Click here to read full stories.

Mar 15 - Shell close to clinching Hong Kong's first LNG import deal - sources

Royal Dutch Shell is close to bagging a deal to supply Hong Kong with liquefied natural gas (LNG), beating out major competitors for the right to be the first company to supply LNG to the city. Shell has edged out companies such as Malaysia's Petronas to supply LNG through a long-term contract to Hong Kong utility CLP Power, two sources familiar with the matter told Reuters. Click here to read full stories.

Mar 15 - Gazprom to cut hundreds of traders as Kremlin retreats from West

Russian gas giant Gazprom will cut hundreds of jobs at its overseas trading and export offices, including Britain, and move them to St Petersburg, according to two sources familiar with the plan, which comes at a time of rising tensions with the West. One of the sources said the decision reflected a broader trend of Russian state firms retreating from the West as part of President Vladimir Putin's drive to repatriate capital to reduce exposure to sanctions and also shore up the domestic economy. Click here to read full stories.

Mar 15 - Commentary: How to derail Russia's energy war

As another energy conflict is erupting between Russia and Ukraine, Moscow seeks to start construction of the second branch of the Nord Stream pipeline to deliver Russian natural gas directly to Germany. While the European Union countries remain divided, the United States needs to maintain its consistent and principled position to reduce Europe’s over-dependence on Russian natural gas. Click here to read full stories.

Mar 05 - Earthquake knocks out Exxon's Papua New Guinea LNG project for about 8 weeks 

ExxonMobil Corp said on Monday it would take about eight weeks to restore production at the Papua New Guinea liquified natural gas project (LNG), following a powerful earthquake that hit the country's energy-rich interior a week ago. The 7.5 magnitude quake on Feb. 26 triggered landslides and flattened buildings, killing at least 31 people, and has affected the regional LNG market. The South Pacific nation has declared a state of emergency. Click here to read full stories.

Feb 27 - ExxonMobil shuts LNG plant in Papua New Guinea; reports of casualties 

ExxonMobil Corp has shut its liquefied natural gas (LNG) plant in the wake of a powerful earthquake in Papua New Guinea's remote highlands region that cut off roads and damaged buildings, with unconfirmed reports of 20 or more deaths. The global energy giant said communications with nearby communities remain down following the 7.5 magnitude earthquake early on Monday, hampering efforts to assess damage to facilities that feed the PNG LNG plant, the country's biggest export earner. Click here to read full stories.

Feb 27 - LNG market needs $200 bln investment to meet demand - Shell 

More than $200 billion of investment in liquefied natural gas is needed to meet a boom in demand by 2030, Royal Dutch Shell, the world's top LNG trader, said on Monday. The LNG market is set to continue its rapid expansion into 2020 as facilities approved for construction in the first half of the decade come on line, in a development expected easily to meet sharp growth in consumption of the super-chilled fuel. Click here to read full stories.

Feb 26 - Oil like gas: S&P Global Platts bags Asian LNG price benchmark 

Asia's booming liquefied natural gas (LNG) market has seen exchanges and commodity price agencies vie to become the region's leading price benchmark.That race seems over with S&P Global Platts emerging the winner, over rivals including other price reporting agencies and exchanges. Click here to read full stories.

Feb 26 - Japanese firms in consortium to bring LNG to Australia's east coast 

A consortium including Japan's JERA and Marubeni Corp is aiming to ship liquefied natural gas (LNG) to Australia's east coast, looking to supply industrial gas users and possibly a new power plant, the group said on Monday.This is the second proposed LNG import terminal for Australia, the world's no.2 LNG exporter, as the country grapples with a supply gap at a time when its gas producers have locked in long-term contracts to sell LNG to Japan, China and South Korea. Click here to read full stories.

Feb 23 - China LNG imports hit record in Jan ahead of cold snap

China's imports of liquefied natural gas (LNG) hit record levels in January, as the world's most populous nation rushed to shore up supplies ahead of another cold snap and this month's Lunar New Year celebrations, while fuel exports also jumped. LNG imports totalled 5.18 million tonnes, compared with the previous record of 5.03 million tonnes set in December and up 51.2 percent from January, 2017, according to data on Friday from China's General Administration of Customs. Click here to read full stories.

Feb 22 - Spot LNG holds firm, winter EAX up 28% on year (ICIS)
Spot LNG prices for March delivery to east Asia held firm at over $10.00/MMBtu during the last four weeks. Demand remained strong after cold weather, while production outages at plants including the US Sabine Pass and Malaysia’s Bintulu cut supply. Consumers who had delayed buying in February in the hope of a downturn in prices the following month ended up disappointed.
The strong trading in recent weeks resulted in average spot LNG prices for east Asian winter deliveries some 28% higher than the year before, a signal that a long-debated supply surplus expected as a result of new projects coming onstream has not yet been evidenced through lower prices in the market.

Feb 22 - Interest in LNG fires up again, but the market's different now: Russell

If you were looking for signs that the liquefied natural gas (LNG) merry-go-round is starting to spin a little faster, the announcement of a planned massive expansion in Papua New Guinea is ample evidence. Global majors Exxon Mobil and Total are considering plans to double LNG exports from Papua New Guinea to about 16 million tonnes per annum, their partner Oil Search said on Feb. 20. Click here to read full stories.

Feb 21 - Australia's Santos profit soars, flags China LNG sales push

Santos Ltd, Australia's No. 2 independent gas producer, reported a more-than-fivefold rise in annual underlying profit on Wednesday, and flagged it may soon be in a position to revive its dividend and embark on growth. Two years of deep cost cuts and a rebound in oil and gas prices have helped Santos escape from a massive debt overhang and put it in a better position to fend off predators, like private equity-backed Harbour Energy. Click here to read full stories.

Feb 20 - Egyptian firm to buy $15 billion of Israeli natural gas

An Egyptian company will buy $15 billion of Israeli natural gas in two 10-year agreements announced on Monday, a major deal that Israel hopes will strengthen diplomatic ties. The partners in Israel's Tamar and Leviathan offshore gas fields said they would supply the private Egyptian firm Dolphinus Holdings with around 64 billion cubic metres of gas over a decade - with half coming from each field, and the proceeds shared equally. Click here to read full stories.

Feb 20 - Papua New Guinea LNG partners set plans for big expansion

Global giants ExxonMobil Corp and France's Total SA have reached broad agreement on plans to double gas exports from Papua New Guinea, their partner Oil Search Ltd said on Tuesday. The plan to expand the ExxonMobil-operated Papua New Guinea liquefied natural gas (LNG) plant to around 16 million tonnes per annum (mtpa) would see it rival Australia's biggest LNG projects, at a cost of around $13 billion, according to analysts. Click here to read full stories.

Feb 16 - TransCanada to proceed with Canada gas line expansion, profit beats

Pipeline operator TransCanada Corp  said on Thursday that it would go ahead with the C$2.4 billion ($1.9 billion) expansion of its NGTL natural gas system, boosting pipeline access for producers in Western Canada's gas-rich basins. The Calgary-based company also reported a strong fourth quarter profit, beating market expectations, sending its shares up 5 percent to C$56.33 on the Toronto Stock Exchange. Click here to read full stories.

Feb 16 - Top banks' 2017 commodities revenue drops 42 pct to lowest since 2006

Commodities-related revenue at the 12 biggest investment banks fell by 42 percent last year to its lowest since at least 2006, a report by financial industry analytics firm Coalition said on Friday. Revenue from commodity trading, selling derivatives to investors and other activities in the sector fell to $2.5 billion in 2017 from $4.3 billion the previous year, it said in a report. Click here to read full stories.

Feb 16 - Washington state likely to deny permits for Trump oil drilling plan - official

Washington state is preparing to reject land leases and easements to stymie the Trump administration's plan to allow oil drilling off its shores, an official of the Pacific northwest state said on Thursday. State Commissioner of Public Lands Hilary Franz, in a letter to U.S. Interior Secretary Ryan Zinke issued Thursday, said the permitting of pipelines or other oil and gas infrastructure on state-managed land must prove to be in the "best interest of the state." Click here to read full stories.

Feb 14 - Asia's soaring gas demand opens window for new LNG projects

Soaring gas demand from China, India and Southeast Asia is sucking up an LNG supply glut previously expected to last for years, opening opportunity for new production from East Africa to North America that had been deemed part of the overhang. Trade flows in Eikon show global liquefied natural gas (LNG) imports have risen 40 percent since 2015, to almost 40 billion cubic metres (bcm) a month. Click here to read full stories.

Feb 13 - Trump infrastructure plan would speed up pipelines, cut environmental reviews

The Trump administration’s infrastructure proposal released on Monday would speed up the permitting of U.S. natural gas pipelines, including by cutting Congress out of the process for allowing them to cross national parks. The proposal fits into President Donald Trump’s broader plan to boost U.S. oil and gas development by slashing red tape, something that has cheered industry but raised concerns among environmentalists and Democratic lawmakers. Click here to read full stories.

Feb 05 - China's soaring natural gas output unable to meet demand set loose in pollution fight 

China's natural gas production is rising at the fastest pace in four years but that will not be enough to meet the demand for the fuel that has been unleashed through a government program to raise gas usage in order to clean the country's polluted air.Gas output in China rose to a record 147.4 billion cubic metres (bcm) last year, up 8.5 percent from 2016, data from the National Bureau of Statistics showed. Gas production is forecast to climb by between 6 percent to 8 percent per year through 2020, according to researchers at China National Petroleum Corp. Click here to read full stories.

Feb 01 - BP expects gas to overtake oil as main energy source in 2040

BP expects gas to overtake oil as the world's primary energy source in around 2040 as demand for the least polluting fossil fuel grows, its vice president for strategic planning said on Wednesday. "We see it (gas) take over from coal in the early 2030s... We think there is a very good case for gas actually overtaking oil post 2040 or just before 2040," Dominic Emery told a gas conference in Vienna. Click here to read full stories.

Feb 01 - Israel, Lebanon clash over offshore energy, raising tensions 

Israel described as "very provocative" on Wednesday a Lebanese offshore oil and gas exploration tender in disputed territory on the countries' maritime border, and said it was a mistake for international firms to participate. Lebanese Prime Minister Saad al-Hariri, whose country considers Israel an enemy state, said the comments were one of several "threatening messages" from Israel in recent days. Click here to read full stories.

Feb 01 - Goldman loses more commodities traders in broader overhaul

Several key commodities traders are leaving Goldman Sachs Group Inc, sources said on Wednesday, the latest wrinkle as the Wall Street firm seeks to turn around its struggling commodities unit. Those leaving include Don Casturo, operating chief of global commodities; Saad Usmani, a London-based managing director who traded crude oil and natural gas; Rahul Dhir, who traded refined oil products; and Will Evans, a global franchise manager, according to people familiar with the matter, and a Jan. 30 memo announcing Casturo's departure seen by Reuters. Click here to read full stories.

Jan 31  - U.S. oil and gas drilling costs rise as rig count climbs: Kemp

U.S. shale producers are facing rising costs for everything from drilling rigs to pressure pumping equipment and labour as the cyclical expansion in oil prices and drilling matures. The cost of drilling oil and gas wells has increased significantly over the last year, according to the latest provisional estimates from the U.S. Bureau of Labor Statistics. Click here to read full stories.

Jan 31 - Exxon aims to triple Permian shale output over next seven years

Exxon Mobil Corp plans to triple its oil and natural production in the Permian Basin of West Texas and New Mexico by 2025 and spend $2 billion there to expand a crude storage terminal, it said on Tuesday. The plans highlight the increasing importance of U.S. shale to the world's largest publicly-traded oil producer alongside its global mega-projects in places such as Qatar and Guyana. Click here to read full stories.

Jan 31 - Oil and gas producer Chesapeake cuts 13 percent of workforce

Oil and gas producer Chesapeake Energy Corp  said on Tuesday it had cut 400 jobs or about 13 percent of its workforce in its latest step to reduce costs. The job cuts affected most functions and were mainly limited to Chesapeake's headquarters in Oklahoma City, according to an email sent by Chief Executive Doug Lawler to employees. Click here to read full stories.

Jan 25 - Japan 2017 thermal coal imports hit record, LNG up for first year in three 

Japan's thermal coal imports rose to a record last year and liquefied natural gas (LNG) purchases climbed for the first time in three years, as the fuels filled the gap in power generation left by the country's slow restart of its nuclear power plants.The figures underscore Japan's continued reliance on imported fossil fuels for power generation, as it slowly embraces renewable energy, while the majority of the country's nuclear reactors remain shut following the Fukushima disaster nearly seven years ago. Click here to read full stories.

Jan 25 - Commentary: A tale of a tanker, Russian gas, sanctions and energy politics 

After months of President Donald Trump’s promises to bring about a new era of American “energy dominance,” largely based on booming oil and natural gas production, it was surprising to learn that the United States will continue importing liquefied natural gas this winter. Even more surprising: that the country could import its first Russian LNG produced by Yamal LNG, a facility subject to U.S. financial sanctions. The cargo at the heart of the controversy is carried by Gaselys, a tanker that was approaching Boston Tuesday after various delays and an unusually circuitous course generated intense. Click here to read full stories.

Jan 24 - U.S. natural gas bears caught by return of winter: Kemp

U.S. natural gas prices have bounced sharply from their lows in December after a sustained spell of exceptionally cold temperatures pushed stocks near to the bottom of their five-year range. Futures prices for gas delivered to Henry Hub in February have risen more than 25 percent since Dec. 21. Prices for deliveries in July are up 10 percent. Click here to read full stories.

Jan 23 - China rushes to replenish gas supplies ahead of icy blast, holiday 

China is pulling in ships from all over to avoid a natural gas supply squeeze ahead of another cold snap and as the world's most populous nation prepares for Spring Festival celebrations. Fuel demand in January and February typically slows as temperatures improve compared with the busiest month, December, but data suggests this year could buck the trend. Click here to read full stories.

Jan 19 - Asian spot LNG prices climb to 3-year high on winter demand

Asian spot prices for liquefied natural gas (LNG) hit their highest in more than three years this week, with traders in Asia and Europe flagging temperatures in the north of the continent are set to dip further as production outages curb supply. The cold wave in northern Asia - by far the world's biggest LNG-consuming region - has also opened up arbitrage opportunities for traders, attracting several LNG tankers from the United States, shipping data from Reuters showed. Click here to read full stories.

Jan 18 - Spot LNG prices up on outages, crude (ICIS) 

Spot LNG prices for east Asia held steady for most of the last four weeks at around $11.00/MMBtu for February deliveries, but started climbing higher towards mid-January on the back of maintenance outages at major production facilities, and influenced by the continued uptrend of crude oil.
  Asian LNG has maintained, and even widened, its premium of around $4.00/MMBtu over northern European spot gas prices, offering a continued incentive to reload LNG from Europe to ship eastwards to countries such as South Korea and Japan.
  The ICIS February East Asia Index (EAX) opened the period at $10.800/MMBtu on 18 December, ticked up to $11.000/MMBtu, then climbed higher to $11.613/MMBtu on 15 January, its last day as the front-month assessment. This was up 12% from the average EAX price for January deliveries a month earlier, and up 17% from the February average a year earlier.

Jan 12 - China's gas imports jump to record high as winter weather bites

China's natural gas imports soared to a record in December as the country battled a winter supply crunch, while crude oil imports eased sharply from near-record highs a month earlier, customs data showed on Friday. December gas imports, including pipeline imports and tanker shipments of liquefied natural gas (LNG), came in at 7.89 million tonnes, 20 percent above November's previous record of 6.55 million tonnes, data from the General Administration of Customs showed. Click here to read full stories. 

Jan 12 - Too hot to handle? Shell's Gaza gas field sale hits problems

It may prove to be Royal Dutch Shell's hardest sell. The Anglo-Dutch group is struggling to find a buyer for its gas field off the Gaza Strip, even among energy companies long used to dealing with projects fraught with political and security risks. At least one European company has shown interest in the undeveloped Gaza Marine field following a reconciliation deal in October between the two rival Palestinian factions, a source involved in the talks said. Click here to read full stories.

Jan 11 - 2017 LNG production up by 12% (ICIS)
After a limited increase in 2016, global LNG production jumped in 2017. But new volume was readily absorbed, largely by East Asia, with prices supported by rising oil.
Global LNG exports rose to a record high of 290.5m tonnes in 2017, up by 12% year on year, with new Australian and US supply driving the change.
Alongside almost identical exports from the world’s largest producer, Qatar, Australia and the US contributed an additional 22m tonnes combined, according to data from LNG Edge.

Jan 10 - U.S. may get first LNG import from Russia despite sanctions - report 

A vessel that may be carrying liquefied natural gas from Russia's new Yamal LNG export terminal could be heading to the United States despite sanctions against the company that operates the Russian facility, according to a report by S&P Global Platts and Thomson Reuters shipping data. The tanker Chris. De Margerie picked up a cargo from Novatek PAO's Yamal facility, Russia's second LNG export terminal, on Dec. 9 and dropped it off at National Grid Plc's Isle of Grain LNG facility near London on Dec. 28, according to Thomson Reuters data. Click here to read full stories.

Jan 08 - Storm Bears Down on Australia's Pilbara Region (Dow Jones)
A storm brewing off Australia's northwest Kimberley coast is expected to develop into a tropical cyclone as soon as Wednesday, Australia's weather bureau says, threatening resources projects in the Pilbara region. The expected Cyclone Joyce will follow Cyclone Hilda, which hit the city of Broome in December with wind gusts of up to 120 kilometers per hour. Hundreds of workers have already been evacuated from offshore oil and gas rigs ahead of the storm, which is expected to be more powerful than Cyclone Hilda. The Pilbara is a globally significant mining and energy region, with iron ore and liquefied natural gas industries valued at more than A$70 billion.

Jan 05 - Cold comfort: China's Wuhan eases gas rationing as snow hits

The industrial city of Wuhan eased restrictions on gas use on Friday for residents facing freezing temperatures and heavy snow falls, as increased supplies offered some respite to China's winter gas shortage. Frigid weather in northern and eastern parts of the country have stoked worries over a worsening crunch in gas supply as the government pushes millions of households and industrial plants to switch to the cleaner fuel for heating from coal.  Click here to read full stories.

Jan 04 - Russian gas exports to Europe hits all-time high in 2017

Russia's gas exports to Europe and Turkey rose by 8.1 percent to a record high 193.9 billion cubic metres (bcm) in 2017, Alexei Miller, head of Gazprom, said in a statement on Wednesday, despite EU efforts to cut its reliance on Russian energy. Gazprom, run by Miller, a close ally of Russian President Vladimir Putin, supplies more than a third of the European Union's gas. Click here to read full stories.

Jan 03 - China set to top Japan as world's biggest natural gas importer 

Beijing's crackdown on pollution has put China on track to overtake Japan this year as the world's biggest importer of natural gas, used to replace dirtier coal. China - already the biggest importer of oil and coal - is the world's third biggest user of natural gas behind the United States and Russia, but has to import around 40 percent of its total needs as domestic production can't keep up with demand. Click here to read full stories.

Jan 02 - Clear winners: China's war on smog lifts metals, LNG to multi-year peaks 

Industrial metals, liquefied natural gas and steel finished 2017 in stunning fashion as a crackdown on pollution in China, the world's no. 2 economy, boosts demand for cleaner fossil fuels and raw materials vital to clean-tech industries. The world's most traded commodity, oil, rallied to finish the year at levels not seen in more than two years on increased demand and efforts by major producers to cut supply. Click here to read full stories.

Jan 02 - U.S. natural gas output at multi-year records in Oct - EIA 

U.S. crude oil production in October rose to the highest inmore than 46 years, while natural gas production leaped to a new record, U.S. Energy Information Administration data showed on Friday. The production increases in October compared to a year ago come on the heels of higher energy prices, with U.S. crude futures recently touching $60 a barrel for the first time since mid 2015. Click here to read full stories.

Dec 20 - France passes bill to end oil and gas production by 2040 

France's parliament passed legislation on Tuesday requiring all oil and gas exploration and production on French territories to end by 2040, the first time any country has taken such a step. The bill, presented to cabinet in September, bans the renewal of any existing concessions beyond that date. New exploration permits will no longer be granted from now. Click here to read full stories.

Dec 19 - European outages boost Asian spot LNG (ICIS)
- Spot LNG prices for east Asia and Europe climbed higher across the past month as the key buyers in the two regions moved further into winter, with gas supply problems in Europe providing a sharp boost higher towards the end of the period.
- Spot LNG prices for South America, however, held fairly steady, with the southern hemisphere having entered summer, when heating demand is lower, and with Brazil’s rainfall situation looking set to provide sufficient hydropower potential.
- The ICIS January East Asia Index (EAX) opened the period at $9.675/MMBtu on 16 November and climbed to $10.750/MMBtu by the end on 15 December. It averaged at $9.956/MMBtu over the month, up by 8% from the month before and by 29% from the same period the year before.

Dec 18 - China unveils 2017-2021 winter clean heating plan-media 

China announced on Sunday a five-year plan to convert northern Chinese cities to clean heating during the winter through to 2021, state media reported, amid a deepening heating crisis. An unprecedented government campaign to switch millions of households and thousands of businesses from coal to natural gas in northern China this winter has backfired. Click here to read full stories. 

Dec 18 - ExxonMobil, BHP end Australia gas sales joint venture 

ExxonMobil Corp and BHP Billiton Ltd have agreed to end a nearly 50-year-old gas marketing joint venture in Australia, bowing to pressure from the nation's competition watchdog amid concerns about gas supply and soaring prices. The Australian Competition and Consumer Commission (ACCC) and the companies said on Monday they would start marketing their gas from the Gippsland Basin separately, starting in 2019. Click here to read full stories.

Dec 15 - Sea change: LNG tankers divert to China as winter gas shortage bites 

Liquefied natural gas (LNG) is being re-exported to China from Japan and tankers are being diverted from as far away as Brazil, with traders rushing to find cargoes in the face of a supply crunch in the world's No.2 economy as winter bites. Following an unprecedented drive to switch millions of households to natural gas from coal for heating, China's imports of LNG have surged as utilities struggle to meet soaring demand as winter gets off to a colder start than usual.  Click here to read full stories.

Dec 15 - As China gas crunch grows, CNOOC hires 100-truck convoy to ship LNG to icy north 

China oil and gas major CNOOC has rented a convoy of 100 trucks to ship liquefied natural gas (LNG) the length of the country to wintry northern regions in the latest unusual, and costly, move to ease a deepening fuel crisis. The trucks, kitted out to transport 20 tonnes apiece of super-chilled gas, are travelling thousands of kilometres from CNOOC's main LNG receiving terminals in the south, such as the Zhuhai Jinwan and Yuedong stations in Guangdong province, CNOOC said in a statement on Friday. Click here to read full stories.

Dec 14 - China's natural gas woes boost coal, but for how long? : Russell

A sure sign that China is struggling with its planned switch to natural gas from coal for winter heating is the spot price of Australian coal climbing back above $100 a tonne. Spot cargoes of thermal coal from Australia's Newcastle port, an Asian benchmark for the fuel used mainly in power plants, rose to $100.65 a tonne on Wednesday, breaching the triple-figure barrier for the first time since Nov. 1 and hitting their highest since mid-September. Click here to read full stories. 

Dec 14 - China's industrial heartland struggles in Beijing's fight against smog 

Severe natural gas shortages are hitting businesses and residents across China's industrial heartland as an unprecedented government effort to clean up an environment devastated by decades of unbridled growth backfires. Factories are closing or operating at reduced capacity, businesses are seeing profits shrink as supply chains are disrupted, and people are shivering through sub-zero temperatures without adequate heating at home, according to interviews conducted across the region last week. Click here to read full stories.

Dec 13 - Broken pipeline cuts British supply during peak energy demand 

Britain's biggest pipeline from its North Sea oil and gas fields is likely to be shut for several weeks for repairs, its operator said on Tuesday, disrupting gas flows and sending international crude prices to their highest since mid-2015. The closure has struck during a winter freeze in Britain, where snow and ice have driven up demand for heating fuel just as gas flows through the network, which carries a third of Britain's gas produced offshore, were disrupted. Click here to read full stories. 

 

Dec 13 - Deadly blast at Austrian pipeline hub slashes gas flow to Italy 

An explosion and fire that ripped through Austria's main gas pipeline hub on Tuesday killed one person and injured 21 others, prompting Italy to declare a state of emergency as flows from the strategic site were cut off for most of the day. The Baumgarten site in eastern Austria, near Slovakia, is a major regional transfer node, taking natural gas from as far away as Russia and pumping it towards neighbours including Germany and Italy, Baumgarten's biggest recipient. Click here to read full stories.

Dec 12 - Cold comfort: Energy prices soar on oil woes, China gas spree and winter coal surge

Global energy prices are surging as cold weather across the northern hemisphere pushes up demand for heating fuels like coal and natural gas, while supply disruptions have pushed up oil. In oil markets, the most traded commodity, Brent crude oil futures shot above $65 per barrel on Tuesday for the first time since June 2015 after the shutdown of the Forties North Sea pipeline knocked out significant supply from a market that was already tightening due to OPEC-led production cuts. Click here to read full stories.

Dec 12 - China coal prices soar as gas shortages spur unexpected demand 

China's thermal coal prices jumped to a record high on Monday as natural gas shortages across the north spurred an unexpected resurgence in demand for the fuel from utilities, tightening supplies in the world's top importer of the commodity. Coal futures jumped to 689.8 yuan ($104.26) per tonne, topping a previous all-time high of 688.8 yuan set a week ago. Spot cargo prices for thermal coal out of Australia's Newcastle port, which acts as an Asian benchmark, have also risen. Click here to read full stories.

Dec 11 - Mineral Resources trumps Chinese bid for Australian gas producer AWE 

Australia's Mineral Resources has offered A$484 million ($364 million) for domestic gas producer AWE Ltd, topping a sweetened bid from state-owned China Energy Reserve and Chemicals Group (CERCG). The two suitors are targeting AWE's stake in a gas project in Western Australia, Waitsia, which the company has called the country's biggest conventional gas find onshore in four decades. Click here to read full stories.

Dec 08 - China's Nov natural gas imports hit record, crude shipments rebound 

China's natural gas imports in November rose to a record as domestic demand surged while crude imports were the second-highest ever, as refiners ramped up output to cash in on strong profits as fuel prices soar, customs data showed on Friday. November gas arrivals, including pipeline imports and liquefied natural gas (LNG) shipments, hit 6.55 million tonnes, breaking a previous record of 6.1 million tonnes last December, data from the General Administration of Customs showed. Click here to read full stories.

Dec 07 - CNPC warns of China gas shortages if extreme weather hits 

China National Petroleum Corp (CNPC) on Thursday warned there could be natural gas shortages in China this winter if the country is hit by "extreme" weather. The state-owned company, a key gas supplier to the world's No.2 economy, also forecast in a statement that Chinese gas consumption would rise 16.4 percent to a record high in 2017. Click here to read full stories.

Dec 05 - China's natural gas push is too successful, creates price dilemma: Russell 

China's push to use more natural gas over winter in a bid to cut air pollution is running into the harsh realities of rising prices and limited supplies of the cleaner fuel. In a signal of what may become more government intervention in the natural gas market, China's state planner ordered eight regions to meet with natural gas producers, liquefied natural gas (LNG) terminal operators and traders.  Click here to read full stories.

Dec 04 - Global factors weigh against Bolivia in gas contract negotiations 

Bolivia's declining natural gas reserves, rising global supplies and more flexible sale terms in the international market all count against South America's top gas exporter as it negotiates contracts with Brazil and Argentina, its two biggest customers. At stake in these talks are one of Bolivia's main sources of export revenue and its ability to retain its role as the region's largest gas supplier. Click here to read full stories.

Nov 23 - Shanghai exchange says it mulls natgas, refined products contracts

The Shanghai Futures Exchange (ShFE) is considering launching natural gas and refined oil products futures contracts as it continues to prepare for its long-awaited crude oil contract, Jiang Yan, chairman of the exchange, told Reuters on Thursday.He declined to give a timeline for the crude launch. Click here to read full stories.

Nov 23 - Britain to offer North Sea tax relief to spur investment 

Britain plans to introduce tax changes to oil and gas companies operating in the North Sea, finance minister Philip Hammond said on Wednesday, in a bid to spur investment in the ageing basin.Presenting Britain's budget for next year, Hammond said that starting November 2018, tax history for oil and gas fields in the North Sea would be transferable from seller to buyer. Click here to read full stories.

Nov 21 - India rushing to join natural gas boom risks eventual LNG shortage: Russell

India is planning to join the Asian rush to boost the use of natural gas over coal, a further sign that the liquefied natural gas (LNG) market will tighten faster than previously expected. India's state oil refiners Indian Oil, Bharat Petroleum and Hindustan Petroleum aim to raise the contribution of natural gas to between 5 percent and 15 percent of their incomes over the coming years, up from virtually zero currently.  Click here to read full stories.

Nov 17 - Spot LNG continues steady climb on winter demand, tenders (ICIS)

Spot LNG prices continued a steady climb in the four weeks from 16 October to 15 November, on the back of growing demand from east Asian buyers, and tender activity from Egypt, India and Pakistan, as well as strengthening crude oil prices. The ICIS December East Asia Index (EAX) opened the period at $8.900/MMBtu, rising to $9.650/MMBtu by the end. It averaged $9.213/MMBtu over the month, up by 12% from the month before. It was also up by 30% against the same period the year before.

- Global LNG Markets for December delivery
The world’s largest LNG buyers in east Asia are entering their winter demand period, drawing more cargoes to Japan and South Korea. KOGAS, the South Korean gas seller, was reported to be making preliminary enquiries for 10-20 cargoes. China, meanwhile, continues to see rapid growth in LNG imports as it moves to switch heating fuels from coal to gas in order to alleviate air pollution concerns. Data from LNG Edge showed China imported 3.6 million tonnes of LNG in October 2017, up from 2.2 million tonnes in October 2016.

  A flurry of tender activity added to the demand pressure in the market. India’s GAIL, GSPC and Bharat Petroleum were all looking for near-term cargoes for the November-January period. Pakistan LNG requested four each for January and February. Mexican utility CFE also came into the market for November and December deliveries. Egypt’s EGAS ran a major tender to cover its requirements for the first quarter of 2018. It awarded a total of 12 cargoes to suppliers Gas Natural Fenosa, Glencore, Vitol and Trafigura. Nine of the cargoes are to be delivered to the Ain Sukhna port in Egypt, while three will be delivered to Jordan and regasified there, with the gas sent on via pipeline.
  Relatively firm prices seen in the tenders, influenced also by the rising price of Brent crude, which broke through $60/bbl in late October, lent strength to the LNG spot market. The number of tenders underway may also have kept some supply out of the spot market, as traders held cargoes in reserve in order to meet positions they had bid for.
  However, there were also some bearish signals. Late last year, Egypt had issued a tender for the full year 2017, calling for 68 cargoes, of which nine were ultimately deferred from 2017 to 2018. This year’s tender of only 12 cargoes for a quarter suggests a decline in LNG demand as domestic gas production improves, and with the giant Zohr field due onstream soon, reducing the country’s import requirements. Japan, meanwhile, received its first cargo from Australia’s new Wheatstone LNG project.
  South America is now out of its main winter demand period and countries such as Argentina are not expected to be active in the market in the near term. The South America Index (SAX) remained firm at an average of $8.447/MMBtu, but the region is not expected to pull in many spot cargoes.
  Within Europe, the Iberian region was the strongest, with an average Iberia Index (IBX) price of $7.503/MMBtu. Spain, in particular, was drawing in a steady string of cargoes from Peru’s Pampa Melchorita plant. Offtaker Shell originally targeted Peruvian cargoes for sale under long-term contract to Mexico, but recently has been diverting most of the output to alternative destinations, while Mexico has been able to take advantage of US pipeline gas and spot cargoes from the southern US Sabine Pass facility.

- Reload activity continues
The EAX average of $9.213/MMBtu was almost three dollars higher than the Northwest Europe Index (NEX) average of $6.267/MMBtu. Northwest Europe is well supplied with pipeline gas from producers including Russia, Norway, Algeria and the Netherlands. With the current price of shipping from northwest Europe to east Asia indicated at around $1.700/MMBtu, the premium for spot LNG in Asia is more than enough to cover the cost of reloading a cargo from northern Europe and taking it east. South America and the Middle East have also offered some profitable opportunities to sell reloads into.
  The northern French Montoir terminal, which has been receiving regular long-term contract cargoes from Nigeria, has reloaded several vessels recently. The 160,000cbm Cool Runner left Montoir on 29 September to deliver to Brazil, while the 163,000cbm BW GDF Suez Paris left on 13 October to deliver, unusually, to Zeebrugge in Belgium and Gate in the Netherlands. Normally ships would not carry LNG such a short distance across Europe, which is well connected by pipelines for normal gas flows. The deliveries may have been part of a wider swap deal. The 170,000cbm Golar Tundra set off on 28 October and continues on its way to east Asia. The BW GDF Suez Paris then came back for a second reload on 7 November, which it took east through the Mediterranean.
  The Dutch Gate LNG terminal reloaded volumes onto the 170,000cbm Hoegh Giant on 14 October, which were taken to India. The 162,000cbm Adam LNG then picked up a cargo from the Rotterdam facility on 26 October and is now rounding the Cape of Good Hope. Meanwhile, the UK’s Grain LNG reloaded the 160,000cbm Cool Voyager on 7 November, which has headed into the Med.

- First cargo from Wheatstone
The first of the winter’s new supply projects has now entered the market, opening the possibility of prices softening in coming weeks from their recent highs. Chevron loaded the initial cargo from the first 4.4 million tonnes per annum (mtpa) production train at the Australian Wheatstone liquefaction plant at the end of October. The cargo was delivered to Japan’s JERA around two weeks later.

Nov 17 - Bid for Santos puts spotlight on Papua New Guinea's juicy LNG assets

Takeover interest in Australia's Santos, a company that not long ago was drowning in debt, shines a spotlight on a burgeoning hotspot for oil and gas producers: Papua New Guinea. The South Pacific nation, one of the world's least explored countries but known for corruption and violence, has become a key source of growth for two of the world's biggest energy companies - ExxonMobil Corp and Total SA - looking to expand their liquefied natural gas (LNG) businesses. Click here to read full stories.

Nov 17 - Norway's $1 trillion wealth fund proposes to drop oil, gas stocks from index

Norway's trillion-dollar sovereign wealth fund is proposing to drop oil and gas companies from its benchmark index, which would mean cutting its investments in those companies, the deputy central bank chief supervising the fund told Reuters, sending energy stocks lower. If adopted by parliament, the fund would over time divest billions of dollars from oil and gas stocks, which now represent 6 percent - or around $37 billion - of the fund's benchmark equity index. Click here to read full stories.

Nov 16 - Australia's Santos spurns $7.2 bln takeover approach

Australian gas producer Santos Ltd said on Thursday it rejected a A$9.5 billion ($7.2 billion) takeover approach in August, sending its shares up 13 percent on speculation another offer was likely to emerge. Santos, Australia's no.2 independent oil and gas company, said it rebuffed the approach from private equity-backed Harbour Energy as too cheap and has not received any further proposal. Click here to read full stories.

Nov 15 - LNG giant Qatar's empty shelves pose upside risk for Asian gas prices

Gas exporting giant Qatar has all but sold out of winter supply after committing its spare output to China and South Korea, a development that could tighten Asia's gas markets as the peak demand season bites. Doha's bumper sales will also ring alarm bells for other regions reliant on Qatari liquefied natural gas (LNG) such as Europe and may further boost Asian spot prices, which have already surged 55 percent since September, traders said. Click here to read full stories.

Oct 26 - East Asia spot LNG gains 30% on Chinese, Indian demand (ICIS)
The spot LNG market for deliveries to east Asia showed strong month-on-month gains over the past four weeks, on the back of renewed buying interest from global consumers including China, India and Taiwan.
The ICIS November East Asia Index (EAX) averaged $8.263/MMBtu during 16 September to 15 October, up 30% from the average for October-deliveries during the previous four weeks. It was also up 39% from the previous year.
Spot prices for east Asia had already risen 9% during the previous month as major LNG suppliers such as Shell competed for spare supplies in east Asia to compensate for disruptions to their supply chains in the wake of a two-week pause in loadings from the US Sabine Pass facility following Hurricane Harvey.

Oct 13 - China Sept crude oil, gas imports jump ahead of winter fuel demand 

China's September crude oil imports climbed to the second highest level on record, while natural gas imports rose nearly 5 percent, official customs data showed on Friday, as the world's top energy consumer shored up fuel supplies for winter. For the year to date, gas imports were 48.38 million tonnes, up 22.3 percent, data from the General Administration of Customs showed. Click here to read full stories.

Oct 09 - Gas trucks boom in China as government curbs diesel in war on smog 

On a recent morning in Yutian, a dusty town bisected by the highway that connects Beijing to the sea, Su Meiquan strolled into a dealership packed with hulking trucks and prepared to drive off with a brand new rig. After years of driving a diesel truck for a trucking company, he had decided to buy his own vehicle – a bright red rig fueled with liquefied natural gas, capable of hauling as much as 40 tonnes of loads like steel or slabs of marble. Click here to read full stories.

Oct 03 - China's northern cities face soot-free winter with gas revolution 

As freezing winds whip across northern China this winter, Yao Guanghui is happy he'll have one less chore to do: feeding the coal furnace that has long heated his small house on the outskirts of Beijing. Traipsing outside on freezing nights to haul coal for the two big burners in his kitchen was his least favourite household job. Click here to read full stories.

Sep 25 - Gas export curbs loom as Australia's east faces gas shortfall 

Royal Dutch Shell, ConocoPhillips and Santos face curbs on exporting gas from Australia's east coast in 2018 if they fail to plug a projected local supply shortfall, Prime Minister Malcolm Turnbull warned on Monday. Eastern Australia faces a gas shortfall of up to 17 percent of market demand in 2018, the nation's energy market operator and competition watchdog projected in reports submitted to the government on Monday that will be the basis for a decision by Nov. 1 on whether to limit exports. The shortfall of around 110 petajoules (PJ) seen in 2018 is far worse than the market operator flagged in March. Click here to read full stories.

Sep 21 - Argentina's late subsidy payments hurt gas producers 

Argentina is behind on at least $700 million in promised subsidy payments to natural gas producers, hurting oil companies at a time when the government is trying to woo more investment in the nation's energy sector.The incentives have cost cash-strapped Argentina more than $7 billion since they were implemented in 2013 by former leftist President Cristina Fernandez. The program, unique in Latin America, is aimed at attracting investment to help boost the country's declining output and reduce its reliance on imported liquefied natural gas. Click here to read full stories.

Sep 20 - U.S. natural gas prices rise as winter stocks look tight: Kemp 

U.S. natural gas stocks look somewhat tight after low prices this summer worked off the excess stocks that built up in the first half of the year.Current stocks are in line with the five-year seasonal average but that may not be enough given the increase in exports and the number of additional combined-cycle power plants that have become operational in 2017. Click here to read full stories.

Sep 19 - Russia's Rosneft clinches gas pipeline deal with Iraq's Kurdistan 

Russian oil major Rosneft will invest in gas pipelines in Iraq's autonomous Kurdistan, expanding its commitment to the region ahead of an independence referendum to help it become a major exporter of gas to Turkey and Europe.Kurdistan's parliament approved a plan on Friday to hold a referendum on independence on Sept. 25, ignoring opposition from Baghdad and the wider region as well as Western concerns that the vote could heighten tensions in the region.  Click here to read full stories.

Sep 19 - Japan's Mitsui OSK targets 26 pct stake in Swan's Indian LNG unit 

Japan's leading shipper Mitsui OSK Lines aims to buy at least a 26 percent stake in a floating storage regassification unit (FSRU) in India, a company official said, to boost its exposure in the west coast project of Swan Energy.Swan Energy is building a 5 million tonnes a year FSRU and floating storage unit (FSU) at Jafrabad in western Gujarat state, with Mitsui awarded a long-term contract for operation and maintenance services. Click here to read full stories.

Sep 13 - Once fringe players, Swiss traders grab $10 billion slice of LNG market

Swiss trading houses are muscling in on the global market for liquefied natural gas, until now the preserve of energy giants, and expect to grab a $10 billion share of the rapidly growing business this year. Trafigura, Gunvor, Vitol and Glencore are all shaking up a decades-old system dominated by Western oil majors and state energy producers which sell LNG directly to large consumers on long-term contracts. Click here to read full stories.

Sep 13 - Trafigura expands LNG business with second Pakistan import project

Commodities trader Trafigura said it plans to open a further liquefied natural gas (LNG) import terminal in Pakistan as traders move into developing infrastructure to meet emerging markets' appetite for gas. The terminal at Port Qasim in Karachi will include a floating storage regasification unit (FSRU), where LNG will be converted back into gas for feeding into Pakistan's pipeline grid, the Swiss-based company said in a statement to Reuters. Click here to read full stories.

Sep 12 - Exxon Mobil's deal to cut India LNG prices is actually quite good: Russell 

Exxon Mobil's deal to cut the price of liquefied natural gas (LNG) supplied under long-term contract to an Indian buyer has largely been viewed as a bad outcome for producers of the super-chilled fuel. Certainly the trade made by Exxon to supply more LNG to Petronet LNG, but at a lower price, does seem to favour the Indian utility.  Exxon will increase the volume supplied from its share of the Chevron-led Gorgon project in Western Australia by 1 million tonnes a year to about 2.5 million tonnes, but at a lower cost than originally agreed in 2009. Click here to read full stories.

Sep 11 - ExxonMobil slashes 20-year LNG price to India in bad omen for producers

India has won a big price cut on a 20-year liquefied natural gas (LNG) deal with global giant ExxonMobil Corp in a rare contract renegotiation, a bad sign for global producers in a heavily oversupplied market. Long-term contracts are rarely revised in the LNG market, and for a big producer to cave in shows how supply from new plants in Australia and the United States over the past two years has transformed the market, analysts said. Click here to read full stories.

Sep 05 - Texas moves toward post-Harvey recovery; gas prices slip

Texas on Monday edged toward recovery from the devastation of Hurricane Harvey as shipping channels, oil pipelines and refineries restarted some operations and authorities lifted an evacuation order for the area around a once-burning chemical plant. Port operations across the U.S. Gulf Coast oil and gas hub were resuming, although many still had restrictions on vessel draft, according to U.S. Coast Guard updates. Click here to read full stories. 

 Sep 05 - Iraq's Kurdistan poised for bumper gas growth

Iraq's Kurdistan is poised for a major increase in gas output following the settlement of a court case with developers who are now looking to unlock the full potential of the region's large resources, investor Dana Gas told Reuters. The semi-autonomous region settled a case with the Pearl Consortium last week by paying $1 billion to its members - Dana, Dana's biggest shareholder Crescent Petroleum, Austria's OMV, Hungary's MOL and Germany's RWE. Click here to read full stories. 

Sep 05 - India to bid for Israel oil-and-gas exploration blocks - minister says

Indian state-run Oil and Natural Gas Corp  plans to bid for Israeli offshore oil-and-gas exploration blocks, India's oil minister told Reuters, the first major deal between the two countries since a groundbreaking trip by Prime Minister Narendra Modi in July. India and Israel have deep defence ties but Modi and his right wing ruling group are pushing to expand the relationship into other sectors such as energy and technology with a country they see as a natural ally against terrorism. Click here to read full stories.

Sep 01 - U.S. halts LPG shipments to Asia amid storm havoc; buyers hold back 

Shipments of liquefied petroleum gas (LPG) from the United States have been held up by the havoc wrought by tropical storm Harvey since last Friday, but Asian buyers are betting the situation will improve before supplies are critically squeezed. At least 300,000 tonnes in LPG shipments to Asia have been delayed after U.S. Gulf ports were shut, based on the estimates from four sources who buy mainly U.S. cargoes. Click here to read full stories.

Aug 29 - Spot LNG prices rise on Asian power demand, outages (ICIS)
- Global spot LNG indices climbed steadily from mid-July to mid-August on the back of increased consumption from east Asian buyers to fuel gas-fired power generation, and as a result of a number of planned and unplanned production outages.
- Japanese and Taiwanese utilities were active in the market as high temperatures increased air conditioning use, while portfolio LNG suppliers found spot market levels attractive compared to their long-term sales prices, and took cargoes to backfill position
- The ICIS September East Asia Index (EAX) for spot LNG delivered to Japan, South Korea, China and Taiwan averaged $5.820/MMBtu during its period as the front-month assessment. This was up 6% from the previous month, with a gentle upwards trend across the four weeks.

Aug 17 - From leader to loser: Australia risks missing next LNG wave: Russell 

Should the arrival of the last major piece of kit in Australia's $180 billion liquefied natural gas (LNG) spree be a cause for celebration or for a wake? It may seem that the arrival of the Ichthys Venturer floating production, storage and offloading facility would be worthy of breaking out the champagne. Click here to read full stories.

Aug 11 - Thailand's PTT looks to LNG partnership deals to secure supply

Thai state energy group PTT Pcl's July purchase of a stake in a liquefied natural gas (LNG) plant operated by Malaysia's Petronas will be its model for securing natural gas in the future, its chairman told Reuters. Thailand plans to triple its LNG intake by 2022 as its domestic natural gas output dwindles, and the strategy it is adopting is similar to Japanese utilities such as Tokyo Gas  and Osaka Gas taking small stakes in Australian gas developments to lock up supplies. Click here to read full stories.

Aug 09 - LPG once again being stored in tankers off Singapore - sources

Tankers carrying liquefied petroleum gas (LPG)are floating off Singapore for the first time this year as traders wait foropportunities to offload the fuel at more lucrative prices, three industry sourcessaid. At least one Very Large Gas Carrier (VLGC), the Pacific Binzhou, is anchored in Singapore carrying LPG, shipping data on Thomson Reuters Eikon showed. The ship docked more than five days ago. Click here to read full stories.

Aug 04 - Russian gas pipelines to go ahead despite U.S. sanctions 

New U.S. sanctions will make it harder for Russia to build two gas export pipelines to Europe but the projects are unlikely to be stopped. U.S. President Donald Trump has reluctantly signed into law further sanctions on Russia but some of the measures are discretionary and most White House watchers believe he will not take action against Russia's energy infrastructure. Click here to read full stories.

Aug 03 - South Asia becomes global LNG hotspot as Bangladesh enters market

South Asia, long a backwater for energy markets, is emerging as a hotspot for liquefied natural gas (LNG), with Pakistan and Bangladesh set to join India as major consumers, helping to ease global oversupply that has dogged this market for years. Only India and Pakistan currently import LNG in South Asia, taking in a combined 25 million tonnes, or 8 percent of global demand last year. Click here to read full stories.

July 27 - Qatar turns down new LNG deals with Egypt - traders

Qatar has turned down several requests by third-party traders to make fresh liquefied natural gas (LNG) supplies available to Egypt, raising concerns that a diplomatic row between the countries may curb regional energy trade, sources said. Top LNG producer Qatar supplies around 60 percent of Egypt's LNG but relations suffered after Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut ties and imposed sanctions on the gas-rich Gulf state last month, accusing it of supporting terrorism. Doha denies the charges. Click here to read full stories.

Jul 14 - no report available due to French National holiday, Bastille Day.

Jul 13 - Demand at Mexico onshore oil and gas auction spurs output hopes

Mexico auctioned 21 of 24 onshore oil and gas blocks on offer on Wednesday to investors from North America and Asia including tycoon Carlos Slim and Mexican newcomer Jaguar, anticipating a substantial boost for natural gas output. Monterrey-based Jaguar Exploracion y Produccion de Hidrocarburos took a stake in over half the areas awarded, which the oil industry regulator said would eventually yield around $2 billion in investments over the 30-year lifespan of the contracts. Click here to read full stories.

Jul 13 - Russia appears to deliver more turbines to Crimea: Reuters witnesses

Two more gas turbines appear to have been delivered to Russian-controlled Crimea, according to two Reuters reporters who saw the equipment at the port of Feodosia, potentially deepening a row over sanctions compliance in which Germany's Siemens has become embroiled. Reuters has no independent confirmation the equipment on the dock was Siemens-made turbines. It comprised four cylindrical objects, several metres long, and covered with blue and grey tarpaulins. Click here to read full stories.

Jul 11 - After Iran move, Total seen in pole position to snap up Qatar gas deals

Total is well placed to take a lead role in helping Qatar expand output from the world's largest gas field, largely thanks to its involvement in the Iranian side of the shared deposit, two sources familiar with Doha's thinking said. That puts the French oil major ahead of rivals like Exxon and Shell in the early running for developing the expansion, which the tiny Gulf state announced as it seeks to counter growing isolation caused by a regional diplomatic rift. Click here to read full stories.

Jul 07 - Russia offers Saudi Aramco role in Arctic LNG project - Novak 

Russian Energy Minister Alexander Novak said energy cooperation with Saudi Arabia was "top-flight" and would deepen if Riyadh took up an offer to participate in Russia's Arctic gas project. Russia and Saudi Arabia, the world's top oil producers, joined forces in the past year in a deal with other nations to cut oil output and lift oil prices, although that effort has been undermined by rising production elsewhere. Click here to read full stories.

Jul 07 - Poland expects long term deal for U.S. LNG supplies 

Poland expects to sign a long-term deal for liquefied natural gas (LNG) supplies from the U.S. to reduce its reliance on Russian gas, the country's President Andrzej Duda said after meeting U.S. president Donald Trump. Poland imports most of the 16 billion cubic metres of gas it consumes a year from Russia, on the basis of a long-term deal with Gazprom which expires in 2022. Click here to read full stories.

Jul 07 - U.S. to speed approval for oil, gas exploration on federal land 

U.S. Interior Secretary Ryan Zinke on Thursday signed an order to hold more lease sales and to speed up approving permits to explore for oil and gas on federal land, a process he said got bogged down under former President Barack Obama. The order is the latest move by the administration of President Donald Trump to make it easier to drill and mine on federal land, which Zinke said is a source of income for the government. Click here to read full stories.

Jul 06 - Energy giants court Qatar for gas expansion role despite crisis 

The West's three biggest energy corporations are lobbying Qatar to take part in a huge expansion of its gas production, handing Doha an unintended but timely boost in its bitter dispute with Gulf Arab neighbours. The chief executives of ExxonMobil, Royal Dutch Shell and France's Total all met the emir, Sheikh Tamim bin Hamad al-Thani, in Qatar before it announced a plan on Tuesday to raise output of liquefied natural gas (LNG) by 30 percent. Click here to read full stories.

Jul 06 - U.S. gas market rebalances as power producers return to coal: Kemp

The U.S. natural gas market has rebalanced with higher prices steadying production while reducing demand from electricity generators and making room for increased exports. Higher prices have averted the stock crunch many analysts feared in 2017 as a result of rising exports and the start up of a large number of new gas-fired combined cycle power plants. Click here to read full stories.

Jul 05 - Qatar shows mettle, offers compromise as Gulf states prepare meeting 

Qatar announced plans for a steep rise in Liquified Natural Gas production capacity on Tuesday that suggested it was ready for a protracted dispute with Gulf neighbours, but Doha said it was doing all it could to reach agreement. Saudi Arabia, the United Arab Emirates, Egypt and Bahrain were due to meet on Wednesday to decide whether to continue sanctions they imposed on Qatar on accusations it was aiding terrorism and courting regional rival Iran. Doha denies the charges and has submitted to mediator Kuwait replies to 13 demands that the gathering will consider. Click here to read full stories.

Jul 04 - Trump to promote U.S. natgas exports in Russia's backyard 

President Donald Trump will use fast-growing supplies of U.S. natural gas as a political tool when he meets in Warsaw on Thursday with leaders of a dozen countries that are captive to Russia for their energy needs. In recent years, Moscow has cut off gas shipments during pricing disputes with neighboring countries in winter months. Exports from the United States would help reduce their dependence on Russia. Click here to read full stories.

Jul 04 - Spain's Gas Natural targets $40 bln EDP merger - sources

Spanish power and gas company Gas Natural has approached Portuguese rival EDP about merging to form Europe's fourth biggest utility by market value, people familiar with the matter said on Monday. Talks over a potential 35 billion euro ($40 billion) deal and its potential structure are still at an early stage and there is no certainty over their outcome, four sources said, although Gas Natural chairman Isidre Faine has already sounded out his Portuguese counterpart Antonio Mexia about a tie-up. Click here to read full stories.

Jun 30 - Europe set to be natural gas kingmaker as LNG booms: Russell

It's probably not quite here yet, but the trend is unmistakeable; the world is moving to a globally-linked natural gas market and the rise of liquefied natural gas (LNG) is the key driver. Much of the increase in LNG capacity is because of the rapid boost to plants in Australia and the United States, as both countries take advantage of abundant local reserves of natural gas to muscle in on a market that until recently had been dominated by a few established producers and buyers. Click here to read full stories.

Jun 29 - In Warsaw, Trump to promote U.S. natural gas exports - Cohn 

U.S. President Donald Trump plans to promote U.S. natural gas exports at a meeting next week in Warsaw with a dozen leaders from central and eastern Europe, a region heavily reliant on Russian supplies, his top economic adviser told Reuters. On his way to the G20 summit in Germany, Trump is slated to speak in Poland - which received its first shipment of U.S. liquefied natural gas (LNG) this month - to a group of leaders eager to reduce their dependence on Moscow for energy. Click here to read full stories.

Jun 27 - China pumps cash into African floating LNG projects in strategic push 

China plans to pour almost $7 billion into floating liquefied natural gas (FLNG) projects in Africa, betting on a largely untested technology in the hope that energy markets will recover by the time they start production in the early 2020s. Western banks are wary due to the depressed state of the shipping and gas markets, as well as the technical difficulties of pumping gas extracted from below the ocean floor, chilling it into liquid form on a floating platform and transferring it into tankers for export. Click here to read full stories.

Jun 27 - Thirteen EU nations back plan for talks with Russia over gas pipeline 

Thirteen EU nations voiced support on Monday for a proposal to empower the bloc's executive to negotiate with Russia over objections to a new Russian gas pipeline to Germany, despite opposition from Berlin. At an informal debate among EU energy ministers, Germany's partners in the 28-nation bloc spoke out against Russia's Nord Stream 2 pipeline plan to pump more gas directly from Russia's Baltic coast to Germany. Click here to read full stories.

Jun 26 - Russia's Novatek aims topple Qatar from LNG top spot 

Russian gas producer Novatek aims to topple Qatar as the world's biggest exporter of liquefied natural gas as it gets closer to completing its first LNG project, a top executive said, batting away concerns about U.S. sanctions on the sector. The country's largest non-state gas producer is expected to start exporting LNG from the first phase of the Yamal project, situated far above the Arctic circle, towards the end of this year and may bring forward its final stage by six months, CFO Mark Gyetvay said. Click here to read full stories.

Jun 20 - EQT to create biggest U.S. natgas producer with $6.7 bln Rice deal

EQT Corp  was set to leapfrog Exxon Mobil as the largest U.S. natural gas producer after saying on Monday it agreed to a deal to buy fellow Appalachian gas and oil firm Rice Energy for $6.7 billion. The tie-up would join two of the largest players in the Marcellus and Utica Shale formations, which stretch across much of Pennsylvania and Ohio and are ideally situated to supply gas throughout the U.S. Northeast. Click here to read full stories.

Jun 19 - Qatar continues to ship LNG (recap ICIS)
  Exports of LNG from Qatar were largely unaffected in early June by the decision of neighbouring countries including Saudia Arabia, Bahrain, the UAE and Egypt to break off diplomatic relations. Qatari tankers continued to transit through the Suez Canal on their way to and from European customers, the neutrality of the canal protected by historic convention. Cargoes sourced from Qatar’s Ras Laffan production facilities continued to be delivered to Egypt’s Ain Sukhna regasification port. These cargoes typically arrive on ships chartered by Swiss-trading house intermediaries such as Glencore, Trafigura and Vitol. Qatar Petroleum said it was carrying on “business as usual.”
  Shell was seen to divert one ship, the 173,000cbm Maran Gas Amphipolis, from Kuwait to the UAE in order to meet its supply commitments in the UAE without sourcing a cargo from Qatar. There was also market interest when two of Qatar’s largest tankers, the 266,000cbm Q-Max class Zarga and Al Mafyar, abandoned voyages through the Suez Canal to Europe to instead head southwards around Africa, but it was soon confirmed that these ships remained on course to ultimately deliver to the UK despite embarking on a longer route to get there.

Jun 13 - Qatar crisis to speed the rise of Asia's spot LNG trade 

Qatar's isolation by other Arab nations has dealt a strong hand to Japanese utilities in talks reviewing long-term gas contracts with the top LNG exporter, likely accelerating a shift to a more openly traded global market for the fuel. If Japan gets its way in the periodic contract review, the world's biggest buyer of LNG would have to import more short-notice supplies from producers such as the United States, another step away from rigid deals that run for decades towards a more active spot market. Click here to read full stories.

Jun 13 - Crude oil, fuel shipping costs from Qatar set to rise on port ban 

The costs to ship fuel and crude oil from Qatar are expected to rise after the United Arab Emirates banned vessels that previously called at Qatar from docking at UAE ports, multiple sources from the oil and shipping sectors said on Monday. After Saudi Arabia, the UAE, Egypt and others last week severed diplomatic and transport links with Qatar after accusing it of sponsoring terrorism, the UAE blocked vessels carrying Qatari crude from entering the Emirates' oil ports.  Click here to read full stories.

Jun 09 - Qatar Gulf row roils LNG market, Shell tanker diverted

The escalating diplomatic conflict between Qatar and several of its Middle East neighbours has roiled the liquefied natural gas trade, causing at least one tanker to change course and UK gas prices to spike. Saudi Arabia, the United Arab Emirates, Egypt and others this week severed diplomatic and transport links with Qatar, the world's biggest LNG producer, accusing it of sponsoring terrorism. Click here to read full stories.

Jun 09 - Qatari standoff brings chaos to LNG trades (Splash24/7)
- The standoff between Qatar and its Arab neighbours has seen gas shipments bound for the UK change direction. Further LNG disruption is expected and gas prices are set to rise on the back of the confusion following the Middle Eastern spat. At the start of the week a number of Arab nations cut diplomatic ties with Qatar, claiming the Middle Eastern state was funding terrorist groups.
- Two Qatari LNG shipments, originally slated for the South Hook terminal in the UK, abruptly changed direction in the Gulf of Aden yesterday. The Nakilat ships Al Mafyar and Zarga made U-turns ahead of the Suez Canal and are now heading back towards their home base. The Suez Canal Authority has this week stressed that despite Egypt cutting ties with Qatar the waterway would remain open to Qatari ships. News that the gas ships had altered course saw UK natural gas futures spike nearly 4% yesterday.
- “A major effect of the cut in diplomatic relationships with Qatar is likely to be felt in the shipping sector,” FGE, a London-based consultant, said in a research note Thursday. Ships travelling to and from Qatar will need to find an alternate bunkering, and LNG shipping lines will have to adjust schedules and routes, it said. “This will increase costs, and in the near term, could even lead to delays in LNG deliveries.”

Jun 07 - Port bans choke Qatar's commodity trade as gas supply worries grow

A campaign by leading Arab powers to isolate Qatar is disrupting trade in commodities from crude oil to metals and food, and deepening fears of a possible jolt to the global gas market, where the tiny Gulf state is a major player. Just a day after Saudi Arabia and its Arab allies severed transport links with Qatar over a diplomatic row, bans on Doha's fleet using regional ports and anchorages threatened to halt some of its exports and disrupt those of liquefied natural gas (LNG). Click here to read full stories.

Jun 06 -  Exxon says Qatar LNG not affected by Arab states tension

Exxon Mobil Corp said on Tuesday that production and exports of liquefied natural gas from Qatar have not been affected by rising diplomatic tensions in the Middle East. Saudi Arabia, the United Arab Emirates, Bahrain and Egypt on Monday cut ties with Qatar, accusing the country of supporting extremism. Qatar denies the allegations.  Click here to read full stories.

June 05 - Qatar's dispute with Arab states lifts oil prices, may impact LNG supply

Saudi Arabia and key allies on Monday cut ties with Qatar, accusing it of supporting extremism, sending shockwaves through the energy industry as the countries involved include the world's top oil and liquefied natural gas (LNG) exporters. Saudi Arabia, the world's biggest crude oil exporter, along with the United Arab Emirates, Egypt, and Bahrain said they would sever all ties including transport links with Qatar, the top LNG exporter in the world. Click here to read full stories.

May 24 - E.ON to set up new independent energy trading business (ICIS)
- German utility E.ON expects to trade independently from spin-off Uniper on its core energy markets by the end of the year, its spokesman has told ICIS.
- E.ON last year spun off its conventional power generation and global energy trading business to Uniper so it could focus on renewables, energy networks and customer solutions.
- Uniper has been responsible for conventional generation and trading services since this move. E.ON expects its new independent trading arm to trade mainly to supply energy to its customers and to sell renewables on the wholesale market on behalf of itself and other companies. “It’s thus not a classic trading floor where earnings before interest and taxes are produced with the trading itself,” the spokesman said.
- The establishment of the procurement and marketing functions in E.ON’s core markets - Germany, Sweden and the UK - is due to be completed by the end of the year.
- The company will start trading on respective energy exchanges in the third quarter. In Germany, it will initially be represented at the EPEX SPOT power exchange and PEGAS gas trading platform, with 1 July set as the market go-live date.
- E.ON is already an EPEX SPOT member for German and Austrian day-ahead and intra-day power trading, the exchange’s website showed. Uniper is listed for all EPEX SPOT markets.
- E.ON had listed a number of risks to its Uniper spin-off at the time, including changes in counterparty requirements on the basis of Uniper’s assigned credit rating. This meant that new agreements had to be thrashed out before Uniper’s trading arm could enter into large transactions.

May 18 - CYBER ATTACK .WNCRY continue
- we are displeased to announce to our customers that our servers have been contaminated with WNCRY, following last week Cyber attack everybody heard about.
- despite our best efforts, the serveur hosting all our swap calculators cannot be cleaned, and therefore will be discarded. We shall have to buy a new one, this time from OVH Private Cloud. Full installation and setting-up and test might take a week.
- physical Cash Energy calculator including oil products / Natgas / LPG / Power / Emissions and Coal prices has been restored in a separate PC, updating 3 to 4 times a day.
- physical Cash Freight calculator including Tanker and Dry Bulk rates has been restored also in a separate PC, updating once per day.
- physical Cash Agri / Softs / Metals pages are safe and do run today as usual.
- once again we apology for all inconvenience, the less to say ? that WannaCRY has really made us cry !

May 17 - CYBER ATTACK .WNCRY continue
- we are displeased to announce to our customers that our servers have been contaminated with WNCRY, following last week Cyber attack.
- despite our best efforts, all our calculators were not fully cleaned this morning, and consequently ALL our SWAP pages are being discontinued until further notice ( and hopefully not more than a further day )
- physical Cash Energy calculator ( including oil products cash prices ) have been stopped too.
- NatGas and LPG multi broker pages are safe and shld run today as usual.
- we are making our best efforts to restore cleaned version on all our servers, hopefully before End of this Day.

May 17 - TrailStone's bid for Cargill's power, gas book falls through -sources

Commodities trader and investor TrailStone Group's bid to buy Cargill Inc's U.S. power and gas trading book has fallen through, two sources familiar with the matter said on Tuesday, setting back the seller's efforts to streamline operations. The sources, who requested anonymity because they are not authorized to speak to the media, said it was not clear why the deal was off. Click here to read full stories.

May 16 - Alert CYBER ATTACK .WNCRY
- we are displeased to announce to our customers that our servers have been contaminated with WNCRY, following last week Cyber attack
- consequently ALL our swap calculators (and pages) are discontinued until further notice.
- physical Cash Energy calculator ( including oil products cash prices ) still working fine, but service will be interrupted for malware cleaning this afternoon.
- we are making our best efforts to restore cleaned version on all our servers, hopefully before End of the Day.

Apr 28 - Long-term contracts needed to secure nuclear power – EDF (ICIS)

French power incumbent EDF will be unable to finance new nuclear plants unless investment is secured under long-term power contracts, a company official told ICIS in a recent interview.

“The electricity prices that we see today do not allow us to invest in or simply generate electricity,” energy policy advisor Florent Jourde, of EDF’s European affairs division, told ICIS in Paris. With almost 20 years experience at EDF, Jourde said that despite the closure of thermal power plants in the years to come, current market signals into the 2020s do not suggest a price that would allow for new investments, at least not without a “meaningful carbon price”.

“The European Commission is pleased that the short-term market is working well, but it has not addressed the issue of long-term investment in low-carbon technologies,” said Jourde. “And I don’t think it will look at it,” he added. “But it’s not the short-term market that will trigger investment in the next ten or twenty years. We won’t consider investing in low-carbon assets such as nuclear, hydro or clean coal [including CCS] if there are no long-term contracts,” he added.

EDF’s views on long-term contracts largely reflect those of Foratom – the Brussels-based European nuclear trade body – which last week said the European Commission should submit proposals to mitigate the revenue risk over 20 to 30 years through co-investment with contractual sharing of risks between large consumers and electricity producers, or a market for long-term contracts based on average cost pricing.

EDF’s Hinkley Point contract in the UK, which will cover 35 years worth of nuclear power output, is an example of how the company would like to underwrite its future investments in large-scale, low-carbon generation. EDF has just begun construction of the 3.2GW plant.

EDF is currently in the testing phase of the third unit at its 1.65GW Flamanville nuclear plant off the coast in Normandy, scheduled to start in 2019, seven years delayed.

Strike price

Jourde considered the UK’s system of contracts for difference (CfD) to be one that is likely to be discussed in France. Under CfDs, producers sell their electricity on the wholesale market, but can be paid a top-up by a government-run company if the electricity price falls below an agreed strike price.

The strike price should reflect the cost of investing in a particular technology, although in the case of Hinkley Point it was negotiated between EDF and the UK, as opposed to being administratively set.

For nuclear power in the UK the levelised cost, which takes into account the entire lifespan of a power plant, is estimated to be £95.00 (€112.00)/MWh for a plant coming online in 2025 according to most recent government figures published last November.

The CfD model allowed for EDF’s 3.2GW Hinkley Point nuclear plant to receive the UK government’s approval stamp in October 2013 at a strike price of £92.50 (€106.20 using Thursday’s exchange rate)/MWh, inflation-linked to 2012 prices, over 35 years once the plant generates electricity.

“I think there will be more contracts following this type in the future,” said Jourde.

European plans

Elsewhere in Europe, only Finland, Hungary, Slovakia, Belarus and Turkey have firm plans to build new nuclear power plants.

The Hungarian, Belarussian and Turkish plants will all be built at least in part by Russian state-owned company Rosatom.

In north Finland, the producer Fennovoima will start construction of the 1.2GW Hanhikivi 1, with capital costs estimated at €6-7bn, with completion due in 2024.

Meanwhile for EDF, even in the absence of new investments, the costs of maintenance and extending the lifetime of current nuclear plants from 40 to 50 years will require average electricity prices at €55.00/MWh until 2025. By comparison, the Calendar Year 2020 Baseload contact in the French power market was assessed at €35.50/MWh on Wednesday this week – almost €20.00/MWh below EDF’s desired price to allow a retrofitting the nuclear plants.

Apr 26 - BHP Billiton puts U.S. shale gas assets on the block again 

BHP Billiton has put its Fayetteville shale gas assets in the United States back on the block, the world's largest miner said on Wednesday, as it seeks to focus on more lucrative opportunities in oil.BHP first tried to sell the Fayetteville assets more than two years ago, having made the shale gas investment in 2011 before writing it down by $2.8 billion a year later after gas prices dropped. Click here to read full stories.

Apr 26 - Gazprom CEO sees share of EU gas market rising despite LNG rivals 

A new pipeline from Russia's Arctic fields to Germany will boost Moscow's share of the European gas market despite competition from Qatar and the United States, and will also mean much less fuel goes via Ukraine, Russian gas monopoly Gazprom said.Chief Executive Alexei Miller told Reuters supplies via Ukraine would fall after 2020, but not stop entirely as Moscow has previously threatened, when the world's largest gas firm opens a pipeline under the Baltic Sea. Click here to read full stories.

Apr 26 - Norway doubles Barents Sea oil and gas estimate, alarms green lobby 

Norway's portion of the Barents Sea could contain twice as much undiscovered oil and gas as previously thought when a newly mapped area bordering Russia is included, raising the prospect of drilling in environmentally sensitive ice-covered waters.Norwegian governments have often said they will only drill in ice-free areas in the Arctic, both because companies lack technology to clean up oil spills onto ice and because icebergs can damage drilling installations. Click here to read full stories.

Apr 25 - Chevron to sell Bangladesh gas fields to Chinese consortium

Chevron Corp is selling its three Bangladesh gas fields, worth an estimated $2 billion, to a Chinese consortium as the U.S. oil and gas group looks to shed non-core assets this year. The deal, if completed, would mark China's first major energy investment in the South Asian country, where Beijing is pumping in billions of dollars in a race with New Delhi and Tokyo for influence. Click here to read full stories.

Apr 21 - East Asia LNG index falls 11% on strong supplies (ICIS)
The ICIS May East Asia Index (EAX) for spot LNG cargoes averaged at $5.475/MMBtu over its period as the front month index, falling 11% from the April average of $6.118/MMBtu, as global supplies remained untested by any major problems and ahead of any potential increases in electricity demand that might arise when east Asian and Middle Eastern consumers enter summer in the coming months. The May EAX reflects deliveries into China, Japan, South Korea and Taiwan. It was assessed for the final time at $5.463/MMBtu on 14 April, down $0.162/MMBtu since becoming the front month on 16 March. The contract held fairly steady over the course of the month, with a small increase in early April to $5.700/MMBtu, after some buying interest from countries including India, Jordan and Kuwait, and on the back of a short-term outage in Australia.
- The second of the three 5.2 mtpa trains at Australia’s Gorgon liquefaction plant underwent a planned shutdown from 27 March, but this was largely counter-balanced by the facility’s third train starting-up production, confirmed by US operator Chevron in late March. Train two was heard to be returning to action in mid-April, which should allow the plant to build back up towards its full 15.6 mtpa capacity.
- The May EAX was up 29% from the May EAX average the year before of $4.256/MMBtu, reflecting influences including stronger oil prices this year. Although spot-traded LNG is priced according to individual deals between buyers and sellers, spot supplies compete against volume available through long-term oil-indexed contracts, and oil therefore exerts an important influence on the market.
- The new production from Gorgon train three was joined by another first for the supply side as Malaysian producer Petronas in late March loaded the first cargo from its 1.2 mtpa PFLNG Satu project onto the 150,000 cubic metre (cbm) Seri Camellia LNG tanker. This was the first ever LNG cargo produced from a floating liquefaction project, with the PFLNG Satu moored at the Kanowit gas field some 180km offshore Sarawak. The cargo was due to be delivered to India in mid-April.

Global LNG Markers for May Delivery
- US exports continued to build, with 16 tankers departing the Sabine Pass liquefaction plant in Louisiana from mid-March to mid-April, up from 13 during the previous month. Sabine Pass started up its third 4.5 mtpa train in the first quarter of this year, taking its production capacity up to 13.5 mtpa, while a fourth train should increase the total to 18 mtpa by the end of the year.
- Angola LNG also saw steady output from its Soyo liquefaction plant in west Africa. In addition to regular delivered ex ship (DES) cargo tenders, where the LNG is sent to the consumer aboard one of Angola’s own project-vessels, the company also held in the past month its first tender for a free on board (FOB) cargo, where the winner of the tender would bring its own ship to Soyo to pick up the volume. Oil major BP won the tender and was expected to pick up the LNG on its 152,000cbm vessel the British Diamond at the end of April.
- Egypt’s 3.6 mtpa Idku liquefaction plant has been operating well below nameplate capacity in recent months as high domestic gas demand has restricted the availability of feedgas to be turned into LNG. There were signs of an increase in output in recent weeks, however, with the plant’s first cargo of the year departing aboard the 155,000cbm Provalys on 30 March and the second on the 160,000cbm Maran Gas Delphi on 16 April.
- Spreads between the EAX and other regional indices have narrowed since the start of the year, reducing the potential for intra-basin trades, such as reloads from Europe to China and Japan. The May EAX average was only $0.810/MMBtu above the Northwest Europe Index (NEX) May average of $4.665/MMBtu, compared with a $2.409/MMBtu spread seen for January, when east Asian spot prices were at their peak so far this year, pushed higher by an Australian production outage during the peak winter demand period.
- The May EAX average was $0.377/MMBtu above the South America Index (SAX) of $5.098/MMBtu, down from a $1.008/MMBtu spread for January. Central and South America saw some continued buying interest over the past month, with Mexico actively looking for cargoes and Brazil showing increased appetite in recent weeks after a slower start to the year.
- Looking forward, Norway’s 4.3 mtpa Snohvit liquefaction plant is due to undergo maintenance from mid-May to mid-June, although this is not expected to have a large impact on the overall global balance.
- There are new LNG regasification terminals due to come online in China that could prove a potential boost to demand. Guanghui Energy is looking to commission its 0.6 mtpa Qidong LNG terminal in Jiangsu province soon, while Sinopec is awaiting final regulatory approvals for its 3.0 mtpa facility at Nangang in Tianjin province.
- In Japan, meanwhile, availability of nuclear power generation will continue to have an impact on the country’s need for imported gas. Kyushu Electric has submitted applications to restart the 1.2GW number three and four reactors at its Genkai power plant this summer and Kansai Electric is preparing the return of its 830MW number three and four reactors at Takahama following the removal of a legal injunction.

Apr 20 - Australian govt "encouraged" by steps to avert gas crunch, but says more to be done 

The Australian government said it was "encouraged" on steps taken to avert a gas crisis after meeting on Wednesday with producers and the energy market operator, but it held out the threat of regulatory steps to address any supply shortages.Australia's energy market operator and east coast liquefied natural (LNG) gas exporters updated Prime Minister Malcolm Turnbull on Wednesday on measures taken since a March meeting to discuss a domestic gas crunch expected to emerge from 2019. Click here to read full stories.

Apr 18 - Dutch government plans 10% cut to Groningen gas production (ICIS)
  The Dutch government plans to reduce the Groningen low-calorific natural gas (L-gas) production cap by 10% for gas year 2017, economy minister Henk Kamp said in a letter to parliament on Tuesday.
  The decision comes in response to advice issued by government monitoring agency the state supervision of mines (SodM), following a review of seismicity in the region. The current Groningen production plan has capped annual output at 24 billion cubic metres (bcm) for the five years from gas year 2016. A 10% reduction in gas year 2017 would therefore equate to a 21.6bcm production ceiling for the 12 months from October 2017.
  Reduced production in gas year 2017 will increase the strain on high-calorific gas (H-gas) conversion as a source of supply and the use of the 6bcm capacity Norg storage site as a source of flexibility. According to data from grid operator GTS, 15bcm of H-gas was converted to the L-gas grid during winter 2016, up from 11.7bcm in winter 2015 and 5.5bcm in winter 2014.
  The development lifted gas prices at the Dutch TTF during the afternoon and into the 16:30 London time assessment. The Day-ahead, front-month May ‘17 and Winter ‘17 all began to rise shortly before 15:00 and were close to their intra-day highs by 16:30. Winter ‘17 rose by €0.525/MWh session on session to a six-week high of €17.675/MWh, according to ICIS price assessments.

New advice
  Minister Kamp said that new advice from SodM on 13 April made two sets of recommendations based on whether a limit on earthquake density – the number of earthquakes per square kilometre per year – is breached in the future or not. If the limit is exceeded, SodM said, then it advises lowering production from the present 24bcm limit, starting with a 10% reduction. The agency also advised against seasonal fluctuations at this reduced level – as is already the case – and permanent monitoring of seismicity. If the limit is not exceeded, SodM advised among others things, that the government maintain the 24bcm production limit, avoid fluctuations in production and to conduct further research and investigations to optimise and reduce fluctuations further.
  In the letter to parliament, Kamp said he planned to table a motion to adopt the agency’s advice and reduce production in gas year 2017 by 10%, even before the regulated evaluation of production and seismicity on 1 October. The minister said this was because of an increase in earthquake density in the particularly vulnerable region of Loppersum. Kamp said that since October 2016, earthquake density in Loppersum had increased from 0.12 to 0.22. The upper limit is 0.25. The minister did note, however, that the number of earthquakes with a magnitude of more than one on the Richter scale across the Groningen region had more than halved from 77 in the 2013 calendar year, to 36 in 2016.
  Production from the Loppersum region has been restricted by a court order since April 2015, with just 1bcm produced in the 2016 calendar year. This is down from 17bcm in the 2013 calendar year. Kamp said he would work with Groningen field operator NAM and GTS to investigate how production in the Loppersum region can be further reduced. The current plan contains a provision to increase production up to 30bcm in the event of below-average temperatures across the year, but the minister did not say if and how this provision would change under a new lower cap.

Outlook
  On 22 May, the Dutch council of state – the Netherlands’ highest general administrative court – will hear objections to the government’s five-year Groningen production plan, with a ruling due “a few months later”. In November 2016, the court received 22 admissible appeals against the Dutch government’s latest production plan. By the end of the summer, the Dutch government plans to make a final decision on whether or not to invest in a new nitrogen plant to boost H- to L-gas conversion capacity.

Apr 13 - New U.S. pipelines to drive natural gas boom as exports surge 

U.S. energy firms are scrambling to finish a slew of pipelines that will unleash rich reserves of shale gas in Pennsylvania, West Virginia and Ohio as the nation prepares to become one of the world’s top natural gas exporters.The pipelines are expected to boost output from shale fields in the three states by giving producers access to new domestic and international markets. Click here to read full stories.

Apr 12 - Saudis, oil majors discuss gas investments ahead of giant IPO 

Saudi Arabia and international oil companies have discussed gas venture opportunities inside the kingdom and abroad as part of the top crude-exporting country's drive to diversify investments before the listing of national energy giant Saudi Aramco.Saudi officials explored investment opportunities with firms including BP and Chevron to help develop its gas reserves, the world's sixth largest, at a time of booming energy demand at home, four industry sources told Reuters. Click here to read full stories.

Apr 05 - Groningen production set to fall year on year this summer (ICIS)
- Low-calorific gas (L-gas) fundamentals in the Netherlands are finely balanced heading into the summer injection season, with stocks at the Norg L-gas facility beginning to be replenished from their lowest level in at least seven years.
- The final level of permitted Groningen gas production remains uncertain following volatile winter weather, but summer production is likely to fall well short of output in summer 2016.
- Average consumption would help to ease fundamentals and injection demand is expected to be lower due to a capacity restriction at Norg, but conversion of high-calorific natural gas (H-gas) to the L-gas grid will be crucial this summer.
- Quality conversion may need to increase significantly from the 8.6 billion cubic metres (bcm) converted in summer 2016 in order to fill L-gas stocks and meet summer consumption.

Summer demand
- According to data from production and storage operator NAM, L-gas stocks at Norg stood at 5.8TWh (590 million cubic metres (mcm)) on 28 March, down from 900mcm on the same day last year.
- In addition to storage demand, summer L-gas consumption will also need to be met. According to grid operator data, combined domestic Dutch consumption and L-gas exports to Germany and Belgium have averaged 14.7bcm during the summer in the past four years, ranging between 13.2-16.3bcm and totalling 15.2bcm in summer 2016.
- Assuming average consumption and maximum injections, summer L-gas demand could therefore total 20.4bcm. The summer 2016 total was 21bcm.

Summer production
- Groningen output may only cover a little more than half of summer demand for Dutch L-gas during summer 2017, depending on any potential increase to the annual production cap.

Conversion
- The shortfall between Groningen production and the total demand for Dutch L-gas can be covered, to an extent, by H-gas conversion via nitrogen blending.
- Assuming no increase to the production cap, Groningen output could be pegged several billion cubic metres below summer 2016’s 13.9bcm output.
- This could mean a significant increase in H-gas conversion, which totalled 8.6bcm during summer 2017, if L-gas storage sites are to be filled by the end of the summer period.
- The additional Dutch demand has mostly been covered by Russian gas in recent years, but Norway and LNG may also compete to supply the Netherlands this summer.

Apr 04 - Qatar restarts development of world's biggest gas field after 12-year freeze 

Qatar has lifted a self-imposed ban on development of the world's biggest natural gas field, the chief executive of Qatar Petroleum said on Monday, as the world's top LNG exporter looks to see off an expected rise in competition. Qatar declared a moratorium in 2005 on the development of the North Field, which it shares with Iran, to give Doha time to study the impact on the reservoir from a rapid rise in output. Click here to read full stories.

Apr 03 - LNG trio to test leverage in push to free-up purchases 

The world's gas industry is descending on Tokyo this week with something other than cherry blossoms on its mind: a trio of Asian LNG buyers testing their collective muscle in a push for more flexible long-term contracts for the fuel. Korea Gas Corp (KOGAS), Japan's JERA and China National Offshore Oil Corp (CNOOC) - whose joint liquefied natural gas volumes account for a third of global LNG trade - are attempting to cement a shift in power from producers to importers amid a supply glut that is expected to persist into the early-2020s. Click here to read full stories. 

Apr 03 - NAmerico unveils natural gas pipeline plan to relieve Permian glut 

NAmerico Partners LP is proposing a multibillion-dollar pipeline to ferry natural gas from fast-growing fields in West Texas to the Gulf Coast, the company said on Monday, angling to match plans by rivals such as Kinder Morgan Inc. The pipeline, one of at least three being considered to ease a looming gas glut in the Permian producing region, would link to existing lines, including those that export gas to Mexico and to a Cheniere Energy Inc liquefied natural gas export facility under construction. Click here to read full stories.

Mar 29 - After six decades, U.S. set to turn natgas exporter amid LNG boom 

The last time the United States was a net exporter of natural gas was in 1957, when Dwight Eisenhower was president. That should change in 2018 when the country is expected to become the world's third-largest exporter of liquefied natural gas (LNG). By the end of next year, U.S. LNG export capacity in the lower 48 states will top 6 billion cubic feet per day (bcfd), or 8 percent of the country's domestic consumption, up from zero at the beginning of 2016. Six bcfd of gas can fuel about 30 million U.S. homes, or almost every house in California, Texas and Florida combined. Click here to read full stories.

Mar 24 - World's top LNG buyers form alliance to push for flexible contracts 

The world's biggest liquefied natural gas (LNG) buyers, all in Asia, are clubbing together to secure more flexible supply contracts in a move which shifts power to importers from producers as oversupply grows. Korea Gas Corp (KOGAS) said on Thursday it had signed a memorandum of understanding in mid-March with Japan's JERA and China National Offshore Oil Corp (CNOOC) to exchange information and "cooperate in the joint procurement of LNG." Click here to read full stories.

Mar 23 - ICE to offer first U.S. Gulf Coast LNG futures contract

With the United States about to become a net exporter of natural gas for the first time in 60 years, Intercontinental Exchange Inc said on Wednesday it would begin trading the first-ever U.S. liquefied natural gas futures contract in May. ICE said the contracts would be cash-settled against the Platts LNG Gulf Coast Marker price assessment and use Platts-derived U.S. GCM LNG forward curves for daily settlement purposes. The curves will have an initial term of 48 months. Click here to read full stories.

Mar 22 - U.S. oil and gas industry reaps the benefits of international trade: Kemp 

Rising exports have thrown a lifeline to U.S. shale producers and refiners, giving them an additional outlet at a time when the domestic market has been at risk of becoming saturated. The United States exported record quantities of natural gas, propane, gasoline, distillate fuel oil and light crude last year while continuing to import the heavy oils needed by its refineries. Click here to read full stories.

Mar 14 - Utilities consider closures, M&A as gas storage sites struggle

European utilities are losing billions of euros from gas storage facilities, potentially triggering site closures and divestments in a market suffering from oversupply and weak demand. Around 5 percent of European storage capacity has been closed this decade and other sites are at risk of closure because weak gas price spreads do not allow operators to cover their fixed costs. Click here to read full stories.

Mar 08 - Low volatility hampers trade of TTF, NBP seasonal gas contracts (ICIS)
  Reduced liquidity on the front two seasonal-delivery contracts continued to restrict traded volumes at the NBP and TTF in February, which fell by 23% year on year at both hubs.
  According to brokered trade data collated by ICIS and exchange trade reported by ICE and PEGAS, a total of 1,525TWh was dealt at the TTF, 71% of which was traded over-the-counter (OTC). At the NBP, trade totalled 1,412TWh, 43% of which was dealt OTC.
  The key factor behind the downtrend at both hubs was lower trade on the front two seasons, as was the case in January. Liquidity early in 2017 has fallen compared to 2016 due to low volatility and a persistently tight forward summer/winter price spread.
  Brent crude has traded sideways within a $4/bbl range since the beginning of December 2016 and only a $3/bbl range in February. In 2016, Brent traded within a $7/bbl range as it began to stage a recovery from a decade-low. With oil falling to provide the European gas curve with any clear direction, volatility has slumped at the key hubs. ICIS’ TTF front summer and winter volatility indices averaged 42% and 39% in February 2016, but only 20% and 17% in 2017. The front calendar year volatility index was down from 40% to 14%.
  The front winter premium to the front summer at the NBP and TTF was also lower than in February 2016, despite fresh uncertainties about the summer injection capability of Rough in Britain. According to ICIS price assessments, the front summer/winter spread at the NBP and TTF averaged 5.76p/th and €1.66/MWh in February 2016, but only 5.52p/th and €1.02/MWh in the same month this year.
  The impact on curve trade was felt in both the brokered and exchange markets. According to OTC data collated by ICIS, liquidity on the front two seasons was down 38% at the NBP and 47% at the TTF, while total curve volume was down 31% and 29% respectively.
  On the ICE exchange, trade of NBP quarters and seasons were down 21% and 37%, while at the TTF the drop was 42% and 19% respectively, with a 52% slump on calendar year products.
  At the TTF, strong trade of monthly delivery contracts partially offset declining trade further out. Strong winter demand, a hefty draw down on gas stocks and the resulting low storage levels have supported volatility and trade on shorter-term products this winter. The average TTF day-ahead and front-month volatility indices were up 14 and one percentage point respectively in February 2017, year on year.
  Trade of TTF monthly contracts was up 82% at the ICE at 127TWh and up 31% at 283TWh in the OTC market. Trade of NBP months via the ICE were up 11% at 397TWh but down 21% in the OTC market at 174TWh, and therefore down 1% overall.

Mar 06 - Pipe dream? China faces daunting task to suck in gas and wean itself off coal 

China has set itself a staggering task to cure its smothering pollution: switching coal-fired boilers and heating systems in at least 1.2 million households in 28 of its smoggiest northern cities to run on gas or electricity. By October. Beijing's latest crackdown on pollution, outlined in a policy document dated Feb. 17 and seen by Reuters this week, dangles a potentially game-changing carrot for the country's saturated global natural gas market. Click here to read full stories.

Feb 23 - China's soaring LNG demand to help rein in global glut 

China's soaring demand for liquefied natural gas is sparking industry hopes that a supply overhang causing a slump in prices will end sooner than initially anticipated. China's imports of LNG in January rose 39.7 percent from a year earlier to 3.44 million tonnes, data from the General Administration of Customs showed on Thursday. Click here to read full stories.

Feb 23 - China state firm in preliminary deal to buy Chevron's Bangladesh gas fields 

China's state-run Zhenhua Oil has signed a preliminary deal with Chevron  to buy the U.S. oil major's natural gas fields in Bangladesh that are worth about $2 billion, two Beijing-based Chinese oil executives said. Zhenhua is a subsidiary of China's defence industry conglomerate NORINCO. A completed deal would mark China's first major energy investment in the South Asian country, where Beijing is competing with New Delhi and Tokyo for influence. Click here to read full stories.

Feb 20 - U.S. natural gas market tightens despite exceptionally mild winter: Kemp

Warm weather has masked how much the underlying supply and demand picture for U.S. natural gas has tightened this winter thanks to lower production and strong exports. The winter heating season of 2016/17 has so far been even milder than that of 2015/16, which was itself the warmest winter on record.Click here to read full stories.

Feb 17 - Germany’s gas storage capacity market at turning point (ICIS)
- Two storage capacity allocation platforms are set to fill a gap after the closure of Germany’s dominant platform store-x at the end of 2016. It remains to be seen whether the market will consolidate with one provider or if the market will be carved up by a number of auction platforms.

PRISMA in focus
PRISMA is Europe’s dominant cross-border capacity allocation platform and has been venturing out into the storage capacity auctioning business after the closure of store-x at the end of 2016. Germany’s astora and EWE Gasspeicher, along with Austrian energy company OMV, were the first storage operators to sign up for the pilot auctions at the beginning of the year. On Friday, astora is offering capacity for the upcoming gas year for its Haidach facility and the Jemgum site in week 8 on the PRISMA platform. It would be PRISMA’s second storage auction. The first one was hosted by OMV at the beginning of the month.

ICE, ICE maybe
The Intercontinental Exchange (ICE) Endex is mostly known as an exchange operator and clearing house but has more recently expanded into the storage allocation business. It currently hosts auctions for virtual storage with delivery at the Dutch TTF natural gas hub for wholesaler GasTerra. ICE also currently offers capacity for the German Innogy Gas Storage for its two facilities with a central delivery point.

Third option
Besides ICE ENDEX and PRISMA, a third option exists. Some major German storage operators including VNG, Storengy and Uniper all offer their capacity at their individual platforms. These however require large IT investments and are not necessarily viable for smaller players. Energy company Uniper, which was a 32% shareholder in store-x, set up its own storage capacity platform in September 2016, around the same time store-x announced its closure by the end of 2016. When store-x announced its plans to end its service it cited competition from technological advances and alternative platforms as some of the factors behind the decision. “Several store-x users simply built their own platform which was the main reason the customer base shrank so much,” said Jorg Albers, senior manager at innogy Gas Storage NWE. In contrast to cross-border capacity, storage capacity does not have to be allocated via platforms and operators are occasionally also approached directly by customers.

The store-x option
Germany-based store-x was founded in 2006 as a secondary storage capacity allocation platform but many storage operators used it during the last years as a primary tool, predominantly for the German market, explained Andre Janssen, head of storage marketing at EWE Gasspeicher. “Store-x had a claim to become a European-wide storage capacity platform and was seen by some as a model project. It was however dominated by German storage offerings from its start and could not leave this niche for the German market over the past years,” Albers said.

Outlook
Market participants contacted by ICIS are in conversations with both providers and continue to weigh their options whether to side with ICE Endex or PRISMA. If a single platform was to come out on top, it might further pull in storage operators from other countries as the pool of potential customers is likely to grow.

Feb 16 - Spot European gas prices match Asia LNG on cold snap (ICIS)
 The ICIS March East Asia Index (EAX) for spot LNG cargoes was assessed for the final time at $7.125/MMBtu on 15 February, down $1.200/MMBtu since becoming the front month on 16 January. As a front month, the contract had peaked on its first day of assessment at $8.325/MMBtu on 16 January and was at its low on the final assessment day.
 During its period as front month, the March EAX assessment averaged at a price of $7.716/MMBtu, which was down 19% from the rolling front-month average, but up 49% from the March EAX assessment average the year before. The ICIS EAX is the arithmetic average of the daily delivered ex ship (DES) assessments for China, Japan, South Korea and Taiwan.
 EAX prices moved steadily downwards over the course of the month, continuing the trend seen since late December, when the March EAX had peaked at $9.200/MMBtu on the back of demand for replacement cargoes to cover an outage at train one of Australia’s Gorgon liquefaction project. Gorgon returned to production at the start of 2017, and supply received a further boost as west Africa’s Angola LNG resumed spot cargo tenders in January after a halt in the second half of December.
 Improved output eased pressure in the market, while major buyers such as Japan, South Korea and China had sufficient inventories to avoid entering the market in any force during the latter part of winter. They were also able to meet extra requirements by turning up volumes from their long-term suppliers. Trading activity in the region also quietened at the end of January due to the Chinese New Year holidays.
 The strong year-on-year gain of 49% reflects higher oil prices this year. Although spot-traded LNG is priced according to individual deals between buyers and sellers, spot supplies compete against volume available through long-term oil-indexed contracts, and oil therefore exerts an important influence on the market.  

 High prices in Europe
 Unexpectedly high prices in Europe during the past month made the region an attractive alternative destination for spot cargoes. A cold snap sent spot gas and near-curve prices in southern France and Spain to the highest in the world. The Spanish PVB gas price for March, for example, hit $9.460/MMBtu in late January, around $1.500/MMBtu above the March EAX at the same time. Spain, southern France and Portugal all received spot-tendered cargoes from Angola.
 In early February, meanwhile, prices in northern Europe almost reached EAX levels when the UK NBP March contract approached $7.500/MMBtu on concerns over a late-winter freeze that was then predicted for late February and March. Prices soon fell back, however, as the weather outlook changed.
 Major deals during the period included Italian producer Eni winning a 15-year contract to supply Pakistan LNG with 180 cargoes from July 2017 to July 2032 at a price of 12.29% of Brent crude and Swiss-based trading house Gunvor agreeing to supply the same company with 60 cargoes from July 2017 to July 2022 at 11.62% of Brent. Egypt’s EGAS agreed with Russia’s Rosneft, Oman’s OTI and France’s Engie for the delivery of up to 45 cargoes during April-December 2017. Argentina’s ENARSA procured 16 cargoes for its southern hemisphere winter demand, agreeing to take 11 from trader Trafigura, three from trader Glencore and two from US exporter Cheniere for April-September this year.

 Cargo moves

 Notable voyages recorded on ICIS analytics platform LNG Edge during mid-January to mid-February included the arrival of the first commercial delivery to France’s new Dunkirk LNG terminal aboard the 210,000cbm Murwab from Qatar on 22 January and the departure from Peru on 6 February of the first cargo from that country headed towards the UK, aboard the 134,000cbm Gallina.
 The strong prices in the south of France were evidenced by highly unusual shipments from the north to the south of France. The 154,000cbm GDF Suez Point Fortin and the 75,000cbm Global Energy both picked up cargoes from the Montoir terminal in northwest France, sailed around Spain, then unloaded them at Fos Cavaou in southern France a few days later, as France’s onshore pipeline network struggled to pump gas southwards fast enough to keep up with demand.
 Some 14 cargoes departed the southern US Sabine Pass export project over the January 16-February 15 period, for varied destinations including Japan, Mexico, India, Turkey, Portugal and Spain. US exports will soon build on their growing contribution to the market with the expected loading of the first commercial cargo from Sabine Pass Train 3 in March. First LNG from Train 3 at Australia’s Gorgon project is, meanwhile, expected to follow early in the second quarter of the year.

Feb 03 - Seasonal gas trade pulls NBP, TTF liquidity down in Jan17 (ICIS)
- The volume of gas traded at the Dutch TTF and British NBP hubs dropped year on year in January, according over-the-counter (OTC) and exchange trade data collated by ICIS. A total of 1,727TWh was dealt at the TTF, of which 73% was OTC, representing a 15% drop compared to January 2016. At the NBP, 1,392TWh was traded, 42% OTC, which was down by 29% year on year.
- Declining interest on the front two seasons was the key driver behind the downtrend at both hubs, with less trade on the far curve beyond these contracts also factoring in. The lower curve volume was likely due to particularly strong trade at the start of 2016, when shippers were adjusting gas positions in light of oil’s fall to decade-low prices.
- Trade of the front two seasons at the TTF early in 2017 may also be suffering from a tight forward summer/winter price spread, with some counterparties likely to be waiting for a better opportunity to hedge storage capacity for the upcoming 2017/18 cycle. According to ICIS assessments, in January the TTF Summer ‘17 contract closed on average €1.08/MWh below Winter ‘17, down 12% compared to the equivalent products one year before.
TTF increases lead
- Trade of the front-month contract in January was symptomatic of the divergent growth trends at Europe’s two biggest hubs. At the TTF a record volume of front-month trade was recorded via the ICE Endex exchange and OTC at 448TWh, representing a 27% year-on-year increase. At the NBP the volume traded fell by 9% to 380TWh.
- Trade of the four ICIS-assessed prompt-delivery contracts rose to a year-high 90.4TWh at the TTF, driven up by unseasonably cold temperatures and strong demand. The 58.6TWh dealt on the same four NBP contracts was the highest since May 2016.
Volume splits
- OTC trade at the TTF fell by 17% year on year in January to 1,268TWh, according to ICIS data. Trade via the ICE Endex and PEGAS bourses fell by 8% to 458TWh, split approximately 82:18 in favour of the former.
- Monthly contracts were the only products to post significant year-on-year growth, as trade on the rest of the curve slumped. Trade on the prompt was little changed, as strong demand and storage withdrawal optimisation supported liquidity.

Jan 27 - Australia's LNG projects face major delays, benefiting U.S. producers

Australia's plans for a huge increase in its production of liquefied natural gas are being dealt a big blow by a series of production delays, as energy companies struggle with technical problems and cost overruns. The country is still likely to become the world's biggest LNG exporter, dispatching about 85 million tonnes a year by the end of the decade, up from 30.7 million tonnes in 2015 and 45.1 million tonnes last year. Click here to read full stories.

Jan 26 - Gazprom says Poland transit deal delay endangers gas exports to EU

Kremlin-controlled Gazprom, Europe's largest gas supplier, has warned of risks to its deliveries to Europe via Poland as Warsaw has yet to accept new terms for gas transit. "We've heard that Poland does not intend to prolong the transit deal. This puts at risk supplies to European countries, including Germany," Gazprom's deputy chief executive Alexander Medvedev said in an interview cleared for Wednesday publication. Click here to read full stories.

Jan 25 - LNG demand, prices surprise, but wave of new supply yet to crest: Russell

China's record imports of liquefied natural gas (LNG) in December, and the doubling in spot Asian prices in the past six months, appear to contradict the prevailing market view that supply is overwhelming demand for the super-chilled fuel. But while demand for LNG has definitely firmed in recent months, and not just from China, it's still likely the case that the wave of new projects will push the market into surplus - just perhaps not by as much as some observers had feared. Click here to read full stories.

Jan 25 - U.S. LNG exports shift to Europe from Asia

U.S. liquefied natural gas (LNG) exporters have shifted their focus to Southern Europe from Asia as cold weather and problems with Algerian gas supply have driven Europe's gas prices higher. Gas prices in Europe are at their highest premiums to U.S. gas prices for three years. Several cargoes have already made their way to Europe, and analysts expect more to come. Click here to read full stories.

Jan 24 - What’s in store for the global LNG markets in 2017 ? (ICIS)
- 2017 will be another year of big change for the global LNG market as more new Australian production starts up and the momentum then swings to the US.
- Concerns will persist on demand from East Asia, with nuclear plants likely to come back in Japan and South Korea while India will remain an alluring destination for LNG sellers as infrastructure develops and independent buyers come to the market.
- In the Atlantic, the increased role of Henry Hub-linked LNG will influence pricing in the global market.
- South American demand will remain volatile while Europe will offer a market of last resort, albeit with strong competition from Russian and Norwegian pipe gas.
- Africa will continue be an exciting region with new production planned from Cameroon and progress expected in Mozambique. The Middle East is set to absorb spot and short-term volumes.

Jan 19 - Global oil, gas discoveries drop to 70-year low -Rystad Energy

Oil and gas discoveries around the world dropped last year to their lowest since the 1940s after companies sharply cut back in their search for new resources amid falling oil prices. The decline in discoveries means companies such as Exxon Mobil and Royal Dutch Shell will struggle to offset the natural depletion of existing fields, reinforcing forecasts of a supply shortage by the end of the decade. Click here to read full stories.

Jan 06 - TRS natural gas premium over PEG Nord soars on LNG shortage (ICIS)
  The premium held by the southern French TRS natural gas hub over the northern French PEG Nord has soared and could increase further in the coming days, as a shortage of LNG supply puts stress on southeastern France’s gas network. “The spread could increase to €5.00-8.00/MWh, but it’s difficult to see it going past €8.00/MWh,” a trader at a utility said on Tuesday. “There’s a danger of a gas shortage but it is too soon to say what the full impact will be, as people are just coming back from the holidays,” he added, a reference to how a less liquid market generally gives off poorer pricing signals.
  The TRS Day-ahead contract closed €5.65/MWh above PEG Nord on 30 December 2016, its highest premium since 12 September. And forward prices indicate a wide spread could persist, with the TRS January ‘17 contract assessed €4.40/MWh above PEG Nord on the same day.
  A lack of LNG supply to southern France has led system operator GRTgaz to make requests of shippers to bring more LNG into the Fos LNG terminals, which are used to supply the TRS zone.

More LNG needed
“All it takes is the goodwill of the two or three main players to solve the problem. But it has to make financial sense for them [to bring in LNG cargoes],” said a second trader. The TRS Day-ahead price is currently more than €4.00/MWh above most other European hubs, including the liquid TTF and NBP, indicating southern France may be an attractive destination for cargoes. On the flip side, high Asian prices will continue to act as a draw on LNG cargoes, which may otherwise have been bound for Europe.
“I’m not sure about the physical restraints [of bringing LNG in], but it is unlikely to be in the short-term. Maybe by next month – it depends where they can divert cargoes from,” the second trader added.

The quickest way to get LNG supplies into France is from Algeria.
  The only vessel currently scheduled to arrive at Fos is the 76,000cbm Cheikh El Mokrani, according to ICIS LNG Edge. Send-out from the terminals is projected at 9 million cubic metres (mcm)/day until 5 January, 2mcm/day shy of GRTgaz’s requested level. Between 6-15 January, send-out is forecast to fall to 4mcm/day.

25mcm/day deficit
  The TRS zone as a whole is running at a deficit of around 25mcm/day, operator data shows. Total consumption is pegged at around 115mcm/day, with an additional 10mcm/day exported to Spain. On the supply side, around 35mcm/day is being imported from northern France via a set of pipelines called the north-south link, just shy of maximum capacity. Storage withdrawals have ramped up to around 46mcm/day, but are likely to dip due to maintenance at the Manosque site. The Manosque facility will be fully offline until between 3-5 January, while the operator undertakes maintenance work to guarantee the availability of full withdrawal capacity. Capacity had been restricted to just 50% since the start of the gas winter. Colder weather and associated higher weather-driven consumption could deepen the mire. Temperature in southern France is forecast at 2-4°C below seasonal norms this week, according to meteorologist WSI.

Due to the particular characteristics of the TRS zone and its relative disconnection from neighbouring markets, the price impact had not spread to other European hubs on Tuesday morning.

Jan 05 - Russia's Rosneftegaz closes Rosneft privatisation deal

Russian state holding company Rosneftegaz on Wednesday closed a deal with the Qatar Investment Authority (QIA) and commodities trader Glencore to sell a 19.5 percent stake in state-owned oil major Rosneft, Rosneft said. The privatisation deal, which Rosneft Chief Executive Igor Sechin called the largest in Russia's history, was announced by Rosneft in a meeting with President Vladimir Putin in December. Click here to read full stories.

Dec 29 - Our best wishes for a serene (and decisively less turbulent) New Year 2017 to all friends, tweeps, readers, followers and clients.

Dec 20 - Asian spot LNG in largest monthly surge since Feb'13 peak (ICIS)
  LNG demand from China and South Korea, as well as Australian supply outages, helped raise East Asian spot LNG prices to the largest month on month gain since the peak of the last super cycle in February 2013.
  The ICIS January ’17 East Asia Index (EAX) was assessed for the final time at $9.20/MMBtu on 15 December, climbing $1.95/MMBtu since becoming the front month on 16 November. It was the largest month on month gain in almost four years, harking back to a time when the EAX peaked at $21.43/MMBtu.
  The front-month EAX in 2016 has, to date, averaged $5.59/MMBtu, but has been on the ascendency since mid-September. Appetite from South Korea, which has sought spot LNG to replace the loss of nuclear power generation, has been central in pushing up prices from below $5.50/MMbtu in mid-September, to above $7.00/MMBtu by mid-November.
  LNG demand from China and South Korea, as well as Australian supply outages, helped raise East Asian spot LNG prices to the largest month on month gain since the peak of the last super cycle in February 2013.
  The ICIS January ’17 East Asia Index (EAX) was assessed for the final time at $9.20/MMBtu on 15 December, climbing $1.95/MMBtu since becoming the front month on 16 November. It was the largest month on month gain in almost four years, harking back to a time when the EAX peaked at $21.43/MMBtu.
  The front-month EAX in 2016 has, to date, averaged $5.59/MMBtu, but has been on the ascendency since mid-September. Appetite from South Korea, which has sought spot LNG to replace the loss of nuclear power generation, has been central in pushing up prices from below $5.50/MMbtu in mid-September, to above $7.00/MMBtu by mid-November.
  In theory, as spreads between the EAX and the ICIS Northwest Europe Index (NEX) widened, European re-exports can be used as a marginal supply source to the market. However, traders cautioned there was little LNG volume available in tank to re-export. With Europe seemingly well supplied from local production or nearby pipeline imports, LNG initially intended for Europe but diverted from source may be more likely. The arbitrage between the EAX and NEX for Feb ‘17 delivery rose from $1.60/MMBtu on 16 November, to $4.10/MMBtu on 15 December.
  Data from LNG EDGE shows that Europe’s largest receiving terminal, South Hook in the UK, has received five less cargoes in the 30 days to 15 December 2016 than over the same period last year.

Dec 15 - U.S. oil industry cheers Trump energy pick, seeks gas export boost

The U.S. oil and gas industry on Wednesday welcomed President-elect Donald Trump's choice of former Texas Governor Rick Perry to head the U.S. Department of Energy, and wasted no time making its first specific request of him: to support increased exports of America's natural gas overseas. Trump named Perry as his pick for the top U.S. energy job on Wednesday morning, handing the portfolio to a climate change skeptic with close ties to the oil and gas industry, and who previously proposed abolishing the department. 

Dec 06 - Dutch gas hub continues to build traded-volume lead over NBP (ICIS)
  Total traded volume at the TTF pulled further clear of the British NBP in November, according to data collated by ICIS. Liquidity at both hubs rose by around 4% month on month, but declining interest on the NBP curve saw total volume in Britain fall by nearly a third compared to November 2015.
  TTF volume grew by 6% over the same period, as a result of increased brokered trade of the day-ahead and near-curve contracts. A total of 1,783TWh of trade was recorded at the TTF in November, comprising 1,357TWh (76%) of brokered deals and 426TWh (24%) via the ICE Endex and PEGAS exchange platforms.
  In the over-the-counter (OTC) market, volume traded at the TTF dipped 2% compared to October 2016, but was up 10% year on year.
  Trade of the Day-ahead contract hit a record high of nearly 34TWh in November, bettering the previous record of 32TWh set in February 2016. This was driven by unseasonably cold weather across the month, as evidenced by a combined 5.5 billion cubic metres of demand for Dutch low-calorific natural gas – equal to 116% of the November average between 2012-2015.
  The TTF Day-ahead held a premium to the front-month contract on all but two days during November, according to ICIS closing price assessments, boosting the incentive for storage shippers to withdraw gas to trade on the spot market. Additional demand from Britain – satisfied via exports on the BBL pipeline and via Belgium – also helped to lift trade of the Day-ahead contract.
  The volume traded on other TTF prompt contracts fell in November however and this, together with a significant drop in trade of monthly contracts and the front year, helped to drive OTC volumes lower compared with October ’16. Greater interest in quarterly and seasonal delivery contracts meant the overall month-on-month drop was only marginal.
  Year-on-year growth at the Dutch hub was driven by increased trade of the front month, quarter and season, offsetting smaller drops on other contracts.
  In contrast, TTF exchange trade was down 3% year on year, but volumes rose by 34% compared to the previous month. The year-on-year trend was driven by a 19TWh drop in volumes on seasonal contracts traded via the ICE Endex bourse. A small reduction in trade was also seen on ICE’s quarterly products, offsetting an increase in trade of monthly and yearly contracts.
  ICE Endex accounted for around 82% of TTF exchange trade, with the remaining 18% traded via PEGAS. This split was unchanged compared to November 2015.
  The picture was very different at the NBP, where total volume fell by 33% year on year, despite rising 4% compared to the previous month. The 1,123TWh total comprised 601TWh (54%) of exchange trade and 521TWh (46%) of brokered trade.
  OTC volume at the NBP hit a two-year low, driven by reduced trade on key curve contracts. The volume dealt on the far-curve – longer dated quarterly and seasonal contracts – and the prompt partially arrested the trend at the British hub, but the NBP still fell to a record 836TWh OTC deficit to the TTF in November.
  The NBP Day-ahead recorded a 19-month high 24TWh of trade amid unseasonably cold weather and strong imports from mainland Europe via its two interconnectors.
  Exchange trade – predominantly through the ICE – was down 37% year on year but up 16% compared to October 2016, like at the TTF. Traded was down on all products compared to November 2015, but seasonal-delivery contracts in particular.
  Uncertainty stemming from Britain’s vote to leave the EU – particularly concerning currency volatility – has been cited by market sources as a key factor behind the recent downtrend. The euro-denominated TTF hub is currently regarded as a safer option for many European energy companies.
  The TTF has increased its combined volume lead over the NBP in every month since July, following the Brexit vote at the end of June. The Dutch hub’s 661TWh lead in November ’16 was a new record.

Dec 05 - Peru would face 'huge sum' if it scraps Odebrecht contract - junior partner 

Odebrecht SA's junior partner on a natural gas pipeline project in Peru told Reuters Friday that the government would have to pay $1.2 billion to $1.4 billion in compensation if it decides to rescind the current contract as financing is stuck on corruption concerns. Resuming construction on the $5 billion project could take up to three years if the Odebrecht-led group misses a January financing deadline and the government holds a new auction, said Mario Alvarado, corporate general manager of Peruvian construction group Grana y Montero. Click here to read full stories.

Nov 25 - Asian exchanges set to hit the gas on LNG trading

Asia may be the world's biggest consumer of liquefied natural gas, yet its LNG trading activity is minuscule as no exchange has managed to establish itself as a benchmark. That might be about to change. Following years of unfulfilled promises, two of Asia's leading exchanges - Singapore's SGX and Japan's TOCOM - this week announced they would join forces to create Asian LNG and electricity futures. Click here to read full stories.

Nov 24 - Global LNG buyers, sellers meet as Japan probes contract clauses

A new Japanese regulatory probe into sales restrictions for liquefied natural gas (LNG) contracts will be at the forefront of discussion as the industry's biggest buyers and sellers gather in Tokyo this week. Representatives from major LNG producers Qatar, Australia and Malaysia will meet with buyers from companies including Japan's Jera Co, the world's biggest buyer of the fuel, and Taiwan's CPC Corp to find ways to address a market where demand is only about 76 percent of supply, Thomson Reuters Eikon data shows. The overhang is leading the industry to question everything from how the fuel is priced to how it is sold. Click here to read full stories.

Nov 22 - Singapore Exchange (SGX) and Japan's Tokyo Commodity Exchange (TOCOM) said on Tuesday they have signed a memorandum of understanding to jointly develop Asia's liquefied natural gas (LNG) market, as well as electricity futures.
  As part of the accord, the exchanges plan to explore opportunities like co-listing LNG derivatives, as well as synergies between the pair's market distribution networks.
  SGX, which listed Asia's first electricity futures in 2015, will also share its experience with its Japanese counterpart, Loh Boon Chye, SGX's Chief Executive Officer, said in a statement.
  "We also look forward to drawing on SGX's experience in electricity futures, as a liquid electricity market is closely linked to the development of the LNG market," said Takamichi Hamada, President and Chief Executive Officer of TOCOM.
  SGX began pricing LNG in October 2015 when it launched its Singapore Sling index, assessing cargoes on a free-on-board Singapore basis. In September this year it launched a second index, the North Asia Sling.
  The latter index, which will price the super-cooled fuel for the Japanese, South Korean, Taiwanese and Chinese markets, was seen by market participants as a signal that the market continues to take pricing signals from traditional buyers in North Asia.
  Singapore, already Asia's main trading location for oil and refined fuel products, and Japan, the world's biggest consumer of LNG, had previously been in competition to establish Asia's main LNG hub.

Nov 21 - Australia to import LNG ? When the illogical makes sense: Russell 

Sometimes the seemingly illogical actually makes sense. Take the case of Australia, which will become the world's largest exporter of liquefied natural gas (LNG), but also may start importing the super-chilled fuel at the same time. Australia is in the final stages of completing more than $180 billion of LNG projects that will see it overtake Qatar as the world's largest supplier by the end of next year. Click here to read full stories.

Nov 17 - Asia absorbs steady increase in LNG as NBP volatility rises (ICIS)
  Spot LNG prices in East Asia have inched higher over the last 30 days while European gas hubs have been more volatile.
  The ICIS December East Asia Index (EAX) was assessed for the final time at $7.21/MMBtu on 15 November, having risen $0.36/MMBtu since becoming the front month on 17 October. The second front month contract, the January ‘17 EAX, closed at $7.33/MMbtu, representing a small $0.18/MMBtu rise.
  A larger-than-expected round of purchases from South Korean incumbent, KOGAS set the tone in the second half of October. It purchased around 15 deliveries across December to February, up from only four that it had initially sought. Prices which were said to average around $7.00/MMBtu, appeared to be at a market discount for January but this was due to extra flexibility granted to sellers regarding discharge dates. Sellers were able to maintain East Asian offers in the mid $7.00s/MMBtu for outstanding demand until the end of October but had to abandon ideas of a $0.25/MMBtu contango between December and January as market attention turned to the second front month at the beginning of November.

  The prospect of greater production as plants in Australia and the US ramp up after a string of maintenance outages was cited as one factor keeping a lid on the contango. Another was the mild winter weather forecasts for Japan. On the other hand, traders also pointed to possible weather-driven demand in late December and January from the Beijing and northern China markets.
  Taiwan too, has so far been more active this winter than in previous years. Though not a typical seasonal spot importer, lower-than-expected nuclear power generation, like in South Korea, encouraged its state-owned buyer to purchase a December delivery around $7.20/MMBtu at the beginning of November.
  As the EAX across both front months narrowed into the low-mid $7.00s/MMBtu range, various discussions for incremental supply to India also helped support the EAX. Indian buyers transacted for spot December and January volumes at or close to EAX levels in early November.
  Around this period, large tenders for supplies to Egypt and Pakistan over the mid-term forward curve consumed significant attention from traders. Opportunities for optimisation among traders for near-term deliveries to Egypt, India, Pakistan, and South Korea were also present however. One example from analytics platform, LNG Edge, being the churn involved in these two deliveries to India and South Korea.
  Image showcases diversion of Nigeria-sourced cargo afer approaching Ain Sukhna, EgyptRe-exports, or diversions, from Europe appear still to have been in the money with the EAX Dec’16 holding a premium at or above $1.50/MMBtu to the Northwest Europe Index (NEX) for most of the period.
  European gas hubs however, have been volatile with prices jumping, and then falling back, as winter supply profiles ease concerns over demand.
  The front months on the British NBP jumped by around $0.50/MMBtu in early November, widening premiums to the Dutch TTF to about $0.60/MMBtu on 2 November.
  The British premium over neighbouring Netherlands has been supported by a lack of available storage withdrawals over winter from the large-scale Rough site which has suffered extended outages in recent months.
  There is currently only one Qatari cargo due to arrive in the UK over the coming weeks, according to ICIS LNG Edge. The platform shows as many as six Qatari vessels that usually deliver to the UK are either en route to, or from, East Asia.

Nov 11 - ConocoPhillips aims to sell up to $8 billion in gas assets

ConocoPhillips, the largest U.S. independent oil producer, will sell up to $8 billion in natural gas assets and trim its capital budget by 4 percent next year to provide funds to bolster operations, executives said on Thursday. The moves highlighted not only the energy industry's increasing push for efficiency gains that reduce the cost of drawing oil and natural gas from the earth but also low commodity prices, which have hampered Conoco and peers the past two years. Click here to read full stories.

Nov 08 - French nuclear crunch causes European CCGT gas demand surge (ICIS)
- Demand for gas in power generation at many key European gas hubs surged in October, in response to nuclear supply problems in France and favourable clean spark spreads. This was a key factor in pushing Day-ahead contracts at many European gas hubs around 40% higher month on month.
- The main factor behind gas-fired generation demand rocketing in October was a series of outages at French nuclear generation facilities, which are the country’s dominant source for electricity. These supply concerns led to spikes in many European wholesale power markets.
- Looking ahead, the French Nuclear Safety Authority has said that four reactors will be taken offline between mid-December and mid-January, meaning nuclear availability will be restricted during a key demand period. A fifth reactor has already been taken offline.
- The supply crunch has impacted not only France, but neighbouring markets, and caused gas-fired generation in surrounding countries to ramp up in order to fill the supply gap.
- The combined-cycle gas turbine (CCGT) demand increase was a key factor in higher Day-ahead contracts at many European gas hubs, including the British NBP, Dutch TTF and French PEG Nord. Most Day-ahead contracts leapt by around 40% in October, with the TTF surging from €12.56/MWh on 3 October to €16.925/MWh on 28 October.
- Other factors contributing to the price rises included lower than normal temperatures across much of northern Europe, low send-out from British LNG terminals and uncertainty over British gas storage.

Nov 04 - Chesapeake Energy expects to exit 2017, 2018 with higher output 

U.S. natural gas producer Chesapeake Energy Corp reported a surprise adjusted profit, helped by lower expenses, and said it expects to exit the next two years at higher production rates. Shares of Chesapeake, which also kept its 2017 budget nearly unchanged, rose as much as 9 percent to $5.80 on Thursday. Click here to read full stories.

Nov 04 - Japan's beleaguered utilities seek salvation in trading 

Forced into action by falling customers due to market liberalization and a shrinking population, Japan's utilities are ditching old long-term coal and gas supply contracts in favour of more short-term, opportunistic trading. The move represents a sea change for the traditionally risk averse utilities as they seek to cut costs, but will make life harder for liquefied natural gas (LNG) producers who have relied on long-term sales to underwrite costly new projects and expansions. Click here to read full stories.