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Asian spot LNG prices jump to 20-month high on firm demand

Asian spot prices for liquefied natural gas (LNG) jumped to their highest in more than 20 months this week on robust buying appetite ahead of a colder-than-expected winter, trade sources said. The average LNG price for December delivery into northeast Asia LNG-AS was estimated at about $6.90 per million British thermal units (mmBtu), jumping $1.10 from the previous week. Prices were boosted by several requirements from buyers in Japan, China and South Korea. China’s Unipec sought 10 cargoes for delivery in winter, while Shenzhen Energy sought a cargo for December ...

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Tightening gas-market fundamentals lift Henry Hub 2021 forwards to 4-year high

The Henry Hub 2021 forward curve is trading at its highest in more than four years as supply-demand fundamentals in the US natural gas market continue to tighten. On Oct. 22, the calendar-year curve settled at an average $3.09/MMBtu, down just 4 cents from the prior day’s record settlement, S&P Global Platts’ most recently published M2MS data shows. While the 2021 curve has gotten a lift from winter-season prices trading in the $3.30s to $3.40s/MMBtu, the forward market has also become increasingly bullish on the shoulder-season and summer contracts. For ...

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India’s refinery processing limps to six-month peak

Crude oil processed by Indian refiners hit the highest in six months in September, in another sign that demand for fuel is recovering from the blow to economic activity and transportation from coronavirus restrictions. Crude oil throughput in September rose 13.4% from the previous month to 4.33 million barrels per day (17.71 million tonnes). This was the highest since the onset of the country’s coronavirus restrictions in March, when refiners processed 5.01 million bpd of crude oil. Fuel demand also rose for the first time since June last month, data ...

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UAE’s Dana Gas to sell most of Egypt assets; book Q3 impairment

The UAE’s publicly listed Dana Gas has agreed to sell the majority of its Egyptian assets to a private exploration and production operator IPR Wastani Petroleum for up to $236 million in a bid to focus on its operations in Iraq’s semi-autonomous Kurdish region. Dana Gas, which started talks to divest the assets in Q2 of 2019, is selling its 100% working interests in the El Manzala, West El Manzala, West El Qantara and North El Salhiya onshore concessions and associated development leases, it said in a statement Oct. 25. ...

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IEnova expects Mexican export permit for Costa Azul LNG this year

Infraestructura Energética Nova SAB de CV (IEnova) still expects to get an export permit from Mexico soon that will allow it to make a final investment decision (FID) this year to build its Costa Azul liquefied natural gas (LNG) export plant. IEnova, a unit of U.S. energy company Sempra Energy, has been waiting for that 20-year export permit all year. It has been held up in part by the coronavirus. “We continue to work closely with the federal government to obtain the export permit and … have final investment decision ...

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Iraq is in talks with France’s Total to invest in two gas projects

Iraq is in talks with France’s Total to invest in two gas projects, the country’s oil minister said Oct. 24, as OPEC’s second-largest producer seeks to boost natural gas production to lower dependence on electricity and gas imports from Iran. Talks revolve around investments in a gas project west of Baghdad and another in the southern city of Basra, Ihsan Ismaael said in an oil ministry statement. He didn’t disclose further details. Total wasn’t immediately available outside normal business hours. Currently Total has a 22.5% interest in the Halfaya oil ...

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FEATURE: Turkey’s rising Sakarya reserves could shake up regional gas market

The announcement on Oct. 17 that Ankara was increasing the estimate of reserves in its newly discovered Black Sea Sakarya gas field to 405 Bcm from 320 Bcm should go some way in ending questions about the field’s viability. If accurate, the estimated reserves promise both to make a sizable dent in Turkey’s existing gas imports and have a knock-on effect beyond its borders. Sakarya’s development would certainly reduce the potential Turkish market for gas from existing pipeline suppliers Russia, Iran and Azerbaijan, and potential suppliers like Iraqi Kurdistan and ...

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UK GAS-Prices rise on higher consumption, carbon prices

British wholesale gas prices rose on Friday morning due to increased consumption and higher carbon prices. * The weekend contract was 0.75 pence higher at 41.75 pence per therm by 0835 GMT. * The November contract was 0.95 euro higher at 44.20 pence per therm. * Within-day and day-ahead local distribution zone consumption is higher than the day before. Some of the upside in prices might be offset by increased liquefied natural gas send-out, however, Refinitiv gas analysts said. * Flows through the Langeled pipeline from Norway are at 72 ...

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US working natural gas volumes in underground storage rise by 49 Bcf: EIA

US natural gas storage volumes rose by 2 Bcf less than an S&P Global Platts survey of analysts anticipated, but once again much less than the five-year average as the Henry Hub prompt month price has gained 50 cents since the beginning of October. Storage inventories increased by 49 Bcf to 3.926 Tcf for the week-ended Oct. 16 the US Energy Information Administration reported Oct. 22. The injection was less than an S&P Global Platts survey of analysts calling for a 51-Bcf build. The injection measured much less than half ...

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Tougher emissions target could spur Japan refiners’ shift to clean energy

Japanese oil refiners may accelerate efforts to make cleaner fuels such as hydrogen if the government sets a more ambitious goal to achieve zero emissions by 2050, the head of the Petroleum Association of Japan (PAJ) said on Thursday. “If the government upgrades its 2050 carbon emission goal to zero from an 80% reduction now, refiners may speed up their efforts to make cleaner energy, using more renewable energy and hydrogen,” PAJ President Tsutomu Sugimori told a news conference. The Japanese government will pledge next week to reduce greenhouse gas ...

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Refiner Valero posts better-than-expected results, raises renewables bet

U.S. refiner Valero Energy Corp VLO.N posted better-than-expected third-quarter results on Thursday as fuel demand recovered after a sharp cut earlier in the year due to the COVID-19 pandemic that hurt travel. The company said refining throughput, or the amount of crude it processed, averaged 2.5 million barrels per day (bpd), an improvement of 200,000 bpd from the prior quarter as demand for gasoline, diesel and jet fuel recovered in step with global economies opening up. Valero slightly lowered its investment budget for the year, but raised its bet on ...

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ANALYSIS: US gasoline stocks climb as coronavirus-hit demand tests four-month lows

US gasoline inventories showed a surprise build in the week ended Oct. 16 as demand tested four-month lows, US Energy Information Administration data showed Oct. 21. Total US gasoline stocks climbed 1.9 million barrels last week to 227.02 million barrels in the week ended Oct. 16, according to the EIA, putting inventories 1.6% above the five-year average and eliminating a deficit that had persisted since late September. Total refined product supplied, EIA’s proxy for demand, slipped 1.36 million b/d to 18.11 million b/d, driven by lowered demand across all product ...

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China CNOOC says to raise gas’ share to half of output by 2035

China’s national offshore oil and gas producer CNOOC Ltd 0883.HK said on Thursday it aims to raise the share of natural gas to make up half of its total output by 2035 to contribute to a national carbon neutral target by 2060. CNOOC will accelerate natural gas exploration and production both in China and overseas, and also expand its offshore wind power business as two key paths to cut greenhouse gas emissions, Xie Weizhi, chief financial officer told reporters. Currently gas accounts for 21% of its production portfolio, Xie said. ...

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UK GAS-Prices rise as cooler weather raises demand

British wholesale gas prices rose on Thursday morning as cooler weather forecasts pointed to increased demand. * The day-ahead contract was 0.25 pence higher at 40.50 pence per therm by 0838 GMT. * The within-day contract was up by 0.65 pence at 40.50 p/therm. * The UK gas system was over-supplied by 6.8 million cubic metres (mcm), with demand forecast at 209.5 mcm, around 30 mcm below the seasonal norm, National Grid data showed. * Local distribution zone consumption is forecast 12 mcm higher on Friday from Thursday as average ...

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Analysis: Australia’s LNG regas projects face scrutiny amid domestic gas policy changes

Australia’s LNG regasification projects are facing scrutiny after a drilling moratorium in the state of Victoria was lifted earlier this year, and with more acreage recently opened up for exploration by the federal government to boost domestic energy security. The easing of upstream restrictions has made the race for LNG receiving terminals more competitive in South Australia and the eastern states of Victoria, Queensland and New South Wales, and not all the projects will make it to the finish line. But experts said there is still a strong case for ...

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