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UK GAS-Prices fall after a week’s gains, higher temperatures

British wholesale gas prices fell on Friday morning after rising all of this week, with temperatures forecast to go up from tomorrow. The within-day contract TRGBNBPWKD was down 2.40 pence at 67.10 pence per therm by 0910 GMT. The weekend contract TRGBNBPWE was 1.50 pence lower at 61.50 p/therm. Prices have been rising this week, so there is some correction today, a gas trader said. Temperatures are forecast to increase tomorrow to an avergae of around 11 degrees over the weekend, before going back towards normal levels next week, Refinitiv ...

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Australia commits $45 million to boost gas supply

The Australian government said on Friday it will commit A$58.6 million ($45.3 million) to boost gas supply, storage and pipeline capacity in its 2021-22 budget, due to be unveiled on May 11. The spending fits with the government’s push for a gas-fired economic recovery from the COVID-19 pandemic slump, aiming to boost gas supply, drive down prices for manufacturers and avert a looming shortfall in the country’s southern states. “The government will not sit back and allow the shortfall to eventuate – the risk to the economy is too great,” ...

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Higher LNG to Britain likely in May and June on NBP premium

Britain would import more LNG relative to its northwest European neighbours in the coming months based on high NBP prices, despite relatively low storage capacity in Britain. The NBP May ’21 contract expired at a premium to both the Dutch TTF and French PEG on 30 April, according to ICIS assessments. ICIS assessed the NBP May ’21 at €23.519/MWh on 30 April, €0.288/MWh above its TTF equivalent and €0.469/MWh above the PEG front month. This made Britain the most attractive destination of the three for LNG cargoes. And monthly assessments ...

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LNG market upheavals push Asian buyers to seek more legal protection in contracts

The price extremes of the Asian LNG market in the past year, due to the pandemic-driven demand destruction of 2020 and winter demand spike of early 2021, created friction between buyers and sellers that are likely to feed into negotiations as more LNG contracts get signed. Buyers in Asia have found themselves unable to hold suppliers accountable beyond limited monetary compensation for non-delivery of LNG cargoes under a contract, especially when energy security is at stake and the gas is critical to keep the lights on. Currently, the seller’s liability ...

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Russia, China lead global small-scale LNG liquefaction capacity additions by 2025, says GlobalData

Russia and China are expected to lead the global small-scale LNG liquefaction capacity additions, together contributing 43% of the total small-scale liquefaction capacity additions between 2021 and 2025, says GlobalData, a leading data and analytics company. GlobalData’s report, Global Small-Scale LNG Liquefaction Capacity and Capital Expenditure Outlook, 2021–2025 – Russia and China Lead Global Capacity Additions’, reveals that Russia is expected to lead globally with a new build small-scale LNG liquefaction capacity addition of 2,840 ktpa (kilo tonnes per annum) by 2025 while expansion projects account for the rest with ...

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Analysts expect US gas storage build to measure 33% below five-year average

US natural gas storage fields likely injected another below-average volume for the week ended April 30 as the deficit to the five-year average looks to widen in the week ahead, providing support to a Henry Hub summer strip pushing above $3/MMBtu. The US Energy Information Administration is expected to report a 51 Bcf injection for the week-ended April 30, according to a survey of S&P Global Platts survey of analysts May 4. Responses to the survey ranged from a 42 to a 66 Bcf injection. The EIA plans to release ...

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US gasoline stock draws likely resume as demand edges higher

US gasoline inventory draws likely resumed in the week ended April 30, an S&P Global Platts survey of analysts showed May 3, amid an uptick in end-user demand. Total US gasoline stocks are expected to have declined 500,000 barrels last week to around 234.6 million barrels, analysts said. The draw would snap four consecutive weekly builds that had pushed inventories to their highest since late February, though would narrow the deficit to the five-year average of US Energy Information Administration data to 2.4% from 2.6% the week prior. The expected ...

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Brazil’s Petrobras to offer natural gas contracts tied to U.S. benchmark

Brazilian state-controlled oil producer Petroleo Brasileiro SA said on Monday it will add the U.S. natural gas pricing benchmark as an option to future sales contracts with distributors. The move comes as Latin America’s largest oil and gas producer tries to stimulate local demand for its rising natural gas production and as the government strives to reduce domestic natural gas prices. Petrobras, as the Rio de Janeiro company is known, will start offering contracts backed by the U.S. Henry Hub reference price, in addition to contracts indexed to the international ...

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India’s jet fuel demand set to be hit by sharp surge in COVID-19 infections

India’s jet fuel demand is expected to succumb to the latest headwinds — the mutant COVID-19 variant — as many states in the country impose lockdowns and countries worldwide ban flights, or restrict movements, to and from the South Asian nation to curb the spread of the variant. “ICRA [Investment Information and Credit Rating Agency] continues to maintain a negative credit outlook on the Indian aviation industry. The outlook reflects ICRA’s view that the financial performance of Indian airlines is likely to remain weak in the near-to-medium term amid weak ...

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Spot Asia LNG prices rally as China moves early on summer demand

The price of spot liquefied natural gas (LNG) for delivery to north Asia has started its traditional summer rally early this year as buyers fret about the potential for supply shortages when the peak demand season arrives. The spot price rose to $8.85 per million British thermal units (mmBtu) in the week to April 30, up from $8.65 the prior week and the highest since Jan. 22. The post northern winter low was $5.60 per mmBtu on Feb. 26, and working on the assumption that prices don’t dip in coming ...

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US working gas storage capacity increases marginally in 2020: EIA

Although total US working gas storage capacity has remained mostly static in the last two years, strong production and less price volatility has reduced the need for investing into additional underground storage. US natural gas’ demonstrated peak storage capacity declined slightly year over year in 2020, while total working gas capacity increased marginally, according to the US Energy Information Administration’s annual storage report. “Working natural gas design capacity increased by 5 Bcf in the South Central region,” the report said. “The most notable increase in the region was the 4.2 ...

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Asia LPG market near contango on weak pre-summer N Asia demand, ample supply

Softening North Asian heating demand ahead of summer and healthy supply to Asia from the US and Middle East in June have flattened the prompt month market structure and could soon move it into contango for the first time in seven months, trade sources said May 3. June/July CP propane swaps structure was indicated at parity May 3, steady to the April 30 value, and narrowing from a $4/mt backwardation April 28, S&P Global Platts data showed. The front month structure has been in backwardation since Oct. 8, after standing ...

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Oil-rich Bakken Shale shows promise of natural gas growth despite fewer rigs

Although oil production in most US shale basins is not expected to reach pre-coronavirus levels until at least late 2023, additional processing and higher gas-to-oil ratios might still lead to natural gas growth in the oil-rich Bakken. Oneok increased its first-quarter natural gas and natural gas liquids volumes processed in the Williston Basin and plans to bring another 200 MMcf/d of processing capacity online before year-end, which will further reduce flaring in North Dakota. Gas volumes processed in the Rocky Mountain region increased 5% while NGL raw feed throughput volumes ...

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LNG customers hold power over producers in rush to quantify GHG: Chevron

Chevron expects global LNG customers to continue pushing producers to tie commercial deals to greenhouse gas emissions control efforts, following a unique offtake agreement it signed with Singapore’s Pavilion Energy earlier this year, a company official said April 28 during the FP Virtual Climate Summit. The carbon intensity initiative, though smaller in scale, is similar to what Cheniere Energy has said it will begin doing next year for each shipment from its two US liquefaction terminals. Gas and LNG producers, especially in North America where new projects face challenges getting ...

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Huge rise in coronavirus cases hit India’s April fuel demand

Indian state refiners’ local fuel sales in April declined due to state-level restrictions aimed at stemming a rampant second wave of coronavirus infections, preliminary data shows. The deadly second wave topped 400,000 new daily cases for the first time on Saturday. Authorities reported 401,993 new cases in the previous 24 hours, the highest daily count globally, after 10 consecutive days over 300,000. Deaths from COVID-19 jumped by 3,523, taking the total toll in India to 211,853. “Overall fuel demand is down by about 7% from pre-covid level of April 2019,” ...

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