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[sarkasm] 15/2/2018 09:48

Saudi Plans To Double Natural Gas Output In 10 Years
By Zainab Calcuttawala - Feb 15, 2018, 3:00 AM CST Natural Gas

Saudi Arabia plans to double its natural gas production over the next ten years, the country’s energy minister told reporters on Wednesday.

“When it comes to natural gas, over the next decade we are going to be roughly doubling our production to 23 billion cubic feet per day and substantially increasing the percentage of natural gas in the Kingdom’s fuel mix, displacing liquids and therefore reducing carbon (emissions),” Khalid Al-Falih said at the eighth annual IEA-IEF-OPEC Symposium on Energy Outlooks occurring in Riyadh.

Natural gas is considered a “green” fuel because burning it releases less carbon dioxide into the atmosphere than coal or oil.

Al-Falih also addressed industry-wide concerns regarding the future of an OPEC-led pact to reduce global oil output by 1.8 million barrels per day through the end of the year.

“Market volatility is a common concern for producers and consumers, and the Kingdom is committed to mitigating this volatility and moderating its negative impacts by responsibly meeting its pledges” under the deal. “I am confident that our high degree of cooperation and coordination will continue and bring the desired results,” Falih told the industry conference, with an audience of Russian Energy Minister Alexander Novak and OPEC Secretary General Mohammad Barkindo.

According to OPEC’s latest production figures released earlier this week, Saudi Arabia lifted its January production by 23,300 bpd to 9.977 million bpd—but still below its 10.058-million-bpd quota, over complying once again.

The market volatility and the plunge in oil prices—from over $70 to $62 a barrel Brent—in just two weeks has raised concerns that oil is on another downturn, and Saudi Arabia returns to reiterate its pledge that it will do “whatever it takes” to bring global inventories back to balance.

By Zainab Calcuttawala for Oilprice.com

[florenceorbis] 11/2/2018 19:40

11 February 2018 - 18H53
Cyprus, Turkey spar after warships block gas drilling ship

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© AFP/File | Italy's energy giant ENI told the Cyprus News Agency its vessel was ordered to stop by Turkish ships as it sailed to begin explorations in block 3 of Cyprus's exclusive economic zone
NICOSIA (AFP) -

Cyprus on Sunday insisted Turkey had breached "international law" after Ankara's warships blocked an Italian drilling ship on course to explore for gas in the island's politically sensitive waters.

Italy's energy giant ENI told the Cyprus News Agency its vessel was ordered to stop by Turkish ships Friday over "military activities in the destination area" as it sailed to begin explorations in block 3 of Cyprus's exclusive economic zone.

Turkey and the Greek Cypriot-majority republic have sparred over resources in the eastern Mediterranean, with Ankara pushing the claim of the unrecognised statelet it backs on the north of the divided island.
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"We are keeping calm in order to avoid any crisis and taking all diplomatic steps necessary so that finally the Republic of Cyprus' sovereign rights can be respected," President Nicos Anastasiades told reporters Sunday.

"We are handling the situation by trying to avoid anything that could worsen the situation without ignoring the fact that Turkey's actions are in breach of international law," he added.

However, Turkey's foreign ministry lashed out at Cyprus over the "unilateral hydrocarbon-related activities" by the European Union's most easterly member.

"It does so in disregard of the inalienable rights on natural resources of the Turkish Cypriot people, who are the co-owners of the Island," a statement said.

"This unconstructive Greek Cypriot attitude also constitutes a major obstacle to the settlement of the Cyprus issue."

The island has been divided since 1974 when Turkish troops invaded and occupied its northern third in response to a coup sponsored by the military junta then ruling Greece.

Cyprus announced on Thursday that exploratory drilling by Italy's ENI and France's Total had found extensive gas reserves elsewhere off the island in a major breakthrough in its hunt for resources.

Cyprus has signed deals with a range of firms for exploratory drilling, with US giant ExxonMobil also planning two drills in the second half of 2018.

The dispute over resources in the Mediterranean is another complicating factor in efforts to reunify the island after negotiations on the 44-year feud collapsed in acrimony last year.

Turkey and Cyprus are not the only countries at odds over resources in the eastern Mediterranean, with Israel and Lebanon also feuding over competing claims.

[grupo] 06/2/2018 10:02

TIDMTTA



Total (Paris:FP) (LSE:TTA) (NYSE:TOT):



Total Marine Fuels Global Solutions (TMFGS) and Mitsui O.S.K. Lines, Ltd. (MOL) have signed a long-term charter contract for a large LNG bunker vessel of 18,600 m³, to be delivered in 2020. She will operate in Northern Europe and will be the first ever capable of supplying large quantities of LNG in one single bunkering operation.



With this vessel, TMFGS intends to serve the emerging marine LNG market for the container ships segment, including those sailing on the Europe-Asia trade. She will be used in particular to supply CMA CGM's new build LNG mega container ships, following the 10 years contract of 300 kt per annum signed with TMFGS in December 2017.



This bunker vessel will be built by Hudong-Zhonghua Shipbuilding in China and fitted with the Mark III membrane containment system provided by the French company GTT. Highly manoeuvrable by design, with a length of about 135 meters, she will be able to operate safely in the considered harbours and terminals. She will meet the highest environmental standards through the use of LNG as fuel and a complete reliquefaction of the boil-off gas.



The newbuild vessel will be managed by MOL (Europe Africa) Ltd, a UK subsidiary of MOL.



This agreement is a significant milestone in the cooperation between MOL and Total Marine Fuels Global Solutions, with developments in both conventional fuels and LNG ahead of 2020 IMO sulphur regulations. Beyond their historical commercial relationship, the two companies have also signed a Memorandum of Understanding to combine their expertise in the development of marine LNG infrastructures and serve MOL future LNG needs.



Olivier Jouny, Managing Director of TMFGS, commented on the decision: "We are very proud to partner with MOL for our first LNG bunker vessel. Their track record in LNG shipping already includes major achievements with Total. Combined with our strong historical activity in the bunker industry and our global footprint in LNG, this pioneer agreement offers a major contribution to the development of LNG as a marine fuel and illustrates Total's strong commitment towards the use of this new fuel.



Takeshi Hashimoto, MOL Senior Managing Executive Officer, Energy Transport Business Unit, said: "We are delighted to be selected as a partner of Total Marine Fuels Global Solutions for their first LNG bunker vessel.This is a key milestone for MOL and also a stepping stone to further enhancement of the two companies' relationship of not only in conventional fuels but also LNG as a marine fuel.We are confident that our joint technical and operational expertise will contribute positively to this new business development. "



About Total Marine Fuels Global Solutions



Total Marine Fuels Global Solutions is Total's dedicated business unit in charge of worldwide bunkering activities. Total Marine Fuels Global Solutions is the single point of contact for a full spectrum of solutions with innovative and efficient bunkering services. www.marinefuels.total.com .



About Total



Total is a global integrated energy producer and provider, a leading international oil and gas company, a major player in low-carbon energies. Our 98,000 employees are committed to better energy that is safer, cleaner, more efficient, more innovative and accessible to as many people as possible. As a responsible corporate citizen, we focus on ensuring that our operations in more than 130 countries worldwide consistently deliver economic, social and environmental benefits.



About Mitsui O.S.K. Lines



Mitsui O.S.K. Lines, Ltd. (MOL), as a multi-modal transport group, meets the needs of the era in a wide variety of fields including dry bulkers such as iron ore carriers, coal carriers, and woodchip carriers, crude oil tankers, LNG carriers and offshore business, methanol carrier, chemical tankers, product tankers, car carriers, ferries, RORO ships, logistics, and containerships that carry a broad range of products.



MOL's activities are truly borderless, based on the operation of one of the world's largest merchant fleets, backed by expertise and technology developed throughout our over 130-year history. MOL supports the growth of the world economy with the entire globe as our stage, while continually evolving into an excellent and resilient corporate group.



* * * * *



Total contacts



Media Relations: [phone] | [e-mail] | @TotalPress



Investor Relations: [phone] | [e-mail]



MOL contacts



Mitsui O.S.K. Lines, Ltd.



Public Relations Office



Telephone : [phone]



Facsimile : [phone]



Cautionary note



This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which TOTAL S.A. directly or indirectly owns investments are separate legal entities. TOTAL S.A. has no liability for their acts or omissions. In this document, the terms "Total" and "Total Group" are sometimes used for convenience where general references are made to TOTAL S.A. and/or its subsidiaries. Likewise, the words "we", "us" and "our" may also be used to refer to subsidiaries in general or to those who work for them.



This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise




View source version on businesswire.com:


This information is provided by Business Wire



(END) Dow Jones Newswires

February 06, 2018 04:33 ET (09:33 GMT)

[grupo] 04/2/2018 12:05

Major Cypriot offshore gas field discovered - report
Leviathan gas field Photo: Noble Energy
4 Feb, 2018 13:45
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The Calypso field, containing an estimated 170-230 BCM, will make it even more difficult for the Leviathan partners to sign export deals.

The Cypriot media has reported the discovery of a major natural gas field in Cypriot economic waters, 75 kilometers off the island's southern coast. The reservoir reportedly contains 170-230 BMC of gas, 70% as much as the Tamar reservoir in Israel's territorial waters. The reservoir, which is located in bloc 6 and is called Calypso, will be developed by a European consortium composed of Italian company ENI and French company Total SA.
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According to the reports, the drilling results confirmed "sufficient and encouraging signs" of a natural gas field. Cypriot Energy Minister Yiorgos Lakkotrypis said, "The findings are encouraging, but we need more time for analysis in order to provide final confirmation that there is a gas discovery. Meanwhile, I am unwilling to talk about quantities or any other matter." The final results of the drilling are expected to be published within a few days. Lakkotrypis added that the geologic structure of the sea bottom at Calypso was similar to that of Egypt's Zohr discovery.

According to Israeli energy sector sources, although the reports of the discovery were published only two days ago, rumors leaked as long as two weeks ago, and "The reports should be taken with a grain of salt, because Cyprus is currently in the middle of an election campaign."

If Calypso proves to be a real discovery, it is not good news for Israel. At a time when there are still not enough contracts to develop the second stage of Leviathan, and it is unclear when export contracts will be signed, Cyprus is likely to become one of the main players in the natural gas market.

"Cyprus will be able to export easily to Egypt's liquefaction facility at Damietta or the local market in Egypt, and can do so before Israel begins exporting there," a source with energy expertise told "Globes." In Israel, developing reservoirs and gas export plans take many years to implement. For example, the Leviathan reservoir, which was discovered in 2010, will begin supplying gas only a decade later, in 2020. ENI, on the other hand, made history by developing and connecting Egypt's huge Zohr reservoir in two and a half years. ENI is also a partner in the Damietta liquefaction facility in Egypt, which is likely to make it even easier for Cyprus to export gas to Egypt.

ENI's partner in Calypso, Total, is also one of the world's largest oil and gas exploration companies. The two partners are extremely large companies with huge equities, and will not have to raise money on the stock exchange in order to finance development, a factor that will significantly shorten the development processes.

Is Israel, which plans to begin exporting its gas, in need of rescue? The answer is yes. If the reports in Cyprus turn out to be true, Cyprus can become a significant player in the natural gas sector, and can offer more attractive prices than Israel, because Tamar currently sells gas at a relatively high price of $5.40 per BTU, a fact that is causing public controversy. It is therefore unlikely that that the price for exports will be less than the price for the domestic market, because that would be liable to generate public anger.

Published by Globes [online], Israel Business News - www.globes-online.com - on February 4, 2018

[ariane] 24/1/2018 09:00

Natural gas soars, with the leap setting off a trading halt
By Barbara Kollmeyer

Published: Jan 24, 2018 3:46 a.m. ET






Analyst sees ‘big squeeze on a changing weather forecast’ for natural gas, while oil prices largely hold steady
Getty Images
A powerful winter storm hit Massachusetts in early January.

Natural gas prices soared on Wednesday, getting a lift from forecasts that call for frigid temperatures again in parts of the U.S., while oil prices largely held steady.

February natural gas NGG18, +4.33% was up 4%, or 14 cents, to $3.545 per million British thermal units. The commodity rallied 6.8% on Tuesday to $3.444 per million British thermal units, the highest level since Dec. 30, 2016. It then continued to soar in electronic trading Tuesday evening, with volatile action triggering a circuit breaker at one point.

Phil Flynn, senior market analyst at Price Futures Group, described the action Tuesday as a “big squeeze on a changing weather forecast, as well as expectations for another big drawdown in supply.” The Energy Information Administration will update on natural gas and oil stockpiles later on Wednesday.

A blast of cold weather across parts of the U.S. has resulted in unusually strong storage withdrawals for natural gas, and this has brought storage levels to the low end of a five-year range, according to analysts.

Meanwhile, oil prices were steady to weaker after the American Petroleum Institute on Tuesday reported an unexpected rise in crude supplies.

March West Texas Intermediate crude CLH8, +0.19% was flat at $64.47, after rising 1.4% to settle at $64.47 a barrel on Tuesday, the highest settlement since Dec. 5, 2014. Brent for March LCOH8, -0.14% was off 13 cents to $69.83 a barrel, after reaching the highest settlement since Jan. 15 on Tuesday, climbing 1.4% to end at $69.96 a barrel.

The oil gains came amid expectations for a ninth-straight weekly fall in U.S. crude supplies, along with concerns about production risks in Nigeria. EIA data is due later on Wednesday, with analysts polled by S&P Global Platts forecasting a decline of 1.6 million barrels for crude inventories. However, Tuesday’s API data showed a surprise jump in supplies of 4.8 million barrels for the week ending Jan. 19, according to sources.

In Nigeria, a militant group in the Niger Delta has reportedly threatened to resume bombing on oil facilities in the region.

Among other energy contracts, February gasoline RBG8, -0.23% slipped 0.1% to $1.906 a gallon, while February heating oil HOG8, +0.08% was flat at to $2.09 a gallon.

Myra Picache contributed to this report.

[sarkasm] 17/1/2018 19:43

World’s first floating LNG storage and regasification barge completed

Published by Will Owen, Editorial Assistant
LNG Industry, Wednesday, 17 January 2018 16:26

Black & Veatch has delivered the regasification system for the world’s first barge-based FLNG regasification and storage unit. The company partnered with Wison Offshore & Marine Ltd. to provide engineering and procurement for the topside regasification unit.

The barge-based floating storage and regasification unit (FSRU) was delivered in December from Wison’s shipyard in Nantong, China, for global oil and gas shipper Exmar.

“This is the first FSRU barge to complete construction, and enables Exmar to meet rising global demand for flexible, mid-sized LNG import solutions,” said Bob Germinder, Senior Vice President and Managing Director of Floating Oil & Gas Solutions, Black & Veatch.

Black & Veatch designed the topside units for the FSRU, including boil-off gas handling, LNG vapourisation and natural gas metering, procured all topside equipment and instruments and provided support during the construction phase. The FSRU contains 25 000 m3 of LNG storage and uses Shell & Tube vapourisers to provide a maximum sendout rate of 600 million ft3/d. Once the FSRU is mobilised, Black & Veatch will support Exmar to complete the final commissioning and start-up of the unit.

[la forge] 16/1/2018 08:21

Shell Takes a Last Exit From Mideast Oil -- WSJ
16/01/2018 8:02am
Dow Jones News

Shell A (LSE:RDSA)
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Today : Tuesday 16 January 2018
Click Here for more Shell A Charts.

Energy company leaves last Iraqi site but keeps a presence in natural-gas industry

By Sarah Kent and Benoit Faucon

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (January 16, 2018).

LONDON -- Royal Dutch Shell PLC is giving up on its last oil fields in Iraq, leaving the world's second-biggest oil company with a dwindling footprint in the Middle East -- a region it helped build into a petroleum powerhouse.

Shell said Monday it is selling for an undisclosed amount a stake in the West Qurna 1 oil field in Iraq to Japan's Itochu Corp., the latest step in a gradual retreat from the region. The company is also expected to give up its holding in Iraq's Majnoon oil field later this year, though it will retain its natural-gas interests in the country.

Shell's departure from Iraqi oil assets marks one of the final chapters in a slow pullback from the Middle East's vast fields of petroleum. Shell pumped as much as 450,000 barrels of oil in 2003 in the Middle East, and over the past 15 years had operations that produced thousands of barrels of oil daily across six countries in the region. Once it officially leaves Iraq later this year, Shell will have oil assets in Oman that produce about 220,000 barrels a day.

Shell is keeping its considerable natural-gas interests in Middle Eastern countries, including Qatar, Oman, Egypt and Iraq, a strategy it has followed after its $50 billion deal to buy gas giant BG Group PLC in 2016. The deal also brought Shell big business in Brazil's offshore oil fields, where it has centered its oil-production strategy.

"We have definitely not turned our back on the region, far from it," said Shell Chief Executive Ben van Beurden in November, referring to the Middle East. But he added that projects such as Majnoon "are increasingly less strategic in our portfolio."

The move reflects the waning attraction of the Middle East's once-prized oil reserves, as companies find that the free flow of crude in the region often comes at a political or financial cost. U.S. oil giants Exxon Mobil Corp. and Chevron Corp. have ratcheted up their focus on shale interests on their home turf in recent years, though both retain interests in Iraq.

In addition to the escalating security risks following the Arab Spring, oil contracts offered by Middle Eastern governments often don't have profitable terms, analysts say.

Iraq has some of the toughest terms in the business. Foreign companies are paid fixed fees per barrel of oil pumped, terms that many in the industry say is low.

"The terms are too tight for Shell," said Robin Mills, a former Shell executive involved in the Middle East who is now chief executive of Dubai-based Qamar Energy. For the British-Dutch oil giant, "it isn't worth the trouble."

Shell declined to comment further on its footprint in the Middle East beyond confirming its exit from the West Qurna oil field. The company said it is still working to gain necessary approvals for the sale from the Iraqi government.

Iraqi oil officials didn't respond to requests for comment.

In the past year, Shell has had to contend with delays in Iraq including tardy government payments for pipelines and water-treatment facilities, according to Iraqi officials and contractors.

Much of the Middle East's oil business is off limits to foreign companies, but a handful of countries including Iraq still offer the promise of barrels at relatively low prices. But the crash in oil prices over the last three years has helped lower the costs of production elsewhere in the world, including the U.S., where Shell has earmarked its shale interests as a catalyst for growth.

Shell also has taken a number of steps in recent years that have reduced its presence in the region, passed on opportunities and been forced out by Western sanctions.

Shell walked away from a bid to renew its rights to a massive oil concession in the United Arab Emirates -- a privilege that BP PLC and Total SA paid about $2 billion to keep but both Shell and Exxon didn't. The company stopped producing in both Syria and Iran after 2010 because of sanctions related to the Syrian civil war and Tehran's nuclear program, respectively.

Shell has shown interest in returning to Iran, but it hasn't followed Total in signing a deal to invest in the country. The sanctions risk remains high, and Shell has struggled to find suitable, mainstream banks to enable its Iranian investments, people familiar with the matter say.

Write to Sarah Kent at [e-mail] and Benoit Faucon at [e-mail]



(END) Dow Jones Newswires

January 16, 2018 02:47 ET (07:47 GMT)

[waldron] 15/1/2018 18:39

Morocco Prepares $4.6B Gas Project Tender
By Irina Slav - Jan 15, 2018, 12:00 PM CST Morocco Prepares $4.6B Gas Project Tender

Morocco is preparing to launch a tender for a natural gas project worth US$4.6 billion, the country’s Energy Minister Aziz Rabbah said in a Bloomberg interview. The gas will be used for power generation, he added.

The project will involve the construction of a gas processing plant, Rabbah also said, noting that the government has already selected the financial and technical consultants for the undertaking.

Morocco has proved reserves of some 1.44 billion cubic meters of natural gas, according to the CIA World Factbook, with production at less than 100 million cu m as of 2015. There are hopes, however, that it could become an international player on the gas market. One UK company is so optimistic about Morocco’s natural gas production potential that it last year even started divesting from other locations to focus its attention on Morocco.

Sound Energy said last October that it would focus exclusively on Morocco, where it has acreage with reserves estimated at 17 trillion cu ft of gas. The flagship field in the area is Tendrara, which is estimated to contain about 1 trillion cu ft of gas. Sound Energy’s partner in the Moroccan venture is Schlumberger.

Morocco is also a potential client of U.S. liquefied natural gas. At the end of last year, media slammed EPA chief Scott Pruitt for traveling to the North African country to promote U.S. LNG.

With no significant crude oil reserves, Morocco is ahead of many more developed countries in terms of renewable energy. It is home to what will be the world’s largest solar power installation once completed: the Noor plant in the Sahara Desert. The plant has two phases already in operation, with a third on the way.

The combined capacity of Noor’s three phases will be north of 500 MW and the last one should be completed by the end of this year.

By Irina Slav for Oilprice.com

[la forge] 15/1/2018 15:30

Total's average Q4 natural gas price realization at two-year high of $4.23/MMBtu

London (Platts)--15 Jan 2018 930 am EST/1430 GMT

France's Total reported Monday an average global realized gas price of $4.23/MMBtu in the fourth quarter of 2017, a two-year high, as cold weather in the US, Europe and northeast Asia in the latter part of the quarter triggered increased demand and higher wholesale prices.


Gas prices boosted by cold weather, increased demand
TTF averaged $6.60/MMBtu in Q4, NBP $6.84/MMBtu
Q2, 2016 marked 14-year low point for French major


Total's Q4 realized price was a 9% increase on the same quarter of 2016 and a 4% rise compared with the Q3, 2017 average price.

The company's average realized price was last higher in the fourth quarter of 2015 when it was $4.45/MMBtu, before gas prices slumped to multi-year lows on slow demand and well supplied markets, especially in the US and Europe.

The second quarter of 2016 still marks the 14-year low point for the French major's realized gas price at $3.43/MMBtu -- it was previously lower only in Q3, 2003 when the price dropped to just $3.04/MMBtu.

Article continues below...

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Just under 40% of Total's gas production is concentrated in Europe and the Caspian region, which together accounted for 2.56 Bcf/d of the company's 6.43 Bcf/d output in Q3.

Gas prices in Europe were up strongly in Q4 compared with Q3 on continued strong demand and some supply tightness.

According to S&P Global Platts assessments, the average Dutch TTF day-ahead price in Q4 was $6.60/MMBtu and the equivalent UK NBP price was $6.84/MMBtu.

That compares with $5.54/MMBtu on the TTF in Q3, while the equivalent UK NBP price was $5.41/MMBtu.

Total is less exposed than some of its European peers to the low US gas prices, with production in the Americas making up just one sixth of its total gas output.

Total's realized gas prices ($/MMBtu)

Q4 2017 4.23
Q3 2017 4.05
Q2 2017 3.93
Q1 2017 4.10
Q4 2016 3.89
Q3 2016 3.45
Q2 2016 3.43
Q1 2016 3.46
Q4 2015 4.45
Q3 2015 4.47
Q2 2015 4.67
Q1 2015 5.38
Q4 2014 6.29
Q3 2014 6.40
Q2 2014 6.52
Q1 2014 7.06

--Stuart Elliott, [e-mail]
--Edited by Jeremy Lovell, [e-mail]

[grupo guitarlumber] 13/1/2018 21:19

MENU

Five things that could blow Europe gas market rally off track
January 13 2018 10:31 PM
Business Eco./Bus. News
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Bloomberg/London

Natural gas use is on a tear in Europe, buoyed by a recovering economy and demand for cheaper and cleaner alternatives to coal. That’s poised to carry over in 2018, helping producers from Russia’s Gazprom to traders such as Trafigura Group and RWE AG.
Here’s five questions market participants are asking to gauge whether the rally will continue:


Is demand really back?
Gas consumption in the European Union surged 14% in the three months through September, the seventh quarter of growth. That was against a backdrop of double-digit gains in the price of coal and carbon-emission permits last year, which made it more expensive for utilities to burn the dirtiest fossil fuel.
“Slowly, the power sector is coming back for gas demand, and there’s potential for more of that this year,” said Rolf Schlausch, an analyst at Wingas GmbH in Kassel, Germany.
Even so, hurdles to repeated strength in demand still remain, such as warmer weather, slowing economic growth and weaker coal and carbon prices. Consumption gains may be as low as 1 to 2% in 2018, according to estimates from Deutsche Bank AG and Sanford C. Bernstein Ltd.


Will LNG imports start to increase?
More liquefied natural gas probably will flow into Europe to replace lower production from fields within the region. But how much arrives depends on the thirst for energy in Asia - especially China - where the nation’s fight against smog has focused on substituting gas for coal.
Asian nations have been willing to pay more for LNG than what deliveries to the UK can command. That premium is near its highest level since October 2014 because of China’s skyrocketing imports. Statoil ASA and Gazprom expect that dynamic to continue, suggesting little room for the sort of big rise in LNG imports that might ease prices.
Still, the share of LNG of Europe’s gas market is expanding. It may take a 13% share this year, about the same as it was in 2012 before flows from pipelines won out, Bernstein forecasts show. A long-anticipated wave of LNG may begin to hit next year, when the securities firm expects the super-chilled fuel to have almost 16% of the market.


Will Russia and Norway keep up their record shipments?
Russia and Norway are Europe’s biggest suppliers and want to keep this year’s shipments near the banner levels of 2017. Gazprom and Statoil expect pipeline flows to remain robust, since most of the world’s new LNG volumes will go mainly to Asia.
“New LNG project start ups will facilitate more LNG imports in Europe, but with domestic production going down, Russian exports will remain sustained,” said Massimo Di-Odoardo, an analyst at Wood Mackenzie Ltd “We will need to wait until 2019 before increased LNG imports will test Russian appetite to compete for market share in Europe.”


What happens to Europe’s biggest gas field?
Flows from the Groningen field in the Netherlands has fallen gradually in a bid to stop earthquakes triggered by extracting the fuel. While the current annual production cap of 21.6bn cubic meters remains, the Council of State, the nation’s highest administrative court, in November gave the government a year to come up with a new plan.
More quakes could spur more drastic measures. On January 8, Groningen was hit by the region’s biggest tremor in more than five years. Two days later, field operator Nederlandse Aardolie Maatschappij BV, a venture between Royal Dutch Shell Plc and Exxon Mobil Corp, proposed a “substantial reduction” in output. The Dutch government must endorse the plan. Any decision will impact the outlook for the continent’s gas supply.


How is the UK coping
without Rough?
Britain’s biggest storage facility, the Rough field, is approaching the end of its useful life. That leaves traders in the UK with one less option for stockpiling fuel in the summer to meet winter demand.
To get around this, traders can export the fuel from Britain to storage sites in mainland Europe in the summer in hopes of bringing it back when the chilly season arrives. They can benefit from more volatile prices and the difference between the cost of the commodity in different seasons. There’s also smaller storage sites in Britain that are suddenly more able to generate business.
Supplies from the Netherlands and Belgium through pipelines are already at a record high since the start of the year.

[maywillow] 11/1/2018 17:43

Natural Gas Price Jumps on Record Storage Withdrawal

By Paul Ausick January 11, 2018 11:25 am EST
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The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks decreased by 359 billion cubic feet for the week ending January 5. This is the largest one-week storage withdrawal on record.

Analysts were expecting a storage withdrawal of around 318 billion cubic feet. The five-year average for the week is a withdrawal of 170 billion cubic feet, and last year’s storage withdrawal for the week totaled 136 billion cubic feet. Natural gas inventories fell by 206 billion cubic feet in the week ending December 29.

Natural gas futures for February delivery traded up about 3.8% in advance of the EIA’s report, at around $3.02 per million BTUs, and moved up to around $3.04 shortly after the report was released.

The frigid conditions of the past two weeks in the northeast are finally giving way to more moderate temperatures, until early next week when the heavily populated region is expected once again to see colder weather. Overall demand for the next week is forecast to be in the “high” range.

Total U.S. stockpiles fell week over week to 13% below last year’s level and are now also 12% below the five-year average.

The EIA reported that U.S. working stocks of natural gas totaled about 2.767 trillion cubic feet, around 382 billion cubic feet below the five-year average of 3.149 trillion cubic feet and 415 billion cubic feet below last year’s total for the same period. Working gas in storage totaled 3.182 trillion cubic feet for the same period a year ago.

Here’s how share prices of the largest U.S. natural gas producers reacted to today’s report:

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, traded up about 1.1%, at $87.00 in a 52-week range of $76.05 to $87.41.
Chesapeake Energy Corp. (NYSE: CHK) traded up about 3.6%, at $4.15 in a 52-week range of $3.41 to $7.29.
EOG Resources Inc. (NYSE: EOG) traded up about 2.1% to $114.40. The 52-week range is $81.99 to $114.86, a new high posted this morning.

In addition, the United States Natural Gas ETF (NYSEARCA: UNG) traded up about 4.1%, at $23.93 in a 52-week range of $20.40 to $35.00.