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    Natural Gas Daily: January 7th, 2021

Summary

Daily digest of the latest natural gas news and LNG news by Natural Gas World.

by: NGW

Posted in:

Complimentary, Covid-19, Daily Digest

Natural Gas Daily: January 7th, 2021

US GAS PRICES LOWEST IN DECADES IN 2020: EIA

Natural gas prices at the benchmark Henry Hub in Louisiana averaged just $2.05/mn BTU in 2020, the US Energy Information Administration (EIA) said, the lowest in decades.

  • Weather-related weakness as the year opened persisted as economic impacts of the Covid-19 pandemic reduced both production and consumption starting in March.

 

WIND DIPS BELOW 7% OF GB POWER MIX

Wind-generated electricity accounted for 6.5% of Great Britain's 44 GW of power supply at time of press, as the cold spell continued. This was even less than coal's 7.8%. Combined-cycle gas turbines contributed just over half (51.9%), nuclear 13.3% and biomass 6.9%. Other sources shown on the Gridwatch website included imports from the continent. The percentages will change over the day depending on the weather conditions. 

  • Grid last issued a wind-related warning in November.

  • The problems of intermittency are expected to grow as more wind generation capacity is added to the grid in the coming years.

 

TOTAL AIRLIFTS STAFF FROM MOZAMBIQUE LNG SITE

Terrorist activity near Total's Mozambique LNG construction site in late 2020 has forced the French company to suspend work in the province of Cabo Delgado and evacuate staff.

  • It is in the government's interests to crush the uprising, which is already over three years old, as soon as possible on economic as well as humanitarian grounds: it is pinning its hopes of emerging from poverty on revenues from exports of natural gas from its vast offshore resource.

 

MCDERMOTT BAGS QATAR FEED CONTRACT

Engineering, procurement and construction firm McDermott has been awarded a contract from Qatargas to deliver front-end engineering and design (Feed) work for Qatar Petroleum's North Field South (NFS) project, it said on January 6. 

  • Qatar is working on expanding its LNG production capacity by undertaking North Field East (NFE) and NFS expansion projects. First gas from the NFE expansion is expected by the end of 2025. The second phase, NFS, will further increase Qatar's LNG production capacity from 110mn mt/yr to 126mn mt/yr. 

 

CME LAUNCHES NEW JAPANESE ELECTRICITY, LNG CONTRACTS

CME Group January 6 said it will launch four new Japanese electricity futures contracts and two new LNG futures contracts for trading on February 8, pending regulatory review. 

  • Japanese power prices have rocketed in the present spell of cold weather. Demand for LNG has pushed the JKM above $14/mn Btu.

 

PETROCHINA'S SHALE GAS OUTPUT IN SICHUAN UP IN 2020

PetroChina’s shale gas output in Sichuan province in 2020 was 11.61bn m3, up 44.5% year/year, its parent company CNPC said.

  • State-run CNPC's domestic oil and gas production in 2020 hit a record of 200mn metric tons of oil equivalent, it said on January 4 in a statement.