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Can anyone explain this? Nat gas explosion
Posted on 6/14/22 at 12:16 pm
Posted on 6/14/22 at 12:16 pm
LINK
So they can't export natural gas for a while, the price goes down? Isn't this traded in futures, won't the price increase as europe goes without?
So they can't export natural gas for a while, the price goes down? Isn't this traded in futures, won't the price increase as europe goes without?
4
Posted on 6/14/22 at 12:46 pm to j1897
The price quoted is for a specific location in the US that feeds various locations. The Europe price has gone up as the LNG was intended for that market. So now the natural gas that won’t be exported via lng is stuck here for a time period. It’s gas so it’s not as easy to store and transport as oil so disruptions like this have huge impacts on local markets.
Posted on 6/14/22 at 2:05 pm to j1897
What C said...I'm actually a market analyst for LNG/LPG. Basically, nat gas in the US is incredibly high because of low stocks, high domestic demand because of the heat and high international demand (namely Europe not Asia currently) because of Europe's tiff with Russia. Natural Gas production is nearly back to where it was pre-Covid and surpassing ATHs quickly with West Texas maxing out pipelines and Haynesville passing up Appalachia.
Freeport sends about 20% of all US LNG. That is completely off the table now and that gas will not be used to fill storage. Which is great for the US and bad for Europe, bringing our domestic prices back down.
But yes Europe's price will increase as they now have fewer capacity to bring in. Freeport is down and Prelude in Australia is still a shite show.
Freeport sends about 20% of all US LNG. That is completely off the table now and that gas will not be used to fill storage. Which is great for the US and bad for Europe, bringing our domestic prices back down.
But yes Europe's price will increase as they now have fewer capacity to bring in. Freeport is down and Prelude in Australia is still a shite show.
Posted on 6/14/22 at 2:23 pm to MadtownTiger
This could be a godsend for the US as energy prices should see a decent drop. I’m talking electric bills, energy intensive products, etc.
As for Europe, this is very bad. Now they have less options for their gas while they’re boycotting Russia’s energy. Expect this could impact war strategy for NATO countries on when they finally tell Ukraine to capitulate & accept Russia’s terms and end the war.
As for Europe, this is very bad. Now they have less options for their gas while they’re boycotting Russia’s energy. Expect this could impact war strategy for NATO countries on when they finally tell Ukraine to capitulate & accept Russia’s terms and end the war.
Posted on 6/14/22 at 2:29 pm to j1897
As a company that uses a shite ton of natural gas to dry rice this is great news. Of course it was less than two dollars last year at this time.
Posted on 6/14/22 at 2:43 pm to j1897
Natural gas is not a global commodity… it’s a regional commodity. This event will raise prices in Europe and lower prices in the US.
It just so happened that at about the same time this event occurred, Russia announced that it’s cutting 40% of the gas in Nordstreim 1.
It just so happened that at about the same time this event occurred, Russia announced that it’s cutting 40% of the gas in Nordstreim 1.
Posted on 6/14/22 at 3:59 pm to TchoupitoulasTiger
Does this help or hurt Tellurian?
Posted on 6/15/22 at 6:42 am to TchoupitoulasTiger
quote:
Natural gas is not a global commodity… it’s a regional commodity.
Bingo. The logistics are simply too difficult for it to ever be global.
Honestly, we’ve probably only just begun to see global commodity balkanization. Oil is on the chopping block, as well as food.
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