Natural Gas Exporters Want Oil-Linked Pricing to Maintain Supply
Bloomberg reported: The debate over how to price natural gas is settled, at least for exporters, and oil-indexing should prevail. Prices have to be linked to crude oil to keep expected revenue predictable, with some $8 trillion of investments in the fuel needed by 2040, according to Yury Sentyurin, the new head of the Gas Exporting Countries Forum, an industry group representing gas sellers. Many consumers are opting for different formulas used by the U.S. and Australia, which are emerging as top exporters. “Consumers should understand the peculiarities which producers face,” Secretary General Sentyurin said in an interview. “Security of investment and supply can only be on the basis of long-term contracts closely connected to oil prices so we could plan further investments into crucial infrastructure.” Continued expansion of supply is needed to meet demand that’s forecast to grow at an average of 1.6 percent per year until 2040, Sentyurin said at GECF headquarters in Doha. GECF members include Russia, Iran, Algeria and Qatar, the world’s largest producer and exporter of liquefied natural gas. Instead of oil, some consumers use tolling to pay for liquefaction and price the gas based on Henry Hub on the Nymex and other For more on this story visit bloomberg.com or click https://bloom.bg/2Io3qbs
Why Are Parts of America Still Reliant on Russian Natural Gas?
MarketWatch reported: A tanker arrived in Boston Harbor carrying natural gas that would keep residents’ homes warm for the rest of the winter. The late-January delivery came from Siberia. Why are some parts of America reliant on Russian natural gas, especially when domestic gas production has surged? In 2016 officials in Massachusetts and New Hampshire blocked financing for the $3 billion Access Northeast Pipeline. For more on this story visit marketwatch.com or click http://on.mktw.net/2GrpuRS