Serious Energy Times in the U.K.

Serious Energy Times in the U.K.

Who can forget the Great Toilet Paper Shortage of 2020 when panic-buying shoppers stacked baskets sky high with two-ply giant rolls? The same scenario is now at play in Asia. Only this time the demand is for LNG—and this part of the world is in a buying frenzy to secure every possible molecule before winter. With Asia consuming more than half of global supplies, the competition is on for cargoes and Europe has found itself on the short end of the receiving stick. Reese Energy Consulting today is following the energy crisis unfolding in Europe and particularly in the U.K., where wholesale natural gas prices this year have more than tripled yet remain less than the cost of importing LNG when battling for high-priced supplies and adding in the cost of freight. The October gas price at Europe’s Dutch TTF hub traded Tuesday at $86.9 per Mwh. Factor in a global supply shortfall, fewer vessels bound for Europe, waning gas production from the U.K.’s largest single source, limited pipeline imports, and suppliers on the brink of insolvency, and one has all the ingredients for some rough months ahead.

What do you think? Learn more about REC and our natural gas and LNG services at www.ReeseEnergyConsulting.com.

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Gas Puts the Sport in China’s Olympic Games

Gas Puts the Sport in China’s Olympic Games

​When China put its name in the hat to host the 2008 Olympic games, the country had seven years to meet the WHO’s environmental standards and drastically curb its “airpocalpse.” The country invested billions to cut industrial and vehicle emissions; moved entire factories away from event venues; and opened six new subway lines to further reduce pollution. But once the games were complete and the standards lifted, China reverted to its old ways reaching the most toxic levels of air quality between 2012-2013. Then it entered the ring again. Reese Energy Consulting today is following news out of China, which spent another seven years to re-address its air and water quality issues in time for the 2021-2022 games. Amid international pressure for a “green” Olympics, the country’s efforts to clean up its act are largely dependent on more natural gas for electricity, vehicles, and public transportation. With the winter games ahead in February during peak winter season and China’s increasing demand for gas, LNG prices have already begun to soar with the latest spot prices up nearly four times year on year at $21.185/MMBTU. Cue the snowboards.

What do you think? Learn more about REC and our natural gas and LNG expertise at www.ReeseEnergyConsulting.com.

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American LNG. It’s Kind of a Big Deal.

American LNG. It’s Kind of a Big Deal.

There’s good news to spare this week in the Land of American LNG and we’re proud to be a shameless promoter of those harnessing our abundance of natural gas to fuel countries around the world. Reese Energy Consulting today first directs the bullhorn to Va.-based Venture Global LNG, which has inked a 20-year sales agreement with Poland for an additional 2 MTPA. The latest purchase triples Venture Global’s shipments there in three years to 5.5 MTPA from its Calcasieu Pass and Plaquemines LNG facilities in La. On the heels of announcing its first stock dividend to shareholders, Houston-based Cheniere has growth on the brain at its La., and Texas terminals. Regarded as the pioneer of the American LNG export phenomena with the largest U.S. production platform, Cheniere will complete its sixth train at Sabine Pass before year end, bringing its total capacity at both facilities to 45 MTPA. Meanwhile, the company says it also will make a FID in 1Q 2022 for a Stage 3 expansion at its Corpus Christi terminal adding another 10 MTPA of capacity.

What do you think? Learn more about REC and our natural gas and LNG expertise at www.ReeseEnergyConsulting.com.