7/29: Britain to keep coal-fired power plants open this winter

Britain to keep coal-fired power plants open this winter (Reuters)

The UK's Department for Environment, Food and Rural Affairs (DEFRA) said on Friday it has been directed by the government to temporarily relax permitting conditions for coal-fired power stations in England during the winter period.

"The direction is to...address energy security issues if they arise, whilst aiming to limit unnecessary pollution," it said in a statement.

7/29: Exxon deal a long-term boost for Brownsville LNG project

Exxon deal a long-term boost for Brownsville LNG project (Houston Chronicle)

NextDecade’s development in Brownsville, Rio Grande LNG, gained more traction this week as the Houston-based liquefied natural gas company reached a long-term agreement to sell LNG to Exxon Mobil.

Exxon agreed to buy 1 million metric tons of LNG from the project’s first two production units, scheduled to come online as early as 2026.

7/29: Salts Steer Small Storage Showing

This week's meager EIA Weekly Natural Gas Storage Report build of just +15 Bcf was led by a -11 Bcf draw in salt storage. Located in the South-Central region, salt storage is able to switch between injection/withdrawal mode at a much higher rate than other methods of underground storage. Even with the loss of near ~2 Bcf/d from feedgas demand at Freeport LNG, blanketed hot weather in the region has cause stocks to continue to draw down below the five-year seasonal average. Stocks in salt storage currently sit at 195 Bcf, well below the five-year seasonal average of 272 Bcf.

7/28: U.S. Propane Prices Strengthened Relative to Crude Oil With Propane to WTI Ratio Increasing Almost 5%

Mont Belvieu propane prices were relatively flat, increasing about 1 c/gal over the last week, closing at $1.14/gal on July 26. Crude oil prices were weaker than propane on a relative basis, with WTI closing at $94.98/bbl on July 26, down 8.8% from a week ago.  Propane prices strengthened relative to crude oil, with the ratio to WTI Cushing closing at 50.5% on July 26, up 4.8 percentage points from last week. The forward propane-to-WTI ratio was relatively unchanged, with the winter peak remaining at 53.2% in February 2023. 

7/28: Diesel Exports Sink As Prices Slide

Distillate production remained flat at 5 MMb/d and implied diesel demand was at 3.75 MMb/d last week, right at the average for the past 2 months.  Net exports fell 150 Mb/d to 1.4 MMb/d as exports sank, while stocks were down by 110 Mb/d. The average price for Number 2 diesel fell by another $0.16/gal to $5.27 last week, the 5th consecutive weekly price decrease. For more on this follow the RBN Crude Gusher.

 

7/28: How Sempra and ConocoPhillips' LNG partnership came together

How Sempra and ConocoPhillips' LNG partnership came together (Houston Business Journal)

San Diego-based Sempra's (NYSE: SRE) long-delayed Port Arthur LNG export terminal project east of Houston has gotten a fresh wave of interest and attention in recent months.

First, three big potential customers moved closer to signing long-term contracts. In May, a Polish company known as PGNiG announced it was interested in buying 3 million tons of liquefied natural gas per year from Sempra’s LNG terminals, a

7/28: Limited frack supply could hamper U.S. crude oil output

Limited frack supply could hamper U.S. crude oil output (Reuters)

Demand for hydraulic fracturing equipment is quickly outpacing supply, executives said this week, setting the stage for a new obstacle to U.S. oil and gas production growth.

Oil companies have been under pressure from the Biden administration to lift production to curb high energy prices. Some companies, particularly private firms, also want to boost output to capitalize on oil's surge to $100 a barrel. However, in order to boost output, equipment and crews are needed.