Articles tagged Drought

Impressive heat in the forecast for the second half of June sparked a rally in the natural gas forwards markets from June 6-12, with double-digit gains spread across most of the Lower 48, according to NGI’s Forward Look.

Much of Canada could endure sizzling summer conditions that could drive robust cooling demand and potentially curtail hydropower – amplifying demand for natural gas.

While shippers await a possible easing of congestion at the Panama Canal in the coming weeks, the volume of U.S. LNG heading through the key route has fallen to a record low.

Canadian oil and natural gas operators are working to manage water use as western provinces face increasingly dry conditions after a mild winter. 

A persistent drought impacting the Panama Canal has left LNG shippers with a few alternatives; either wait for weeks in a growing queue, pay exorbitant prices to jump the line or take a long detour.

A roundup of news and commentary from NGI’s LNG Insight

More U.S. LNG cargoes are taking longer and costlier routes to reach consumers in Asia as a drought impacting levels at the Panama Canal has increased wait times to transit the waterway.

The National Oceanic and Atmospheric Administration (NOAA) is predicting expanded drought conditions for much of the Lower 48 this spring, foreshadowing significant implications for natural gas producers and consumers.

Brazilian national oil company Petróleo Brasileiro (Petrobras) reported a 43.5% year/year (y/y) increase in domestic natural gas sales volumes during the third quarter as severe drought limited hydroelectric output in the South American country.

The shutdown of California’s 644 MW Edward Hyatt hydroelectric power plant because of insufficient water levels at the Oroville Dam reservoir is squeezing an already tight power market in the western United States, according to Moody’s Investors Services.