With Henry Hub (HH) natural gas prices almost twice as high year over year, as of the time of writing in late October, and similarly record-high prices in Europe and Asia driving competition for LNG, the gas market is rife with tension. Below-average storage levels heading into the heating season have boosted demand for U.S. LNG and exacerbated tensions among EU governments.
With electricity prices expected to soar over the 2021–2022 winter, the European Commission is floating the idea of joint purchases of natural gas by EU countries and an overhaul of power markets. Wealthy, climate-driven countries in northern Europe insist that the present crisis is not tied to EU green ambitions, while southern and eastern nations are more skeptical. The EU’s plan to ban new fossil fuel cars by 2035 and slap a carbon tax on home heating could prove tough to sell to consumers if double-digit power price increases materialize over the winter.
Meanwhile, the U.S. EIA expects HH prices to calm after Q1 2022 as LNG production capacity increases, outpacing demand for LNG export supply. HH prices are anticipated to average $4.01/MMBtu in 2022, although the unreliability of weather forecasts make the price outlook for this winter uncertain.
Just as disruption in gas markets is sure to bring new direction, this Editorial Comment marks the end of my leadership of Gas Processing & LNG after 8.5 years. Be on the lookout for a change in the editorial roster in 2022, and thanks for your many years of insightful feedback and readership! GP
The gas processing/LNG sector is investing in new technologies to mitigate carbon emissions from both operations and its supply chain.
Industry Focus: Maximizing the performance of your ETRM system
-Teresa Kroh, Brad York
Energy trading and risk management (ETRM) systems are vital for the support of business processes associated with trading energy commodities such as crude oil, refined products, natural gas, natural gas liquids (NGLs) and electric power, as well as facilitating the movement and delivery of those energy commodities and associated risk management activities.
-Oz Rodriguez, Catriona Penman
More than 100 participating countries at the 26th UN Climate Change Conference of the Parties (COP26) signed the Global Methane Pledge, in which they agreed to take action to reduce methane emissions at least 30% by 2030 vs. 2020 levels.
Optimizing Gas Distribution: Accounting for Changeovers, Regulators, and More
Gas distribution systems are critical to the effective operation of many industrial facilities around the world. Despite the importance of these systems, however, opportunities to improve their performance and cost-effectiveness are often missed or misunderstood. Increasing changeover pressure may seem like a good way to improve system flow, for example, but it often does so at the expense of bottled gas. Adding regulators may help you control supply pressure, but it also adds cost to your system. So, how do you know what the ideal gas distribution setup is for you?
Attend this webinar to:
- Gain a basic understanding of the fluid dynamics that affect pressure control in gas distribution systems, learning to interpret flow curves and recognize phenomena like lockup, droop, and supply pressure effect (SPE)
- Learn how inlet pressure affects regulator performance and when to specify certain regulator types and configurations to effectively control gas system pressures
Understand the inherent trade-offs between gas utilization and flow capacity and how to select both the right changeover pressure and automatic changeover panel design for your operations.
May 4, 2021 10:00 AM CDT