I believe someone might have already posted this article but in case you haven’t read it:
https://www.bloomberg.com/news/articles/2021-12-22/a-flotill…
To add a little more to this story Bloomberg TV has reported that 3 LNG tankers are parked off the East Coast of the US awaiting an expected cold spell and higher LNG prices before off-loading.
NH
Bloomberg TV has reported that 3 LNG tankers are parked off the East Coast of the US awaiting an expected cold spell and higher LNG prices before off-loading.
Buy low, sell high.
DB2
Bloomberg TV has reported that 3 LNG tankers are parked off the East Coast of the US awaiting an expected cold spell and higher LNG prices before off-loading.
…
Buy low, sell high.
DB2
Just guessing here as the “East Coast” is a very big place but many areas block pipelines that would probably have long term delivery contracts selling Nat gas much cheaper than LNG tankers selling at spot can deliver it for?
Anymouse
Confession: I’ve owned this fellow since 2008 when I got a really good price for it one day. It’s been an interesting education and a wild ride as I’ve traded some of it at times … not always the right time but overall it’s done well. It was mostly a Canadian operations involved in a lot of different stuff including Hydro projects (that it sold to the BC government). I think it is operating in South and East US, Michigan and even Alaska these days. I just realized I’ve barely looked at it in a very long time.
https://www.altagas.ca/infrastructure/utilities
https://www.washingtongas.com/
Just guessing here as the “East Coast” is a very big place but many areas block pipelines that would probably have long term delivery contracts selling Nat gas much cheaper than LNG tankers selling at spot can deliver it for?
And the fun part is that USA has just become the largest LNG exporter, but those 3 ships will be carrying gas from foreign sources.
https://oilprice.com/Latest-Energy-News/World-News/US-Overta…
This article takes a bit to get to the point, but explains the pipeline issues and why USA has to import LNG to east coast. (Jones Act)
https://oilprice.com/Energy/Energy-General/New-England-Is-On…
While the US has become the largest producer of natural gas and an ever-larger exporter of LNG, the country does not produce LNG carriers. Since there are no US LNG carriers, New England cannot benefit from the build-out of LNG export facilities along the Gulf of Mexico, despite having significant LNG import facilities like the one in Everett, Massachusetts. That means New England is in the same bidding pool as Europe and Asia. Amazingly, most LNG imports to the Everett terminal have come from Trinidad and Tobago! Instead of simply building pipelines to its land neighbors, New England pays for boats to sail more than 2,000 miles – burning fossil fuels and polluting the oceans as they do so – and pays a substantially higher price for the privilege.
The current increase in LNG exports even caused a stir in Congress, with Senator Elizabeth Warren accusing the industry of keeping production of natural gas low and hiking exports, and “gaming the system.”
“This corporate greed is inexcusable, and represents the results of a rigged system that enriches energy company executives and investors, and leaves American families struggling to pay the bills,” Senator Warren wrote in a letter to several energy companies last year.
https://oilprice.com/Latest-Energy-News/World-News/US-Overta…
Jaak
Thank you for recommending this post to our Best of feature.
Just guessing here as the “East Coast” is a very big place but many areas block pipelines that would probably have long term delivery contracts selling Nat gas much cheaper than LNG tankers selling at spot can deliver it for?
And the fun part is that USA has just become the largest LNG exporter, but those 3 ships will be carrying gas from foreign sources.
Thanks, Dave!
I had actually mentioned that in my post but then removed it because I couldn’t find the link I was looking for and my lunch was getting cold.
Only barely related but a really good friend of ours lives in Andover MA. Some may recall she was forced from her home when a huge overpressure in the Nat Gas pipes occurred. Other’s homes burned down and one neighbour was killed when their home blew up. Her hubby was away so she called me and asked what she should do. Her house didn’t catch fire and she sent me family Xmas pictures yesterday.
Tim
https://en.wikipedia.org/wiki/Merrimack_Valley_gas_explosion…
Merrimack Valley gas explosions
On September 13, 2018, excessive pressure in natural gas lines owned by Columbia Gas of Massachusetts caused a series of explosions and fires to occur in as many as 40 homes, with over 80 individual fires, in the towns of Lawrence, Andover, and North Andover, all within the Merrimack Valley, in Massachusetts, United States. One person, Leonel Rondon, was killed and 30,000 were forced to evacuate their homes immediately.
Bloomberg TV has reported that 3 LNG tankers are parked off the East Coast of the US awaiting an expected cold spell and higher LNG prices before off-loading.
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Just guessing here as the “East Coast” is a very big place but many areas block pipelines that would probably have long term delivery contracts selling Nat gas much cheaper than LNG tankers selling at spot can deliver it for?
IIRC, there are few pipelines in New England so they use fuel oil and LNG for heating. At any rate, the local utility companies are responsible for setting up long-term delivery contracts and making arrangements for spot purchases. The LNG tankers are waiting and are available to fill the spot purchase needs.
DB2
Jaak,
…with Senator Elizabeth Warren accusing the industry of …
I’m from Massachusetts - the land of Elizabeth Warren. I truly have to ask, does anyone actually listen to her rants??
This is NOT political. Just asking a fair question of the OP.
'38Packard
I’m from Massachusetts - the land of Elizabeth Warren. I truly have to ask, does anyone actually listen to her rants?
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She has lots of good rants and some not so good. She knows her economics and how corporations get away with economic murder of the working people.
Jaak
…with Senator Elizabeth Warren accusing the industry of…
—
I’m from Massachusetts - the land of Elizabeth Warren. I truly have to ask, does anyone actually listen to her rants?
That’s just her schtick.
DB2
That’s just her schtick.
DB2
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I like her honest schtick much better than the dishonest schtick of other politicians.
Jaak