P&GJ reported that in spite of the COVID-19 crisis, U.S. natural gas exports to Mexico, almost all of which are transported by pipeline, have continued to increase in 2020, according to the U.S. Administration for Energy Intelligence (EIA).
Since surpassing Canada in 2015, Mexico has become the biggest destination for US natural gas exports. Other sources of Mexico's natural gas, including more costly LNG imports, have been replaced by U.S. natural gas pipeline exports, which have decreased every month since March 2020.
Natural gas is the main fuel used in Mexico for electricity generation. U.S. exports of natural gas via pipelines to Mexico averaged 5.1 Bcf / d and accounted for 61% of the supply of natural gas in the country in 2019.
The French government has urged Engie to halt agreements to conclude a multi-billion dollar US liquefied natural gas import deal on environmental concerns, Reuters reports.
Engie's $7 billion deal will be with NextDecade, which should determine whether to pursue plans for the construction of its planned Rio Grande export plant in Texas.
The move also comes in the midst of an escalating fight for Europe's gas markets between the United States and Russia, as well as trade tensions triggered by tensions between Paris and Washington over taxes on big digital firms.
Pipeline operator, Kinder Morgan, recently told investors that its Permian Highway pipeline was still on track to begin operation in 2021, as quarterly earnings dropped by 10% due to lower shipping volumes.
Because of the corona-virus crisis, the firm blamed the decline in pipeline flows of refined goods and natural gas on a decrease in energy demand.
The company's net profit dropped from $506 million, or 22 cents per share, a year ago, to $455 million, or 20 cents per share, in the third quarter ended Sept. 30.
Reuters reported on Tuesday that the U.S. natural gas futures jumped more than 4 percent to their highest close in 20 months on rising liquefied natural gas ( LNG) exports and forecasts over the next two weeks for colder weather and more heating demand than previously anticipated.
Refinitiv expects average demand to rise from 90.0 bcfd this week to 98.7 bcfd next week as LNG exports increase and the weather becomes colder.
So far in October, the volume of gas flowing to LNG export plants has averaged 6.9 bcfd, up from 5.7 bcfd in September.
Reuters reported on Monday that, ConocoPhillips agreed to purchase $9.7 billion from U.S. shale oil producer Concho Resources Inc, as the energy market continued to consolidate amid lower fuel prices and demand.
The transaction swaps 1.56 ConocoPhillips shares for each Concho share, a premium of around 1.5 percent over its price on Friday. At $49.30 in early trading on Monday, Concho shares were up 1.4 percent. In January, before the COVID-19 pandemic cut oil demand and costs, they sold for as much as $93 a share.
Kinder Morgan Louisiana Pipeline's Acadiana Project was approved by the U.S. Federal Energy Regulatory Commission.
P&GJ says the company sought permission for the construction of three additional compressor stations to add almost 1 billion cubic feet per day (bcfd) of the gas pipeline from Northern Louisiana to Cheniere Energy's Sabine Pass LNG export plant in the U.S. Coast of the Gulf.
A sixth liquefaction train is currently being added to the facility by Cheniere, which is scheduled to come online in the second half of 2022. Kinder Morgan plans to be in operation in the second quarter of 2022, which costs about $143 million under Acadian expansion.
P&GJ reported that Kleinfelder Group, based in San Diego, said that Gas Transmission Systems (GTS) utilities and pipeline services has been acquired for an undisclosed amount.
Established in 1998, with an emphasis on integrity management and restoration of aging infrastructure, GTS provides services to gas utilities and pipeline operators throughout the U.S.
Under the direction of President Ben Campbell, the GTS organizational structure will remain unchanged and will report through West Division Director Victor Auvinen, Kleinfelder opined that under the direction of President Ben Campbell, the GTS organizational structure will remain unchanged and will report through West Division Director Victor Auvine.
Last week, the Department of Petroleum Resources, DPR, issued guidelines for the formation and management of downstream gas facilities throughout the country, stating that before starting operations, companies seeking to set up gas-dispensing facilities would be required to obtain three approvals and licenses, among others. Companies planning to build such facilities must meet all the required conditions laid down in the DPR.
The facilities must be equipped with required amenities and equipment such as functional automated / manual leak sensors, functional fire alarm system, and mounted gas detectors, sufficient fire water storage and sprinklers, perimeter fence with fire wall, among others."