LNG 101: How Europe’s Carbon Market Drives Demand for Natural Gas Imports
European carbon prices have soared in 2021, reaching heights not seen since the continent’s emissions trading system (ETS) was established in 2005 and signaling what could be a longer-term trend across a region looking to further tighten climate regulations.
Carbon prices hit a record by crossing the 50 euros per metric ton mark in early May. They have continued to trade around 50 euros since in what’s proved to be a boon for natural gas demand, along with other market fundamentals that have combined to support prices for the fuel in Europe.
Let’s start up with the current stock price of Tellurian Inc. (TELL), which is $5.11 to be very precise. The Stock rose vividly during the last session to $4.95 after opening rate of $4.29 while the lowest price it went was recorded $4.25 before closing at $4.80. Get the hottest stocks to trade e
Global natural gas prices moved higher Tuesday, recovering losses late last week as a warmer shift in forecasts was seen lifting demand in places like the United States and Asia.
In Europe, where colder spring weather has been driving abnormal heating demand for this time of year, temperatures are heating up. Natural gas prices on the continent surged in the middle of last week, mainly on news that Russia did not book additional pipeline capacity through Ukraine this month. While warmer forecasts dragged benchmarks like the UK’s National Balancing Point and the Dutch Title Transfer Facility down late last week, other market forces helped recoup those losses Tuesday.
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Tellurian Inc. and Gunvor Singapore Pte Ltd have announced an LNG sales and purchase agreement (SPA) for three million tpy for a 10 year period, indexed to a combination of two indices; the Japan Korea Marker (JKM) and the Dutch Title Transfer Facility (TTF), netted back for transportation charges. The LNG would be delivered free on board (FOB) from Tellurian’s Driftwood LNG, a 27.6 million tpy liquefaction facility proposed near Lake Charles, Louisiana in the US Gulf Coast.
President and CEO Octávio Simões said, “Tellurian intends to market up to 10 million tpy of LNG in our first phase on a JKM, TTF or blended price basis, as our integrated model provides the flexibility to offer this valuable product. We welcome Gunvor, the largest independent global trader of LNG volumes, to Driftwood and look forward to providing a cleaner fuel to meet growing global energy needs and enable energy access.”