Time to invest in natural gas ? NEW YORK, Aug 23 (Reuters) - North American liquefied natural gas (LNG) developers and producers this year have struck deals to sell 48 million tonnes of LNG, which will eventually pump up exports 60% from current levels, although much of the output remains years away.
LNG demand is soaring as the conflict in Ukraine pushes global prices to their highest in at least 14 years. Buyers in Europe have looked West in a move away from Russian gas, and Chinese buyers are striking long-term deals after a pause.
New gas-export plants are being developed across the United States, and Mexico and Canada are poised to join as significant gas exporters, with plants proposed for their west coasts.
Eight North American LNG export terminals are under construction and over a dozen more could receive financial greenlights by 2023. Some buyers have locked in supplies from plants that have not yet been approved for construction, so not every supply agreement may go ahead.
"The dynamics have shifted," said Charlie Riedl, executive director for trade group Center for Liquefied Natural Gas. "Buyers are trying to lock up firm agreements where they can (to) guarantee that gas is going to be delivered," he said.
For a factbox on North American LNG export plants, see
This week, European gas prices hit $84 per million British thermal units (mmBtu) and U.S. gas futures on Tuesday topped $10 per mmBtu for the first time since 2008.
'LONG-TERM ROLE'
Goldman Sachs forecasts global LNG demand to rise about 12% 424 MTPA next year and expects new plants that will supply 156 MTPA to be approved within the next five years.
Growing demand has made the United States this year's largest LNG exporting nation during the first six months. Approved projects that are expected to begin shipments between 2023-2026 could keep the country in first place.
"It is important for the United States to supply the market to support allies in Europe and Asia and improve the ability of the developing world to access gas," said Mike Sabel, Venture Global LNG's chief executive. His firm has entered into agreements to sell 18.5 MTPA of LNG since last September.
Some of the biggest deals are from Chinese firms returning to the U.S. market after a pause over tariff disputes. Late last year, Venture Global LNG struck deals for 11 MTPA with units of China's Sinopec and CNOOC Ltd. China's ENN Natural Gas Co signed separate deals last year with Cheniere Energy and Energy Transfer.
Due to the lack of available capacity, some recent deals have involved facilities whose construction have not yet received financial approvals. Those agreements "reinforce our conviction in the long-term role" for LNG in global energy markets, said Tim Wyatt, a Cheniere senior vice president.
For a factbox on recent North American LNG deals, see
But rising demand has led to construction of three new U.S. export projects and several more could be approved in 2023.
"The global energy crisis has been years in the making due to significant underinvestment," said Octavio Simoes, CEO of Tellurian, which recently started construction on its long-delayed plant in Louisiana.
TOP EXPORTERS
In 2021, top LNG exporters were Australia at 78.5 MTPA, Qatar at 77.0 MTPA, the United States at 67.0 MTPA and Russia at 29.7 MTPA, according to the International Gas Union (IGU), an industry group.
The United States, with vast reserves of shale gas, is on track to produce a record 85 MTPA of LNG this year, according to U.S. government projections.
About 68% of U.S LNG exports went to Europe during the first half of 2022 versus just 35% in all of 2021, according to data provider Refinitiv.
There are four export plants under construction in the United States that will boost the nation's capacity to produce LNG from 104.6 MTPA now to 156.3 MTPA in 2026.
In addition, two export plants are under construction in Canada and two in Mexico that will add another 20.8 MTPA to North America's LNG production once all of the facilities enter service by 2027.
(Reporting by Scott DiSavino; Editing by David Gregorio)
LNG news thing. 23rd Aug, '22 You'll recognize the names that are dropped.
Taken from the TRP webpage.
NEW YORK, Aug 23 (Reuters) - North American liquefied natural gas (LNG) developers and producers this year have struck deals to sell 48 million tonnes of LNG, which will eventually pump up exports 60% from current levels, although much of the output remains years away.
LNG demand is soaring as the conflict in Ukraine pushes global prices to their highest in at least 14 years. Buyers in Europe have looked West in a move away from Russian gas, and Chinese buyers are striking long-term deals after a pause.
New gas-export plants are being developed across the United States, and Mexico and Canada are poised to join as significant gas exporters, with plants proposed for their west coasts.
Eight North American LNG export terminals are under construction and over a dozen more could receive financial greenlights by 2023. Some buyers have locked in supplies from plants that have not yet been approved for construction, so not every supply agreement may go ahead.
"The dynamics have shifted," said Charlie Riedl, executive director for trade group Center for Liquefied Natural Gas. "Buyers are trying to lock up firm agreements where they can (to) guarantee that gas is going to be delivered," he said.
For a factbox on North American LNG export plants, see
This week, European gas prices hit $84 per million British thermal units (mmBtu) and U.S. gas futures on Tuesday topped $10 per mmBtu for the first time since 2008.
'LONG-TERM ROLE'
Goldman Sachs forecasts global LNG demand to rise about 12% 424 MTPA next year and expects new plants that will supply 156 MTPA to be approved within the next five years.
Growing demand has made the United States this year's largest LNG exporting nation during the first six months. Approved projects that are expected to begin shipments between 2023-2026 could keep the country in first place.
"It is important for the United States to supply the market to support allies in Europe and Asia and improve the ability of the developing world to access gas," said Mike Sabel, Venture Global LNG's chief executive. His firm has entered into agreements to sell 18.5 MTPA of LNG since last September.
Some of the biggest deals are from Chinese firms returning to the U.S. market after a pause over tariff disputes. Late last year, Venture Global LNG struck deals for 11 MTPA with units of China's Sinopec and CNOOC Ltd. China's ENN Natural Gas Co signed separate deals last year with Cheniere Energy and Energy Transfer.
Due to the lack of available capacity, some recent deals have involved facilities whose construction have not yet received financial approvals. Those agreements "reinforce our conviction in the long-term role" for LNG in global energy markets, said Tim Wyatt, a Cheniere senior vice president.
For a factbox on recent North American LNG deals, see
But rising demand has led to construction of three new U.S. export projects and several more could be approved in 2023.
"The global energy crisis has been years in the making due to significant underinvestment," said Octavio Simoes, CEO of Tellurian, which recently started construction on its long-delayed plant in Louisiana.
TOP EXPORTERS
In 2021, top LNG exporters were Australia at 78.5 MTPA, Qatar at 77.0 MTPA, the United States at 67.0 MTPA and Russia at 29.7 MTPA, according to the International Gas Union (IGU), an industry group.
The United States, with vast reserves of shale gas, is on track to produce a record 85 MTPA of LNG this year, according to U.S. government projections.
About 68% of U.S LNG exports went to Europe during the first half of 2022 versus just 35% in all of 2021, according to data provider Refinitiv.
There are four export plants under construction in the United States that will boost the nation's capacity to produce LNG from 104.6 MTPA now to 156.3 MTPA in 2026.
In addition, two export plants are under construction in Canada and two in Mexico that will add another 20.8 MTPA to North America's LNG production once all of the facilities enter service by 2027.
(Reporting by Scott DiSavino; Editing by David Gregorio)
RPIEX: Contrarian Bond Fund https://www.mutualfundobserver.com/discuss/discussion/54925/what-s-a-bond-fund-like-this-doing-in-t-rowe-s-stable-rpiexI question whether this fund should any longer be considered “contrarian”. ISTM that for the past year or more it’s been
“going with the trend” - that being betting on generally rising interest rates.
If you really want to be
“contrarian” today buy a traditional
long-only investment grade bond fund having an average maturity of 15
years or more. I recently speculated that such bonds / bond funds appear ripe to have a good year. Received a “thumbs down” from member. Suspect that would be the prevailing opinion / conventional wisdom today.
Enjoying the discussion and everyone’s comment.
Schwab Issued Corrected 1099 in August! The dysfunctions at the IRS are a direct result of the Republicans for years deliberately starving it of the funding necessary to properly run the place. Yet another example, as if we needed one, of their continuous assault on the federal government.
And no, I'm no fan of the IRS either, but if we're going to run a country we need to be able to enforce the rules and collect the taxes legitimately due.
Precisely.
Mutual Funds and Capital Gains Taxes Markets also cooperated by being mostly in bullish trend leading to fund inflows. Remember, VG has been the king of fund inflows.
Flipside of the connection between VG OEFs and ETFs is that when there were large redemptions/outflows in 2020 (and in any other years), both the VG OEF and the related VG ETF had similar CG distributions. See the short table below.
Self-standing non-VG bond ETFs didn't have this issue. Much of the benefit from the ETF structure is from the combination of indexing and nontaxable in-kind trading. There are some additional benefits from the VG patented structure of having OEF and ETF classes. VG didn't license its patent to anybody else and others didn't really beg VG for that license. But things may change in/after 2023.
2020 CGs for several VG bond funds
VEDTX /EDV 3.16%
VBLAX /BLV 2.69%
VBILX /BIV 0.71%
VSIGX /VGIT 0.71%
VSBSX /VGSH 0.60%
So how does this help me? Do I want to own the ETF or OEF?
Mutual Funds and Capital Gains Taxes Markets also cooperated by being mostly in bullish trend leading to fund inflows. Remember, VG has been the king of fund inflows.
Flipside of the connection between VG OEFs and ETFs is that when there were large redemptions/outflows in 2020 (and in any other years), both the VG OEF and the related VG ETF had similar CG distributions. See the short table below.
Self-standing non-VG bond ETFs didn't have this issue. Much of the benefit from the ETF structure is from the combination of indexing and nontaxable in-kind trading. There are some additional benefits from the VG patented structure of having OEF and ETF classes. VG didn't license its patent to anybody else and others didn't really beg VG for that license. But things may change in/after 2023.
2020 CGs for several VG bond funds
VEDTX /EDV 3.16%
VBLAX /BLV 2.69%
VBILX /BIV 0.71%
VSIGX /VGIT 0.71%
VSBSX /VGSH 0.60%
Allocation Funds Are Back @hankI dunno Mr Hank...I am not an expert for sure but for certain I am not sanguine on bonds
I anticpated the following possiblities, scenarios and potentially negative for bond holders
* China, Japan continue to unload US Treasuries
*QT
*In reality, and all political narrative BS aside...inflation continues to go up, product/services continue to go up...gas sure a little cheaper but just wait until after the mid-terms when we replenish strat stock piles at even higher prices
*Did I mention mid term elections? I did. Wait for it. The cancelation of student debt, so more money to buy weed and shitcoins and sporty event gamblings.
* Wait for it...next and unlike the prior statement I totally agree with, the discharge of medical debt
* Wait for it....a complete debt jubilee once the weathy cannot pay the note on their overpriced crappy $675,000 starter homes
*Who and how is anyone paying on the half empty commercial buildings
*WAYYY too much debt created over the past dozen
years.
I can see laddering Tbills, 3 month, 6 month, 12 months...but everyting else...dunno, not for me
To me. Maybe a better allocation funds are the MAFIX, BLNDX...although I am not certain if they are just lucky with their timing, were in OIL/Energy, commodities, FX at the right time? MAFIX maybe better result but more balck boxy than BLDNX? Dunno. Maybe better 50/50 3 month Tbill and solid divy paying value fund, TWEIX like?
Good Luck to all,
Baseball Fan
Rondure Global Advisors - Chairwoman's letter Folks can we please try to turn down the volume here. I come here as do most others to engage in thoughtful investment discussions, not to deal with political vitriol. If you don’t like her political or social views then don’t invest in the fund. Simple as that. But Lewis is right her performance for her fund category is actually good. In the top 16% over the past 5 years. No need to go after the manager like that.
Rondure Global Advisors - Chairwoman's letter Rondure New World, i.e, RNWOX has beaten its peers handily in the past three years with less volatility than them as well so I’m not sure what the grotesque attack on the manager’s supposed “virtue signaling” is for. If anyone bought this emerging market stock fund expecting its behavior to be comparable somehow to “a 5-year CD,” that’s on you. You shouldn’t be invested in emerging markets at all if you think that. The manager shouldn’t be blamed for the fact those markets are volatile. There’s a reason they have the word “emerging” instead of “developed” in their name.
US Global Funds - Investor Alert - 8/19/22 Often when I see the phrase “climate agenda” in a story, I know the author has a fossil fuel or nuclear agenda as is the case here. No one has ever adequately figured out what to do with the highly radioactive form of nuclear waste from plants, which has a half life of thousands of
years:
https://eia.gov/energyexplained/nuclear/nuclear-power-and-the-environment.phpWhile it probably makes sense for nuclear to be part of the energy equation, the notion that the Europeans are somehow foolish for pursuing their “climate agenda” when the earth is on fire and America only just now passed a modest bill to address climate change is far sillier to me.
Schwab Issued Corrected 1099 in August! And so, Auntie Janet Yellen is throwing money at the IRS. Will it do any good?
It's the Congress giving the IRS a shot of the $ they've lost from GOP obstruction, and yes, it will improve things, and yes, it will be good to see more audits bring in more revenue from the super wealthy and corporations who pay so little in fed taxes now. What I experienced is a direct result of several
years of Republican sabotage.
How to Beat the Stock Market Without Even Lying WSJ article by Jason Zweig.
"You know all that stuff you’ve been hearing for so long about how fund managers can’t beat the market?
It isn’t true. Fund managers can easily beat the market. All they have to do is change which market they’re trying to beat.
Hundreds of them have been doing just that for
years. Such maneuvers are perfectly legal—and investors need to fend for themselves, because regulators have so far been paying little attention.
A new study by finance professors Kevin Mullally of the University of Central Florida and Andrea Rossi of the University of Arizona finds that between 2006 and 2018, 37% of all U.S. stock mutual funds pulled this kind of switcheroo."
ARTICLE
Schwab Issued Corrected 1099 in August! The dysfunctions at the IRS are a direct result of the Republicans for years deliberately starving it of the funding necessary to properly run the place. Yet another example, as if we needed one, of their continuous assault on the federal government.
And no, I'm no fan of the IRS either, but if we're going to run a country we need to be able to enforce the rules and collect the taxes legitimately due.
BulletShares versus ibonds bond ladder Have you used these to any success? There is a yield to maturity calculator on their website and I wonder how accurate it is to what you return would be if you purchased on that date.
I have some fixed expenses coming up in 5-6 years and I was thinking of using these defined maturity ETFs to pay for those.
Small-caps at all? @BenWP yes NEAIX is a very interesting one. Sold off a fair amount earlier this year but Great Owl and top decile performer over last 3 and 5
years. It's coming back. I'm also intrigued by BRSVX in small cap value. Held up very well this year.
