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)
GQHPX +1.
GQHPX
GQHPX @Mav123,
The Summary
Prospectus (dated August
1, 2022) indicates that Rajiv Jain,
James Anders, Brian Kersmanc, and Sudarshan Murthy manage GQFIX.
Mr. Kersmanc and Mr. Murthy started managing the fund on July
1, 2022.
Who departed GQFIX?
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.
RPIEX: Contrarian Bond Fund “ Although the benchmark is the ICE BofA US 3-Month Treasury Bill Index, the portfolio’s unconstrained approach makes direct positioning comparisons with the benchmark much less informative than for traditional fixed income funds whose holdings are more closely aligned with an index.
As a result, we refer to positions as long (those benefiting from an increase in price) or short (those benefiting from a decrease in price) as opposed to overweight or underweight relative to the benchmark.”So then as noted by
@yogibearbull, this is one of the important lines in their portfolio:
Asset Class Net Short Long Cat. Index
U.S. Equity
1.
11 0.00
1.
11 0.75 –
Non-U.S. Equ 0.52 0.00 0.52 0.05 –
Fixed Income 29.50. 76.30 105.79 91.65 –
Other 0.00 0.00 0.00 6.28 –
Cash 68.75. 0.00 68.75 47.93 –
Not Classified 0.
12 0.00 0.
12
1.70 –
GQHPX @Observant1,
@BenWP, and others, is this a good fund to own since the manager has departed? GQFIX
RPIEX: Contrarian Bond Fund
What IS this animal?
ORK! Thanks for that,
@yogibearbull. No way.
@JohnN. AMLP. 2 stars and a "Negative" opinion at Morningstar. But there are other sources of information to compare...
RPIEX: Contrarian Bond Fund While many bond funds use some derivatives, here were some flags for RPIEX:
High cash
Low genuine bonds/FI
Low duration M* 2.05, YF -0.04
SD OK at 4.4
Top 10 holdings showing several derivative positions. Normally, one has to scroll to the end of portfolio list to find derivatives mentioned.
All these indicated to me rather heavy use of derivatives for exposure (small $s needed for full nominal exposure) and duration control. Some derivatives were for currencies.
Nothing wrong with such funds so long the holders understand the strategy, risks and atypical price movements.
I have mentioned this elsewhere that when there are large moves in the markets (credit market here), derivative losses tend to be permanent - it isn't possible to just hang on to them hoping for some recovery as one may hope for genuine stocks and bonds holdings.
RPIEX: Contrarian Bond Fund Not long ago, I purchased a toe-hold in RPIEX. As I’ve watched this global bond fund, it has consistently zagged when the market zigged. Case in point, yesterday, while short term BSV dipped .18% and intermediate-term BIV dropped .49%, RPIEX gained .62%. This is not a complaint; just don’t know why, especially given the generous cash holding. Thoughts?
