Methanex Corporation (TSX:MX, NASDAQ:MEOH) and Chesapeake Energy Corporation (NYSE:CHK) have entered into a 10-year agreement to supply natural gas to Methanex's one million tonne per year methanol plant in Louisiana.
Factors including low gas rig counts, declining production levels, and faster-than-anticipated shale well declines present a scenario that could very well be conducive to natural gas price rallies in the short- to medium-term.
Bloomberg reported that shares in US coal mining companies rose after Chesapeake (NYSE:CHK) said gas production would be cut.
Industry players closely monitoring lawmaker’s debate over new production tax on operators in largest US natural gas field.
Legislation set to be tabled in the US Congress this week should provide a boost to the natural gas industry if it passes as expected.
China has an enormous gas market to be filled, both in the short term and long term, where natural gas will account for as much as 12 percent of the primary energy needs over the next decade from the current 3.8 percent. Shell's Chief Financial Officer Simon Henry indicated that the company may invest $1 billion each year in China if PetroChina's two wells in Sichuan province prove they have the potential for commercial gas production.
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