A sharp fall in European and Asian gas prices this year will put liquefied natural gas (LNG) export projects worldwide under heavy cost pressure, and even kill some off, as expected returns on investments have to be revised down along with prices.
Benchmark British gas prices for delivery next month have almost halved this year as healthy supplies have been met by low demand following a mild winter and because overall gas use is dropping due to improving energy efficiency, rising competing fuels like renewables and low population growth.
TransCanada Corporation (NYSE:TRP) has come under pressure from activist investor Sandell Asset Management Corporation (SAMC) to sell off its power generation business and sell all its US-based assets to the Master Limited Partnership (MLP) that it has a stake in, TC Pipelines LP. The move according to Sandell will help boost TransCanada’s stocks value and assure higher return for its shareholders.
TransCanada Corp, the country’s No. 2 pipeline company and the backer of the controversial Keystone XL pipeline, said on Thursday its second-quarter profit rose 14 percent on gains from the sale of a unit.
The company said net income totaled $416-million, or 52 cents per share, in the quarter, which was up from $365-million, or 52 cents, in the same quarter of 2013.
The rise came as the company recorded a $99-million gain on the sale of its carbon black business. That was partially offset by a $31-million charge for changes to a natural gas storage contract.
TransCanada Corp., the Calgary-based company seeking to build the Keystone XL oil-sands pipeline, said third-quarter profit rose 30% as it took advantage of higher electricity prices.
Net income increased to $481-million (US$461-million), or 68 cents a share, from $369-million, or 52 cents, a year earlier, the company said in a statement on Marketwired today. Excluding one-time items, per-share profit exceeded the 59-cent average of 11 analysts’ estimates compiled by Bloomberg.
“I don’t see how it’s going to benefit consumers. I just don’t see it.”
CALGARY — The Conservatives in Ottawa are staunch supporters, the New Democrats have called it a “win-win-win” and the premiers of Alberta and New Brunswick have loudly touted the benefits of an oil pipeline from west to east.
TransCanada Corp., the nation’s largest natural-gas pipeline operator, said second-quarter net income fell 3.1% as a drop in gas prices reduced the value of inventory and contracts used to lock in prices.
Hedge funds raised bets on U.S. natural gas by the most in more than three months as weather forecasts showed a late-January cold spell that will boost demand for the heating fuel.
Money managers increased net-long positions, or wagers on rising prices, by 27 percent in the week ended Jan. 15, according to the Commodity Futures Trading Commission’s Jan. 18 Commitments of Traders report. It was the biggest weekly percentage gain since Oct. 2.
Natural-gas pipeline operator TransCanada Corp. announced Wednesday third-quarter profit of $345-million, or 50 cents a share, compared with $335-million, or 49 cents a share, in the third quarter of 2008.
By Jonathan Fishman:This winter is a harsh one in the U.S. At the beginning of January, a massive cold wave (which actually started in December) swept across the country. It was so bad, this cold wave even got its own Wikipedia article. On January 5, the temperature in Green Bay, Wisconsin was -18°F, the coldest temperature recorded since 1979. Chicago saw the temperature dive to -16°F, the lowest temperature since 1884, which was matched only once before, in 1988.
As part of our series looking at the future of American energy, The Financialist spoke to Osmar Abib, global head of Credit Suisse’s oil and gas investment banking group, about the rise of natural gas production in the U.S., thanks in large part to the development of shale gas fields.
The shale drilling revolution that has allowed natural gas producers to access vast, previously unreachable resources has already had a profound impact on the U.S. energy sector, but what that means for the broader economy and global trade is a larger question.