Sean Devine
Director of Natural Gas Sales
Freedom Energy
LNG, the liquid form of natural gas, is taken out of the ground as natural gas, and becomes a liquid when it is cooled to -162 degrees Celsius. e cooling process reduces the volume of natural gas by more than 600 times – which makes it easier and safer to store and transport.
Photo rights: Canaport LNG, NB CANADA E2L 3T5
When it comes to the link between colder than average temperatures and Natural Gas market volatility, New England knows better than most. e New England region had seen a very mild previous winter, and the effects of COVID 19 further brought down Natural Gas pricing across the entire region.
Fast forward to February 2021, where we saw most of the country experiencing colder than average temperatures. e New England grid is designed to handle these colder than average temperatures, and for the month of February 2021, the region was able to benet from a saving grace, LNG. Most of the news regarding LNG has revolved around our exportation facilities going to European and Asian markets.
Here we address how the region of New England was able to benefit from taking in LNG to tamper volatility on the supply side as well as pricing side.
Between Canaport and Everett, MA, the region received 5 LNG tanker loads that helped our region keep Natural Gas Cash pricing well below the volatile levels seen in previous cold winters. is LNG is gasied and injected into the region’s transport system. is brings lower cost gas immediately into the region bypassing the limited bandwidth of the major transport lines coming into the region. It goes to the power generators to keep the lights on, pressurizes the lines to keep the manufacturers running, and reduces volatility in pricing.
As the weather warms through March, we will see reduced withdrawals on the nation’s Natural Gas Storage facilities, and we will begin to transition to injection season which traditionally starts April 1 each year. Between April 1, and October 31, the facilities take injections, so they are ready to be released for withdrawal season. LNG helps play a role on both fronts of injections as well as withdrawals.
So next time you are driving to Logan Airport or are on the north shore of the Bay of Fundy, look at the terminals.
About Freedom Energy Logistics
Founded in 2006, Freedom Energy Logistics is a leading energy advisory. The private company offers comprehensive energy supply management and renewable energy solutions supporting energy goals and sustainability objectives for businesses and organizations throughout the U.S. Freedom’s team of energy experts has worked with and delivered energy saving, environmentally responsible solutions for some of the largest commercial and industrial companies, municipalities, universities, healthcare facilities, and businesses. With its headquarters located in Auburn, NH, Freedom Energy also has employees serving clients locally throughout the regions. Freedom Energy has been twice named to the Inc. 5000 list of fastest growing companies in America; recognized as one of the Fastest-Growing Family Businesses in NH by Business New Hampshire Magazine. Stay Work Play’s Coolest Company for Young Professionals; and received multiple Business Excellence Awards from New Hampshire Business Review.
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