There was big energy news last week as the Department of Energy approved Freeport LNG’s request to export liquefied natural gas to nations that do not have a Free Trade Agreement (FTA) with the U.S. See the link below – one of many on this topic. Freeport is now likely to be the second large export terminal to be built in the U.S. with additional sites still awaiting approval.
There was an impact on natural gas futures trades on the New York Mercantile Exchange (NYMEX). While prices for all terms rose last week for reasons that may not have been directly related to this news, there was one trend of particular interest. While near-term prices were up, long-term prices moved up more which is unusual. The NYMEX prices for the next 12 months have risen by $0.21/MMBtu over the last 6 days while prices for Calendar 2017 have risen by $0.30/MMBtu. Near-term prices have been supported by warm weather, but long-term prices reacted to the news about Freeport.