New York develops plan to ease nat gas shortage

: Natural gas
19/03/20

The state of New York will invest $250mn in renewable energy and efficiency measures in response to a natural gas service moratorium in Westchester County that stems from a lack of sufficient pipeline capacity.

Utility Con Edison in January said that after 15 March it would no longer accept applications for new natural gas connections in the majority of its service area in Westchester County, New York, because of pipeline constraints. The New York Department of Public Service (DPS) in February said it would review natural gas supply and demand in the county to develop recommendations.

The DPS, the New York State Energy Research and Development Authority and the New York Power Authority late last week announced a plan to address the shortage, including: $165mn in grants to Con Edison for heat pumps and increasing gas efficiency for its residential, commercial and industrial customers; $32mn in financing services for customers to retrofit heating systems with alternatives to natural gas; $28mn for grants to new customers to use alternatives to natural gas for heating and cooling; and $25mn to improve energy efficiency to lower overall demand.

The agencies said the investments are expected to reduce energy consumption equivalent to the amount of gas to heat more than 90,000 homes.

The investments are not considered a complete fix for the critical lack of pipeline capacity in the state. While the state's initiatives are a "step in the right direction," state assemblyman Nader Sayegh (D)said he hopes the collaboration will enable the state to "find a long-term solution." White Plains mayor Thomas Roach said the program is a "vital first step" in ensuring the county's residents have access to energy.

Con Edison in September 2018 requested a six-year $305mn budget for a portfolio of non-pipeline gas projects, including targeted energy efficiency and heating electrification measures, three renewable gas production plants and up to five gas storage facilities in Westchester County. The state approved $222.6mn for the energy efficiency and heating electrification, but denied the utility's other requests, saying it should pursue or seek cost recovery in other ways.

The utility delivers gas to about 1.1mn people in New York City and Westchester County.

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

25/04/08

US tariffs set to rise despite Trump talk of deals

Washington, 8 April (Argus) — Punitive taxes on imports from key US trading partners are set to rise on Wednesday despite President Donald Trump's claims of multiple trade deals in the making. Trump's 10pc baseline tariff on imports nearly every foreign country already went into effect on 5 April. The higher, "reciprocal" taxes will go into effect as scheduled, at 12:01am ET on 9 April, US trade representative Jamieson Greer told the Senate Finance Committee today. Trump, via his social media platform, said today he discussed a possible trade deal with South Korea and added that "we are likewise dealing with many other countries, all of whom want to make a deal with the United States." Greer told the Senate panel that more than 50 countries have reached out to the US to negotiate trade deals. Treasury secretary Scott Bessent separately claimed that more than 70 countries are interested in a trade deal with the US. Both Democratic and Republican senators on the Senate panel pressed Greer to explain whether negotiations would result in lowering tariff rates. But Greer outlined a process that he expects would lower foreign countries' tariff rates on US products and commit them to buy more US energy and other products. "There are things we can do with our trading partners, things that aren't always purely in the trade sector," Greer said. Possible subjects for trade negotiations could involve "export controls alignment or investment screening, alignment on energy, making sure that our partners are tied up with us with respect to LNG and other resources, as opposed to being dependent on other countries." The US is primarily looking to reduce trade deficits with those countries, Greer said. "What we have told them is, 'if you have a better idea to achieve reciprocity and to get our trade deficit down, we want to talk to you.'" Trump, in turn, suggested that a possible deal with South Korea could include "large scale purchase of US LNG" and "their joint venture in an Alaska Pipeline". The latter is a reference to the planned 20mn t/yr Alaska LNG project, which would be the most expensive liquefaction facilities ever built in the US if it becomes a reality. Trump has talked up potential support for Alaska LNG from Japan, South Korea and Taiwan for months. But the three countries still became subject to high tariffs. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US mid-Atlantic gas prices may rise on cold

25/04/08

US mid-Atlantic gas prices may rise on cold

New York, 8 April (Argus) — Spot natural gas prices across the mid-Atlantic this week may rise on an increase in heating demand resulting from colder weather. The mid-Atlantic in the week ending on 12 April was forecast to have 148 population-weighted heating degree days (HDDs), up by 37pc from a week earlier and 12pc more than the seasonal norm, according to the US National Weather Service (NWS). Below-average temperatures were expected across the northeast US, eastern midcontinent and southeastern Canada through 11 April, according to the private forecaster Commodity Weather Group. Normal seasonal weather was expected in all those regions from 12-16 April, the forecaster noted. The May price at Transco zone 6 in New York was $3/mmBtu, and the 12-month strip was $4.54/mmBtu, according to Argus forward curves. Mid-Atlantic spot prices last week rose on an increase in weather-related demand, despite the 31 March official end to the winter heating season. The Transco zone 6 New York index in the week ended on 4 April averaged $3.37/mmBtu, up by 9pc from a week earlier and 5pc higher than the April bid week price. The Tetco M-3 index over the period averaged $3.32/mmBtu, up by 10pc from a week earlier and 3pc higher than the April bid week price. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Oil companies far from Paris accord alignment: Report

25/04/08

Oil companies far from Paris accord alignment: Report

London, 8 April (Argus) — None of the 30 oil and gas producers assessed are close to being in line with Paris climate agreement targets "and some have regressed", a report from think-tank Carbon Tracker found today. Carbon Tracker flagged "backsliding, particularly around oil and gas production plans" from the producers assessed in its report, Paris Maligned III . The think-tank assessed 30 of the largest producers — a mixture of corporations and national oil companies — against six metrics. These included production plans, greenhouse gas (GHG) reduction targets and methane reduction targets. It did not assess producers based in countries subject to international sanctions. "Almost all producers are planning to increase oil and gas production in the coming years… Such growth plans are at odds with the Paris Agreement's 1.5˚C target and many are incompatible with a below 2˚C scenario", the report found. The Intergovernmental Panel on Climate Change — seen as the overarching consensus on climate science — notes that a substantial reduction in fossil fuels is needed in order to reach climate goals. The Paris agreement seeks to limit the rise in global temperatures to "well below" 2°C above pre-industrial levels and preferably to 1.5°C. The only producers assessed that are not planning to increase production are London-listed independent Harbour Energy and Spain's Repsol, Carbon Tracker found. Carbon Tracker ranked Repsol highest overall for alignment with Paris agreement goals and Harbour Energy in second place. European companies were ranked more highly in line with Paris goals, with seven of the top 10 places. Three state-owned oil companies — Mexico's Pemex, Algeria's Sonatrach and Kuwait's KPC — and US firms ExxonMobil and ConocoPhillips took the five lowest places in the ranking table. "Despite some political and market headwinds, investor engagement on climate risk remains strong, particularly in Europe", the report noted. Carbon Tracker this year scored companies on the extent to which they planned to cut methane emissions — specifically "near-zero methane by 2030" across upstream activities and "midstream gas assets where applicable", it said. This is in line with the decarbonisation charter which many of the companies assessed signed up to at the UN Cop 28 climate summit in December 2023. Companies' methane reduction plans "are typically more climate-aligned than their overall GHG targets", the report found. But "there is still considerable room for improvement because significant sources of methane emissions are overlooked", it added. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US producers look overseas as shale stalls

25/04/07

US producers look overseas as shale stalls

New York, 7 April (Argus) — US shale producers are seeking to deploy their expertise around hydraulic fracturing in international markets, in a marked departure from their recent strategy and one that is set to accelerate as domestic output slows. Continental Resources — whose billionaire founder and executive chairman Harold Hamm was one of the driving forces behind the shale revolution after figuring out how to unlock the vast resources of North Dakota's Bakken basin with horizontal drilling — recently announced plans to explore for unconventional resources in Turkey. And EOG Resources aims to kick-start a drilling campaign in Bahrain. Early successes could prompt a scramble by peers to follow suit, which would be a reversal of the trend seen in the early days of the shale boom when the industry largely retrenched from overseas investments to concentrate on exploiting domestic plays. And while decisions to venture abroad have been mainly based on individual company strategies up until now — and investors have been lukewarm at best — forecasts for shale to start plateauing in the coming years could lend them greater impetus. "Maybe, as they have success, that will draw others in," energy investment firm Bison Interests chief investment officer and founder Josh Young says. "It could be the start of something big." The caveat is that a potential international push at scale is unlikely to happen overnight, and companies such as Murphy Oil and APA — which already have exploration campaigns under way from Vietnam to Ivory Coast and Suriname — have underperformed compared with their rivals. "You are not seeing that market acceptance or market credit for international projects," Young says. That perception may shift if international exploration yields above-average returns for shareholders, boosting the case for producers to seek to build out their inventory further afield as growth in the shale patch slowly grinds to a halt. International exploration may have its own risks, given shale's success story has largely been confined to the US and Argentina to date. But the "cost of entry is relatively low compared to a North American landscape with little room for exploration and high premiums for solid assets in the Permian", consultancy Rystad Energy vice-president for North America oil and gas Matthew Bernstein says. Hamm, who took Continental private more than two years ago after tiring of public markets, recently warned that US shale is beginning to plateau . "What we really need to concentrate on is where we go as we crest right here in America, what the downside looks like," he told the CERAWeek by S&P Global conference in Houston. He also signalled a greater openness to drill outside North America. Talking Turkey Continental recently announced a joint venture with Turkey's national oil company and US-based TransAtlantic Petroleum to develop oil and gas resources in southeast and northwest Turkey. State-owned Turkish Petroleum has pegged initial estimates from the Diyarbakir basin in the southeast that could reach 6bn bl of oil and 12 trillion-20 trillion ft³ (340bn-570bn m³) of gas. The Thrace basin in northwest Turkey may hold up to 20 trillion-45 trillion ft³. "We see immense potential in Turkey's untapped resources," Continental's chief executive, Doug Lawler, says. And in February, EOG Resources announced a tie-in with state-owned Bapco Energies to evaluate a gas prospect in Bahrain. EOG will take on the role of operator, and the venture is awaiting further government approvals. "The formation has previously been tested using horizontal technology, delivering positive results," EOG chief executive Ezra Yacob says. By deploying its existing skillset around horizontal drilling and completions, EOG is confident of achieving results that are competitive with projects in its domestic portfolio. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump shakes global trade order, exempts energy

25/04/07

Trump shakes global trade order, exempts energy

Washington, 7 April (Argus) — The US energy industry may feel relieved after President Donald Trump spared oil and other energy commodities from the punitive taxes he announced on nearly all US trading partners on 2 April. But global economic fallout from a drastic protectionist measure will affect the energy industry indirectly, and countries looking for ways to retaliate against Trump's trade actions may follow China's lead in targeting the US' oil, LNG and LPG exports. Trump on 2 April imposed a minimum 10pc tax on all foreign imports from 5 April, with the tariff as high as 34pc for China and 20pc for the EU after 9 April. Trump's executive order exempts all energy commodities and many metals and critical minerals. The 2 April tariffs will not apply to steel and aluminum, cars, trucks and auto parts, as these are already subject to separate tariffs. A 25pc tariff on all imported cars and trucks came into force on 3 April, while a 25pc tax on auto parts will take effect on 3 May. Trump calls his new tariffs "reciprocal", suggesting that foreign countries —which he alleges have high tariffs on US products — will be forced to negotiate to lower their barriers to trade. But Trump and his key allies in Congress have left little doubt that the tariffs are here to stay. The projected tariff revenue, which Trump's administration claims will be as high as $600bn/yr, is a key metric as Congress is advancing a bill to extend tax cuts and other economic priorities, Senate Republican majority leader John Thune says. Consultancy Oxford Economics is likely to lower its 2025 global economic growth forecast by 0.6 percentage points in the wake of the tariffs. But the Trump administration has dismissed the negative reaction from stock markets as a short-term adjustment. "The gravy train is over for the globalist elites, who have profited on the backs of hard-working Americans, looting us of our industries and hollowing out our heartlands," government agency Small Business Administration head Kelly Loeffler says. Loeffler's pre-Trump administration credentials include senior positions at financial firms with global reach, including the Ice exchange. Negotiate or fight back? China is the biggest casualty of Trump's protectionist turn. Including tariffs Trump imposed in February-March , all US imports from China will now be subject to a 54pc tariff, with some products taxed even higher — electric vehicles face a 154pc tax. The previous bout of Trump's trade war saw some of the bilateral trade shift to other east Asian economies, especially Vietnam — but US imports from that country will now be subject to a 46pc tariff. Conflicting messages — Trump said on 3 April he could make a deal over tariffs if it is "phenomenal", even though his White House is inputting tariff revenue in planned budgetary process — have led many key US trading partners to hope that a major trade war could be averted. The EU is preparing countermeasures, including punitive taxes on US technology giants, but European officials are also weighing concessions before the 20pc tariff starts on 9 April. The UK, which is subject to a 10pc import tax, is hoping to strike an "economic prosperity deal" with Trump, prime minister Keir Starmer says. Beijing on 4 April announced a 34pc retaliatory tax on all US imports, with no exemptions, even though Chinese petrochemicals firms have no ready alternative sources for US LPG supply. Ottawa's similarly strong retaliation seems to have worked — Trump spared Canada and Mexico from additional penalties on 2 April and did not revive the tariffs, imposed briefly last month, that were set to upend a highly integrated North American energy market. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more