North American LNG Projects: Political and Economic Factors by Adrian K

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North American LNG Projects: Political and Economic Factors by Adrian K NOVEMBER 2014 North American LNG Projects: Political and Economic Factors By Adrian K. Yee Powered by New products and Delisting of products Potential impact Changes to data attributes, data sources and data sources on data replacement of products Editorial 4 Summary Electricity Markets Expand and Get Integrated. Moving towards Convergence. 4 Power 6 FERC Expands SPP Market by Integrating Western-UGP, Basin Electric,and Heartland 6 Argus Adds New NYISO Power Forwards and Heat Rates Data Modules 6 Czech Republic, Hungary, Romania, and Slovakia Integrated into European Power Markets 7 Thomson Reuters Offers Forecast Tool for Brazilian Power Markets 7 PJM and NYISO Implement Coordinated Transaction Scheduling 7 Nodal Exchanges to Form Nodal Clear as a Derivatives Clearing Organization 8 NYMEX Revises MISO Michigan Hub Electricity Contract Names and Sizes 8 NYMEX Modifies Block Trade Minimum Threshold for North American Electricity Futures and Options 8 ERCOT Mobile App Offers Updates in Five Minute Intervals 9 Petroleum 10 Platts to Launch ICE Gasoil EFS, ESS Assessments at Singapore Close 10 Platts Lists New Clean Medium Range Tanker Freight Rate Assessment 10 Platts Publishes Libyan Crude Mesla Official Selling Price 10 Argus Introduces New Market to Forward Curves Publication 10 Argus Adds New Gulf Coast Markets to Its Refined Products Module 11 Argus Lists New East Chinese Propylene Oxide Assessments 11 Argus Creates Gasoil Diesel Winter Assessment to Caspian Market Report 11 NYMEX to List Cash-Settled Louisiana Light Sweet Crude Oil Futures 12 NYMEX Lists Canadian Heavy Crude Oil BALMO Futures 13 NYMEX Adds Crude Oil Mid-Curve Options 13 ICE Futures Europe Launches Two Gulf Coast Gasoline Futures 14 EIA Releases New Tool for Oil Import Analysis 14 GFI Empire Electronic Brokerage Launches Block Futures 14 Platts to End Chile Marine Diesel Oil Assessment 14 Platts to Discontinue Northwest European Dioctyl Phythalate Assessments 15 Platts to Discontinue Q1, Q2 Benzene Assessments 15 Platts Discontinues Gasoil 0.1% and Fuel Oil 3.5% from Power Cost Comparisons 15 Platts to Cease Publishing ARPEL Postings 15 NYMEX Delists Seven Low Sulphur Gasoil Based Futures and Options 16 Platts to Edit Specifications of FOB ARA Solvent 16 Platts to Base Full Cargoes on Malaysian Tapis and Indonesian Minas Crude Oil 16 Argus to Replace NWE Toluene, Paraxylene, and Mixed Xylene Assessments 17 NYMEX Permits Block Trading in Crude Oil BALMO Futures and MidCurve Options 17 CME Amends NY Harbor ULSD Crack Spread, RBOB Gasoline Calendar Spread, and Other Petroleum Option Contracts 17 Natural Gas 18 Platts to Add New Monthly Listing for Transco, Zone 5 Delivered 18 Platts to Create Sublistings for Transco, Zone 6 Non-New York North 19 Argus Adds Assessments to International LPG Publication 19 Argus Creates New Propane Conway and Targa Assessments 20 Argus Adds New AOC European Natural Gas Assessments 20 CME Lists New Columbia, Dominion, South Point, and Texas Eastern Zone M-3 Natural Gas Options 21 ICE Endex Introduces Belgian ZTP Natural Gas Futures 21 NYMEX Introduces Block Trading for Columbia, Dominion, and Texas Eastern Natural Gas Pipe Options 22 CME Amends Henry Hub Calendar Spread Option Contract 22 Coal 23 Platts to Change Calorific Value Basis of Russian and Poland Baltic Coal Assessments 23 Softs and Metals 24 Platts to Publish Singapore Time Sugar Futures Assessments 24 Argus Adds New Assessments to Argus Biomass Report and Data Module 24 Argus Introduces New RIN Americas Biofuels Assessments 24 Successful Farming and AgriCharts Launch New Mobile Application for Farmers 25 CME Group Delists Urea (Prilled) FOB Yuzhny Swaps (Clearing Only) Contracts 25 November 2014 2 Platts to Launch New UK Hot Rolled Coil Assessment 26 Summary Platts to Release Daily Data Analysis on Turkish Rebar Billet and Scrap Markets 26 Platts Introduces New Dry Freight Wire Monthly Report 27 NYMEX to List New Iron Ore Futures Contract 27 ICE Benchmark Administration to Become New Administrator of the LBMA Gold Price 28 Platts to Cease Publishing Weekly New York Dealer Osmium Price 28 Platts to Remove Weekly FOB China Tungsten Prices 28 Platts to Delist CIF Japan Indium Price Assessment 29 Platts Removes Some Fixed Pages from Metals Alert Service 29 HKEx Group and China Merchants Group to Collaborate on Product Development 29 Platts to Increase Frequency of US Midwestern Wire Rod Assessment 29 Finance 30 CME to Release US/Chilean Peso Futures Contract 30 CBOE Launches 10-Year US Treasury Note Volatility Index Futures 30 Thompson Reuters Creates StarMine Quality Earners APAC Ex-Japan Income Index 30 Bloomberg Launches List Trading Tool for Interest Rate Swaps 31 ICE to Open ICE Futures Singapore and ICE Clear Singapore in March 2015 31 ICE Completes Transition of Liffe’s European Interest Rates to ICE Futures Europe 31 ICE Clear Credit Starts Sovereign CDS Clearing for Hungary and South Africa 33 Deutsche Börse Begins Sovereign Bond Indexes for Africa’s Developed Economies 33 Deutsche Börse Adds Exchange Traded Commodities and Exchange Traded Notes from Boost ETP to Xetra 33 Deutsche Börse Lists SPDR Bond Index ETF on Xetra 34 Bank of China Authorized as Trading and Clearing Participant at Deutsche Börse 34 Nasdaq Lists FlexShares Credit-Scored US Corporate Bond Index Fund 35 Iraq Stock Exchange Introduces Nasdaq’s X-stream Trading Technology 35 Nasdaq Buyback Index Launches as ETF in Europe 35 Nasdaq Point of Presence Announced 35 Nasdaq Lists First Trust Emerging Markets Local Currency Bond ETF and First Trust Low Duration Mortgage Opportunities ETF 35 Nasdaq Adds First Trust International IPO ETF 36 ISE Launches ISE Cyber Security Index 36 Eurex Exchange Launches Variance Futures Contract with DRW 37 Barchart Begins On-Demand Equity Options Market Data 37 ASX and Bank of China Sign Agreement to Expand Cooperation 37 China Financial Futures Exchange Signs MOU with Korea Exchange 37 Other 38 US Department of Energy Launches Mobile Application for Energy Emergencies 38 Bank of China and DME Announce Partnership Agreement 38 News from Data Vendors 49 New ZEMA Data Reports – November 2014 39 ZE Publishes White Paper about Acquiring ZEMA vs. Building an Enterprise Data Management System 39 MDA Offers New Real-Time Weather Products 40 Portugal Launches Fuel Reference Prices Based on Argus 40 15-Minute Intraday Call Auction to Launch December 9, 2014 41 Monthly Market Analysis 42 Crude Oil Brent vs. WTI: Prompt-Month Contract (NYMEX) 42 Crude Oil Brent vs. WTI: Forward Curve (NYMEX) 43 Henry Hub Natural Gas Forward Curve (ICE) 43 North American Natural Gas Spot Prices (ICE) 44 Actual Weather (AccuWeather) 44 Electricity: Day-Ahead Prices (ICE) 46 In Depth 67 North American LNG Projects: Political and Economic Factors 47 November 2014 3 Editorial Electricity Markets Expand and Get Integrated. Moving towards Convergence. With the news remaining totally focused on crude oil markets over the last several months, the electric power sector has been somewhat abandoned by newsmakers. Meanwhile, during this period, electricity markets have been generating some very interesting developments. On the menu, there are several items offered by balancing authorities; regardless of the scale or location of these changes, all of them indicate the common trend of expansion by organized marketplaces and realignment of practices along interfaces between neighboring markets. In short, it means convergence, whether it is convergence of business practices, processes, or even prices. In November, two marketplaces — one in the Midwest United States and another in Europe — announced that they are expanding their borders. Following the FERC’s order of November 10, 2014, SPP will double the size of its service area with 9,500 miles of transmission lines and more than 3 million customers coming from Heartland Consumers Power District, Basin Electric Power Cooperative, and the Western Area Power Administration’s Upper Great Plains Region. The complete amalgamation is expected to take place in October 2015. However, prior to this glorious event, utilities will have to jump through many regulatory hoops. Some of them have to do with increased complexity over ongoing SPP and MISO cost allocation and the Joint Operating Agreement dispute that emerged after Entergy announced its departure from the SPP membership in order to join MISO. Another issue — and this one is unconventional — is that SPP will now have to deal with the federal agency status of WAPA that has a statutory obligation to provide preferential service to a certain group of clients (preference customers) and also falls under different exemptions that apply to federal entities. But those are only minor glitches. Across the ocean, the European Union marked another milestone on its way to consolidating different countries into one common power marketplace. Czech Republic, Hungary, Slovakia and Romania launched a coupled day-ahead electricity market on November 19, 2014. Heading towards the creation of an internal energy market for Europe, this set of harmonized procedures is moving power markets across Europe closer for future integration. November 2014 4 Consolidation and integration processes on a country- or Editorial even county-level are very tenuous and lengthy; however, Olga Gorstenko even alignment of practices along market interfaces is not an easy task. Initiatives on eliminating seams in Editor interconnected grids through modifications of the Olga Gorstenko existing tools and processes have been taken on by Phone: 778-296-4183
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