ADI Analytics was asked to provide an outlook on natural gas markets for CompressorTech2 magazine. Our article was featured in the August-September 2020 edition and provided insights from our research on the outlook of natural gas demand, supply pricing, projects, and implications on international trade. The article also covered the impact COVID-19 has had on natural gas markets and our expectations on a recovery in 2021.
In July 2020, Warren Buffett’s Berkshire Hathaway announced it will acquire Dominion Energy’s natural gas transmission and storage business for $9.7 billion. The deal includes natural gas pipelines, storage terminals, and a 25% stake in the Cove Point LNG terminal. Warren Buffet once said, “Our favorite holding period is forever”. While natural gas, like most commodities, will not be around forever, this deal does show that natural gas may be here for a while. Once thought of as a bridge fuel to renewable energy, natural gas has risen to prominence due to its environment friendliness, low cost, and widespread availability. This deal is yet another example of the growing role that natural gas will play in the energy mix going forward, either as a short- to medium-term bridge fuel, or as a long-term backup fuel for … Read the rest here.
