United States Natural Gas Fund LP (UNG)

[ogbull]

BULLISH FOR NATGAS:

EIA forecasts that new industrial projects will help drive growth in industrial natural gas demand through the end of 2016. By the end of 2015, industrial natural gas consumption is expected to reach an annual average of 21.7 Bcf/d (3.4% above 2014 consumption). Industrial natural gas consumption is expected to increase by another 3.9% in 2016, to an average of 22.5 Bcf/d. In 2016, three methanol plants are expected to come online in the Gulf of Mexico area, with a combined capacity of almost 0.4 Bcf/d. Additionally, a large nitrogen fertilizer plant, estimated to use 0.1 Bcf/d of natural gas, is currently under construction on Louisiana's Gulf Coast and is expected to come online in 2016, according to Bentek Energy.

https://www.eia.gov/todayinenergy/detail.cfm?id=22272


Natural Gas Is Bringing Manufacturing Back to the U.S.

The low price of natural gas is reviving American manufacturing and creating hundreds of thousands of jobs as companies build or expand plants. Natural gas is a major input to fertilizer manufacturing, and natural gas liquids are an important feedstock for chemical manufacturing. The American Chemistry Council reports that manufacturers are planning 148 new chemical manufacturing projects to take advantage of abundant, affordable natural gas and liquids supplies. ACC anticipates over $100 billion in new capital investment will create 637,000 permanent new jobs in the chemical industry and add $81 billion in annual economic output by 2023.

European companies are moving their manufacturing to the United States to take advantage of our abundant natural gas supply. BASF is converting a crude-based naphtha cracker in Port Arthur, TX, to run on natural gas-based ethane. Linde, a German industrial gas company, plans to invest $200 million in Texas to create the world’s largest natural gas-based syngas chemical plant.

http://www.westernenergyalliance.org/why-western-oil-natural-gas/powering-america/manufacturing