gas daily - Stinson Leonard Street LLP

[NATURAL GAS ]
GAS DAILY
www.platts.com
Wednesday, November 19, 2014
Cold lifts US demand to new highs for November
A blast of unseasonably cold weather made its way across
BENTEK
ANALYSIS large swaths of the US on Tuesday, pushing total demand
to its highest November level on record.
Platts unit Bentek Energy estimates US demand hit 102 Bcf/d on
Tuesday, exceeding the 100 Bcf/d mark, which is a level typically not
reached until the peak winter months of December, January, and
(continued on page 8)
Oil, gas execs plan to boost spending
US oil and gas executives are confident about the future of the
nation’s energy security and plan to spend more capital this year
than last, according to a survey released Tuesday by consulting firm
Deloitte.
Sixty percent of the executives surveyed believe the industry is
headed in the right direction, Deloitte said, up from 40% in Deloitte’s
(continued on page 6)
Gas-electric coordination heats up in Southwest
As environmental regulations are expected to usher in greater integration of intermittent solar and wind resources for power generation,
utilities in the Desert Southwest are looking to FERC to issue policies
that will improve electric generators’ access to natural gas supplies on
short notice when the sun or wind suddenly are unavailable to meet
electric demand.
(continued on page 5)
NYMEX pulls back; Northeast cash tumbles
The NYMEX December gas futures contract reversed course
Tuesday, falling 9.7 cents to a $4.244/MMBtu settlement, as the market gave up some of Monday’s gains and
weighed slightly warmer weather forecasts into early December. In the
cash market, Northeast cash prices also reversed, while prices across
most other regions posted small gains.
While much of the eastern US remains under the grip of an arctic
THE
MARKET
Gas Daily Supplements
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Daily price survey ($/MMBtu)
NATIONAL AVERAGE PRICE: 4.490
Trans. date:
11/18
Flow date(s):
11/19
Permian Basin Area
El Paso, Permian
Waha
Transwestern, Permian
Midpoint
+/-
Absolute
Common VolumeDeals
4.270 +0.005 4.22-4.32 4.25-4.30 501
73
4.270 -0.005 4.24-4.304.26-4.29 345 54
4.280 +0.000 4.25-4.31 4.27-4.30
66
8
East Texas-North Louisiana Area
Carthage Hub
4.245
NGPL, Texok zone
4.185
Tx. Eastern, ETX
4.110
Tx. Gas, zone 1
4.280
+0.040
+0.035
-0.055
+0.070
4.24-4.26
4.17-4.21
4.11-4.11
4.17-4.30
4.24-4.25
4.18-4.20
4.11-4.11
4.25-4.30
30
653
3
243
4
86
1
38
East-Houston-Katy
Houston Ship Channel
Katy
4.295 +0.075 4.25-4.30 4.28-4.30 151
6
4.270 +0.050 4.24-4.284.26-4.28 377 27
South-Corpus Christi
Agua Dulce Hub
NGPL, STX
Tennessee, zone 0
Tx. Eastern, STX
Transco, zone 1
4.235
4.175
4.150
4.185
4.260
+0.255
+0.055
+0.030
+0.015
+0.060
4.20-4.25
4.17-4.18
4.13-4.17
4.18-4.20
4.24-4.28
4.22-4.25
4.17-4.18
4.14-4.16
4.18-4.19
4.25-4.27
43
5
88
23
52
4
2
16
6
11
Louisiana-Onshore South
ANR, La.
4.270
Columbia Gulf, La.
4.270
Columbia Gulf, mainline
4.280
Florida Gas, zone 1
4.295
Florida Gas, zone 2
4.300
Florida Gas, zone 3
4.330
Henry Hub
4.320
Southern Natural, La.
4.320
Tennessee, 500 Leg
4.295
Tennessee, 800 Leg
4.265
Tx. Eastern, WLA
4.200
Tx. Eastern, ELA
4.200
Tx. Gas, zone SL
—
Transco, zone 2
4.290
Transco, zone 3
4.315
Trunkline, WLA
4.300
Trunkline, ELA
4.260
+0.060
+0.070
+0.060
+0.050
+0.060
+0.070
+0.100
+0.065
+0.040
+0.055
+0.020
+0.005
—
+0.090
+0.055
+0.100
+0.080
4.25-4.30
4.10-4.30
4.16-4.32
4.20-4.31
4.27-4.31
4.32-4.38
4.29-4.34
4.27-4.35
4.25-4.33
4.12-4.29
4.20-4.23
4.20-4.25
——-
4.27-4.29
4.26-4.33
4.30-4.30
4.26-4.26
4.26-4.28
4.22-4.30
4.24-4.32
4.27-4.31
4.29-4.31
4.32-4.35
4.31-4.33
4.30-4.34
4.28-4.32
4.22-4.29
4.20-4.21
4.20-4.21
——-
4.29-4.29
4.30-4.33
4.30-4.30
4.26-4.26
230
234
385
64
240
548
259
109
136
298
23
16
—
4
174
3
10
42
35
52
6
7
68
35
15
27
47
7
5
—
2
31
2
1
Oklahoma
ANR, Okla.
Enable Gas, East
NGPL, Midcontinent
Oneok, Okla.
Panhandle, Tx.-Okla.
Southern Star
+0.010
+0.020
+0.025
+0.025
+0.120
+0.020
4.36-4.50
4.17-4.22
4.19-4.24
4.20-4.24
4.36-4.45
4.39-4.42
4.38-4.45
4.18-4.21
4.21-4.23
4.20-4.22
4.38-4.43
4.40-4.41
7
33
121
163
109
39
3
13
21
26
22
5
New Mexico-San Juan Basin
El Paso, Bondad
4.270 +0.010
El Paso, San Juan
4.275
-0.015
Transwestern, San Juan
4.310 +0.025
4.25-4.29 4.26-4.28
4.25-4.30 4.26-4.29
4.30-4.32 4.31-4.32
11
138
144
3
26
28
Rockies
CIG, Rockies
Kern River, Opal
Stanfield, Ore.
Questar, Rockies
Cheyenne Hub
NW, Wyo. Pool
NW, s. of Green River
White River Hub
4.42-4.49
4.40-4.50
4.40-4.45
4.33-4.42
4.48-4.54
4.41-4.45
4.30-4.35
4.40-4.43
97
451
95
41
237
93
146
54
19
67
19
7
38
16
26
6
4.410
4.195
4.220
4.210
4.405
4.405
4.460
4.440
4.420
4.385
4.510
4.435
4.345
4.410 +0.110
+0.040
+0.025
+0.005
+0.060
+0.040
+0.000
+0.025
4.44-4.48
4.42-4.47
4.41-4.43
4.36-4.41
4.50-4.53
4.43-4.45
4.33-4.35
4.40-4.42
Gas Daily
weather pattern, updated forecasts Tuesday predict temperatures will
moderate slightly in the next two weeks.
WSI scaled back the extent of cold conditions in the eastern US
during the start of December in its latest outlook. Although belownormal temperatures still are expected in the East, the updated forecast is “not as cold,” WSI noted.
“The market is just trying to find some equilibrium here,” said
Elaine Levin, president of brokerage PowerHouse. “After a strong day
yesterday, we were trying to give back some on moderating weather.”
The contract leaped 32.1 cents Monday
“Today technically was an inside day,” Levin said Tuesday. “We
were within yesterday’s highs and lows.”
The market traditionally sees high price volatility when the first
cold spells hit in late fall, said Gene McGillian, senior analyst at
Tradition Energy. “We’re seeing some elevated heating demand levels,
plus the risk of what occurred last winter is still in peoples’ minds.”
“We just don’t know yet how winter will play out,” McGillian
remarked. “This cold spell will probably last about five days and then
we’re just watching the 11-15 day forecasts.”
Traders are also keeping an eye on the possibility of early, tripledigit storage draws as a result of wintry weather this week.
While early indications are for the Energy Information
Administration to report a draw in the teens in this Thursday’s report,
predictions for next week’s release are reaching well into the triple digits.
Some Northeast cash points drop $2-plus
A strong, early withdrawal could reinforce fears about winter risk,
McGillian said.
“The market will likely figure most of this out and reach a temporary equilibrium once it sees a couple of withdrawals,” said Aaron
Calder, senior market analyst at Gelber & Associates. In the meantime, “winter pricing is swinging wildly as bullish and bearish traders
take bets as to where the eventual equilibrium will fall.”
December traded Tuesday in a range of $4.149-4.336/MMBtu.
In the spot market, Northeast prices took a step back on weakness
in the NYMEX December futures contract after rising Monday on
lower temperatures.
The cash price at Algonquin Gas Transmission citygates fell $2.12
to average in the low $8.60s as Boston was forecast to be around 35
degrees Wednesday, 15 degrees below normal.
Tennessee Gas Pipeline’s zone 6-delivered fell $2.43.
Transcontinental Gas Pipe Line zone 5 shed $1.29, while Transco
zone 6 New York gave up $2.87 as New York is forecast to be in the
low 30s Wednesday, 20 degrees below normal.
Gulf Coast prices moved higher on cooler-than-normal weather
forecasts.
The cash price at Henry Hub added about 10 cents. Katy Hub
climbed 5 cents.
In the Midcontinent, Panhandle Eastern Pipe Line saw the
region’s greatest gains, adding 12 cents.
Southern Star Central Gas Pipeline and Oklahoma Gas
Transmission’s Oneok zone each rose a couple of cents.
In downstream markets, Chicago and Detroit were both forecast
to see high temperatures in the low 30s on Wednesday, more than 15
degrees below seasonal norms.
Platts unit Bentek Energy projected Midcontinent demand would
Wednesday, November 19, 2014
Daily price survey ($/MMBtu)
Trans. date:
11/18
Flow date(s):
11/19
Midpoint
Canadian Gas
Iroquois, receipts
Niagara
NW, Can. bdr. (Sumas)
TCPL Alberta, AECO-C*
Emerson, Viking GL
Dawn, Ontario
GTN, Kingsgate
Westcoast, station 2*
+/-
Absolute
5.635
-0.550 5.25-6.07
—
—
——-
4.425 +0.000 4.38-4.45
C3.885 C+0.005 C3.83-3.91
4.740 +0.055 4.65-4.80
4.815 +0.080 4.75-4.90
4.165
-0.005 4.15-4.20
C3.760 C-0.035 C3.72-3.80
Common VolumeDeals
5.43-5.84 237
——-
—
4.41-4.44 404
C3.87-3.91 1404
4.70-4.78 212
4.78-4.85 1110
4.15-4.18 107
C3.74-3.78 206
57
—
59
143
51
134
19
45
Appalachia
Dominion, North Point
3.585
Dominion, South Point
3.685
Leidy Hub
3.000
Columbia Gas, App.
4.390
Lebanon Hub
4.645 REX, Clarington Ohio
4.650 Tennessee, zone 4-Ohio — Tennessee, zone 4-200 leg 3.880 Tennessee, zone 4-300 leg 2.605 Texas Eastern, M-2 receipts4.050 Millennium, East receipts 3.515 Transco, Leidy Line receipts2.905 -0.170
-0.140
+0.180
+0.020
+0.045
+0.200
—
+0.110
+0.040
-0.145
+0.050
+0.320
3.50-3.67
3.64-3.75
3.00-3.00
4.35-4.41
4.55-4.67
4.65-4.65
——-
3.40-4.05
2.50-2.70
3.91-4.18
3.40-3.55
2.70-3.05
3.54-3.63
3.66-3.71
3.00-3.00
4.38-4.41
4.62-4.67
4.65-4.65
——-
3.72-4.04
2.56-2.66
3.98-4.12
3.48-3.55
2.82-2.99
143
349
9
321
65
1
—
91
30
557
9
261
26
68
1
54
8
2
—
22
7
88
4
31
Mississippi-Alabama
Tx. Eastern, M-1 30-in.
Transco, zone 4
4.275
4.330
+0.030
+0.065
4.26-4.29 4.27-4.28
4.29-4.37 4.31-4.35
83
803
15
99
Others
Algonquin, receipts
El Paso, South Mainline
SoCal Gas
PG&E, South
PG&E, Malin
Alliance, into interstates
ANR, ML 7
NGPL, Amarillo receipt
Northern, Ventura
Northern, demarc
Dracut, Mass.
Tx. Eastern, M-1 24-in.
Northern Bdr., Ventura TP
Trunkline, zone 1A
4.000
4.445 4.465
4.445
4.445
4.785
4.800
4.660
4.770
4.760
7.870
4.330 4.755 4.285 -0.145
+0.025
+0.035
+0.055
+0.060
+0.000
+0.020
+0.030
+0.045
+0.050
-2.570
+0.230
+0.010
+0.060
4.00-4.00
4.44-4.45
4.42-4.51
4.43-4.46
4.40-4.49
4.74-4.83
4.76-4.85
4.62-4.68
4.73-4.80
4.75-4.77
7.00-8.25
4.33-4.33
4.73-4.80
4.26-4.31
4.00-4.00
4.44-4.45
4.44-4.49
4.44-4.45
4.42-4.47
4.76-4.81
4.78-4.82
4.65-4.68
4.75-4.79
4.76-4.77
7.56-8.18
4.33-4.33
4.74-4.77
4.27-4.30
25
73
665
98
546
506
255
30
380
79
25
8
71
234
4
11
79
19
74
35
25
9
50
10
4
1
13
35
Citygates
Chicago city-gates
4.790
Consumers city-gate
4.745
Mich Con city-gate
4.680
PG&E city-gate
4.580
Florida city-gates
—
Algonquin, city-gates
8.625
Tennessee, zone 6 del.
8.115
Tennessee, z6 (300 leg) del.— Iroquois, zone 2
6.370
Tx. Eastern, M-3
4.320
Transco, zone 5 del.
6.720
Transco, zone 6 non-N.Y. 6.345 Transco, zone 6 N.Y.
6.385 Kern River, delivered
4.610 SoCal Gas, city-gate
4.550 +0.025
+0.020
+0.010
+0.080
—
-2.120
-2.430
—
+0.005
-0.375
-1.285
-2.760
-2.865
+0.095
+0.030
4.74-4.87
4.70-4.82
4.67-4.70
4.52-4.63
——-
7.55-11.00
7.50-8.60
——-
5.55-7.00
4.24-4.50
5.00-7.35
5.00-7.00
5.25-7.00
4.58-4.64
4.53-4.56
4.76-4.82
4.72-4.78
4.67-4.69
4.55-4.61
——-
7.76-9.49
7.84-8.39
——-
6.01-6.73
4.26-4.39
6.13-7.31
5.85-6.85
5.95-6.82
4.60-4.63
4.54-4.56
864
85
232
610
—
124
117
—
194
302
239
111
154
288
564
107
16
39
75
—
36
28
—
32
46
50
27
40
42
64
*NOTE: Price in C$ per gj; C$1=US$0.8846
Volume in 000 MMBtu/day
Market coverage
More information about Platts natural gas market coverage,
including explanations of methodology and descriptions of delivery
points, is available at;
http://www.platts.com/MethodologyAndSpecifications/NaturalGas
Questions may also be directed to Patrick Badgley,
patrick.badgley@platts.com,713-658-3267.
2
Copyright © 2014 McGraw Hill Financial
Gas Daily
reach nearly 23.7 Bcf/d Tuesday, down more than 4 Bcf/d from the previous day.
Demand is expected to remain around 24 Bcf/d through Friday, more than 8
Bcf/d above the seasonal average.
Chicago citygates prices added about 2 cents. The Michigan Consolidated and
Consumers Energy citygates rose similarly.
To the west, Opal rose 4 cents, while Cheyenne Hub was up 6 cents as gas
increasingly worked its way to the Rockies Express Pipeline.
Southwest prices mainly rose despite weakness in the NYMEX and seasonal weather.
Pacific Gas & Electric citygate was up 8 cents, while Malin moved 6 cents higher.
The Southern California Gas citygate added 3 cents.
In the production regions, El Paso’s Permian Basin point was steady.
— Market Staff Reports
Gas-fired generation increases in PJM
Natural gas-fired generation increased output in PJM Interconnection
ANALYSIS in September, as lower gas prices and higher coal prices were seen
compared with September 2013, according to a compilation of data.
The average spot price for natural gas in September at the Texas Eastern
M-3 hub was down almost 39% to about $2.205/MMBtu, compared with
$3.599/MMBtu
PJM Interconnection fuel data
in September
2013, Platts data
Fuel mix
show. In contrast,
Sep 2013
Aug 2014 Sep 2014
the equivalent
price for Central
Coal
45.80%41.20% 39.70%
Nuclear 34.80%35.40% 36.40%
Appalachian coal
Natural gas
16.70%
20.90%
21.20%
in September was
Wind
1.10%0.80% 1.10%
up about 1.6 % to
Other
1.00%1.10% 1.10%
$2.642/MMBtu,
Hydro
0.60%0.60% 0.50%
compared with
Fuel on margin*
$2.60/MMBtu in
Sep 2013
Aug 2014 Sep 2014
September 2013.
Gas-fired
Coal
57.10%52.10% 55.40%
generation supNuclear 0.01%0.00% 0.00%
Natural gas
29.10%
46.00%
40.10%
plied 21.2% of
Wind
2.70%0.80% 1.50%
PJM’s power in
Other
11.09%1.10% 3.00%
September, up
Average price for natural gas and coal ($/MMBtu)
from 16.7% in
Sep 2013 Aug 2014 Sep 2014
September 2013,
according to data
Central Appalachian coal
2.600 2.756
2.642
from PJM. CoalTexas Eastern M-3 natural gas 3.599 2.336
2.205
fired generation
Average LMP for electricity ($/MWh)
supplied 39.7% in
Sep 2013 Aug 2014 Sep 2014
September, down
from 45.8% in
PJM Western Hub on-peak
41.58 39.54
40.67
September 2013.
PJM Western Hub off-peak
25.76 24.29
25.55
PJM Western Hub all-day
36.31 34.46
35.63
Nuclear power,
*Percentage of time each type of generation sets the marginal price
which
tends to be
Sources: PJM Interconnection, Monitoring Analytics and Platts
among the least
expensive in PJM,
increased its share to 36.4% in September from 34.8% in September 2013.
Judging from the 3% drop in the number of heating and cooling degree days in
Pittsburgh, which lies near the center of the PJM footprint, the weather was more
mild in September compared with September 2013.
3
Wednesday, November 19, 2014
Subscriber Note:
Following a period of feedback that ended October
24, Platts will add to its monthly bidweek listing
Transcontinental Gas Pipeline Corp., zone 5 delivered,
effective January 2, 2015.
Platts is adding the new listing on January 2,
2015, covering late December bidweek trading for
January delivery. Trading in the delivered monthly
market in Transco’s zone 5, which extends from the
Georgia/South Carolina border to the Virginia/Maryland
border, has demonstrated a level that supports a
robust pricing location. Platts already publishes daily
spot-gas prices for this location.
The new monthly location will appear in the
“Northeast” section of the “Market Center Spot Gas
Prices” table in Inside FERC’s Gas Market Report, and
Platts Natural Gas Alert pages 433 and 495. Additionally,
the new listing will appear in the “Northeast” section of
the “Market Center Bidweek Physical Basis Prices” table
in Inside FERC’s Gas Market Report.
The description for the daily spot-gas point as
published in the Platts methodology and specifications
guide is as follows:
Transco, zone 5 delivered
Deliveries from Transcontinental Gas Pipe Line
on the 30-inch, 36-inch and 42-inch lines from the
Georgia/South Carolina border to the Virginia/Maryland
border. Deliveries into Transco at the Pleasant Valley
receipt point near Fairfax, Virginia, from Dominion’s
Cove Point LNG terminal are not included.
Please send any additional comments to gas_survey_comments@platts.com and pricegroup@platts.
com. For written comments, please provide a clear
indication if comments are not intended for publication
by Platts for public viewing.
Platts will consider all comments received and will
make comments not marked as confidential available
upon request.
Subscriber note: Thanksgiving
holiday gas trading schedule
North American natural gas price information collected
Tuesday, November 25, for the Daily Price Survey to be published in the November 26 Gas Daily will be for gas flowing
Wednesday, November 26, through Sunday, November 30.
Gas price information collected Wednesday,
November 26, for the Daily Price Survey to be published in the December 1 Gas Daily will be for gas
flowing Monday, December 1.
Gas Daily will not publish Thursday, November 27, or
Friday, November 28, because of the Thanksgiving holiday.
Marketer rankings notice
Gas Daily is currently compiling data for a third quarter
2014 ranking of North American gas marketers by daily
physical wholesale volumes sold. Gas Daily staff intends to
compile the rankings from information appearing in reports
filed with the Securities and Exchange Commission.
For companies that are not publicly traded or
do not provide such data to the SEC, staff requests
quarterly gas sales volume be reported in writing, and
verified by executive personnel, no later than Monday,
December 1, 2014. Submit data and any queries to
Stephanie Seay, stephanie.seay@platts.com, phone
865-690-4319, fax 865-690-0933.
Copyright © 2014 McGraw Hill Financial
Gas Daily
The mild weather tends to diminish energy usage and peak demand in PJM.
Total energy use in PJM fell to 63.6 million MWh in September from 63.7 million
MWh in September 2013.
In such an environment, lower electricity prices are expected, and that is what
happened during September. The all-day power price at the heavily traded PJM
West Hub fell 67.4 cents to $35.63/MWh in September, compared with $31.31/
MWh in September 2013.
In terms of setting market prices in PJM, natural gas-fired generation set prices during 40.1% of September, compared with 29.1% of September 2013. Coal-fired generation set prices during 55.4% of September, compared with 57.1% of September 2013.
In contrast, oil-fired generation, which tends to be more expensive, set prices
just 2.4% of September, compared with about 8.5% of September 2013, according
to data from Monitoring Analytics, the independent market monitor for PJM.
Wind power set prices during 1.5% of September, compared with 2.7% of
September 2013, while nuclear power did not set prices in September, about the
same as the year-ago period.
— Mark Watson
SPP gas generation lowest in past five years
Lower electricity demand and higher natural gas prices drove
BENTEK
ANALYSIS gas-fired generation lower in the Southwest Power Pool this past
19
18
20
17
20
16
20
20
*
15
14
20
13
20
12
20
11
20
10
20
09
20
20
20
08
summer, while the growth of wind power in SPP had a negative
impact on gas-fired generation.
Gas-fired generation dropped 18% this summer compared to last summer, or
23 GWh/d, to an average of 126 GWh/d, the lowest level in the past five years.
Summer gas generation was 47 GWh/d less than the five-year average.
Lower temperatures
SPP Generation and Load
reduced electricity load
(MWh)
in SPP to an average of
800000
651 GWh/d, down 5% or
700000
36 GWh/d from the five600000
year average. On average,
500000
population-weighted tem400000
peratures in SPP were 1
300000
degree lower than normal
200000
from April 1 to October
100000
0
31, with the largest deviaSummer Summer Summer Summer Summer Summer
tion from normal in July,
2009
2010
2011
2012
2013
2014
when average temperaCoal
Wind
Gas
Load
tures for the month were
Source: Southwest Power Pool
more than 4 degrees
below normal. Electricity
SPP Wind Generation vs. Capacity
load in July came in 90
GWh/d less than the five(MWh/day)
450000
year average.
Generation
Capacity
Fossil fuel genera360000
tion in SPP fell from the
270000
levels seen in summer
2013, but wind gen180000
eration increased about
90000
4% to an average of 73
GWh/d. Wind power in
0
SPP was up about 84%
from the five-year aver*YTD
Source: Southwest Power Pool
age. The change in fuel
4
Wednesday, November 19, 2014
Subscriber note:
Following a period of feedback which ended
October 24, Platts will add to its daily and monthly
bidweek price surveys sub-listings for Transco zone 6,
non-New York North.
Platts is adding the new listings for the bidweek market on January 2, 2015, covering late December bidweek
trading for January delivery, and on January 3-5 for the
daily market, covering trade date January 2.
In the non-New York portion of Transco’s zone 6,
which extends from the Virginia/Maryland border to
markets south of Linden, New Jersey, price values have
bifurcated since last winter, with delivered values on the
capacity-constrained portion of the zone south of Station
195 at the Maryland/Pennsylvania border rising well
above those north of the station.
To bring more transparency to the pricing region,
Platts is adding a listing for the northern portion of
Transco’s zone 6 non-NY, which will be composed
of only transactions delivered from Transco to markets and interconnects north of Station 195 in York,
Pennsylvania, excluding deliveries in the Leidy Hub
area and to New York citygates downstream of Linden,
New Jersey.
There will be no change to the existing Platts listing for
Transco, zone 6 non-NY, which is composed of all non-NY
delivered transactions both north and south of Station 195.
Platts has considered adding a separate listing for the
southern portion of Transco zone 6 non-NY, but has opted
not to propose it at this time due to a lack of trade liquidity.
The description for the new location will be:
Transco, zone 6 non-NY North (daily and monthly survey)
Deliveries from Transcontinental Gas Pipe Line from
Station 195 in York, Pennsylvania, to the Linden, New Jersey,
compressor station and on the Leidy Line south of Clinton
County, Pennsylvania. The non-New York North point does not
include deliveries to Public Service Electric and Gas in New
Jersey, whose supply is taken downstream of Linden.
The proposed Transco, zone 6 non-NY North listings
would appear in the “Northeast” section of the “Market
Center Spot Gas Prices” table in Inside FERC’s Gas Market
Report, Energy Trader and Gas Daily Price Guide, in the
“Citygates” section of Gas Daily’s “Daily price survey”
table, and Platts Natural Gas Alert pages 433, 495 and
516. Additionally, the new listings would appear in the
“Northeast” section of the “Market Center Bidweek Physical
Basis Prices” table in Inside FERC’s Gas Market Report.
Please send any additional comments to gas_survey_comments@platts.com and pricegroup@platts.com.
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Platts Podcast
Tension eases on EU gas markets after RussiaUkraine deal
Platts Beatrice Bedeschi and Gary Hornby discuss
recent developments in the European gas markets
following the deal reached by Russia and Ukraine over
winter gas supplies.
http://plts.co/russia-ukraine-gas-111014
Copyright © 2014 McGraw Hill Financial
Gas Daily
mix shows that wind generation is becoming a major regional player and is stealing market share from marginal fuel sources. Wind-power capacity in the region
has grown an average of about 30% annually over the last five years, or about
1,000 MW per year, and wind is expected to continue growing in the region.
The interplay between renewable and fossil fuel generation will continue to
increase. About 3,700 MW of wind power capacity is being added to SPP in 2014
and another 6,000 MW will be added from 2015 through 2019.
Natural gas this past summer was the marginal fuel because of higher gas prices.
As wind power continues to grow, incremental wind capacity should start to
displace coal generation, as baseload spinning reserves will need to increase to
account for the intermittency of wind power. Gas generators also are better suited
than coal plants to balance the volatility of renewable generation.
— Bob Yu, Bentek Demand and Modeling Team
Gas-electric coordination heats up … from page 1
Kelly Daly, a partner with Stinson Leonard Street who represents a coalition
of gas and electric utilities in the Desert Southwest, on Monday urged state utility
regulators to push FERC to develop regulations encouraging firm contracting of
gas pipeline transportation, as opposed to a reliance on interruptible service.
Speaking at the National Association of Regulatory Utility Commissioners’
annual meeting in San Francisco, Daly noted that intermittent renewables could
produce up to 22% of the hourly firm load at a utility. But at any given hour that
percentage could drop to zero, requiring quick-starting gas-fired generation to
take over to meet demand, she said.
Improved gas-electric coordination will become even more crucial as the
Environmental Protection Agency’s proposed Clean Power Plan to reduce carbon
emissions from existing power plants spurs more movement to gas-fired generation on an expedited basis, as coal retirements pick up and intermittent renewable energy sources gain favor, Daly said.
The utilities in the coalition she represents are all in areas with significant
amounts of renewable resources, and each has firm transportation contracts,
including some for premium services, to satisfy their gas needs.
While these utilities “have all the contracted gas they could possibly need on
a peak day, they don’t have the ability to access that gas” because the gas industry’s nomination schedules, based on Central time, do not align with the peak
periods of demand in the Pacific time zone, Daly said.
If, for example, an electric utility nominates at the beginning of the day only
half of the gas it has uner contract, believing that wind or solar will be abundant
that day, but the sun is blocked by clouds or the wind dies down, the utility does
not have an opportunity later in the day to call upon the rest of its contracted gas
supplies to meet that evening’s peak demand, Daly said.
Another problem utilities in the Desert Southwest experience involves entities
purchasing unused capacity on a pipeline, known as secondary firm capacity, and
scheduling it for delivery to alternate points.
“If a secondary shipper comes in and nominates over the direction that our capacity is going, [then] when we need the capacity later in the day, it’s not there because
the secondary capacity has actually out-utilized ours,” Daly said, recommending that
FERC address this issue between primary basis and alternate basis firm capacity.
FERC in March proposed to change the gas pipeline scheduling timeline to
start the natural gas operating day earlier, move the timely nomination cycle later
and increase the number of intra-day nomination opportunities from two to four
to help shippers adjust to changes in demand. The new intraday nominations
would be at 8 am, 10:30 am, 4 pm and 7 pm CST, under the proposal.
The commission asked the gas and electric industries — through the North
American Energy Standards Board — to suggest revisions to the proposal, which
5
Wednesday, November 19, 2014
Transco files for 1.13 million Dt/d
Alabama expansion to feed Florida
Williams’ Transcontinental Gas Pipe Line filed an
application Tuesday with the Federal Energy Regulatory
Commission to expand its system in Alabama by 1.13
million Dt/d in order to feed the Sabal Trail pipeline
into Florida.
The Hillabee Expansion Project will add incremental
firm capacity from Transco’s Station 84 in Choctaw
County to the interconnect with Sabal in Tallapoosa
County with 43 miles of looping and a new compressor
in Choctaw County, Williams said.
The expansion project is planned for construction
in three phases and is projected to be in service by
May 2021.
Sabal Trail, a 1 Bcf/d joint venture between
Spectra Energy and Florida energy holding company
NextEra Energy, will be a 465-mile line designed to
deliver gas to NextEra’s Florida Power & Light electric
utility as well as Duke Energy Florida. The project is
scheduled to go into service in May 2017.
Sabal will lease 100% of the Hillabee expansion
capacity on Transco, Williams said.
— Bill Holland
The Barrel
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Gas Daily
NAESB submitted to FERC in September. Those revisions matched FERC’s proposal to push back the timely nomination cycle to 1 pm central time from 11:30 am,
but proposed three intraday nomination cycles instead of four with deadlines at
10 am, 2:30 pm and 7 pm CST. NAESB could not reach a consensus on the start
of the gas day so left that issue out of its proposal.
Comments on both FERC’s proposed rulemaking (RM14-2) and NAESB’s alternative proposal are due November 28.
“In the Desert Southwest, we believe we are showing you problems that you are
likely to see in the future because renewables are at such a high level for us,” Daly
told state utility regulators. “So I would encourage the state commissions to take a
hard look at the issues of firm versus interruptible capacity, and if possible write comments to the NOPR that indicate the importance of encouraging firm contracting.”
Daly said that the Desert Southwest utilities will be looking for FERC to “come
out with a policy on firm capacity that gives greater flexibility to access firm
[transportation] later in the day.”
Firm capacity contracts provide pipelines with the guaranteed revenue stream
needed to build and expand gas infrastructure. “If we have a policy that encourages
the cheaper interruptible [service] and interruptible capacity actually can be utilized
to jeopardize firm contract holders, we’re not doing ourselves any favors,” Daly said.
— Jasmin Melvin
Oil, gas execs plan to boost spending … from page 1
2012 survey. Compared to five years ago (2009), 80% of executives think the
energy situation is better, with the number thinking US energy is heading in the
wrong direction falling from 47% to 28%.
In sharp contrast to a decade ago, 90% of executives surveyed said the US has
enough affordable natural gas to meet current demand and future drivers such as
liquefied natural gas exports and petrochemical expansions.
Those same executives, 49% of which are in the exploration and production
sector, are only somewhat concerned that the shale revolution will collapse crude
prices as happened with natural gas, Deloitte said.
That outlook comes with a big caveat —
Worried about price collapse in oil? Deloitte conducted the survey in October,
before the 15% slide in global oil prices
Not sure
Not at all (2%)
Extremely
and midterm elections that featured both a
(6%)
(15%)
Republican Party sweep and the passage of a
fracking ban in Denton, Texas.
“The recent shake-ups in prices, politics
Not very
and regulations provide a compelling back(33%)
drop to evaluate the responses provided in
the survey, as the industry tests the waters
Somewhat
(44%)
with respect to shale’s resilience during a
cycle of low prices,” Deloitte’s US Oil and
Source: Deloitte
Gas Leader John England said. “Only 15%
of respondents at the time expressed that they were very or extremely concerned
about a possible price collapse.”
Asked before the downturn in crude prices, 56% of oil and gas professionals
expect their firms to spend more this year than last, but the percentage of those
surveyed expecting their companies to spend less nearly doubled from 7% in
2012 to 12% in 2014.
Deloitte speculated that the sentiment toward spending even more capital was
strong because the longer macroeconomic cycle points to increased demand from
developing countries, a demand that will only increase if commodities are cheaper.
Low oil and gas prices were also behind expectations among those surveyed
Wednesday, November 19, 2014
Georgia co-op to lean on
gas, nuclear under EPA plan
Oglethorpe Power does not expect to need additional
natural gas-fired generation capacity if the Environmental
Protection Agency implements its proposed Clean Power Plan,
but the use of existing combined-cycle units will increase, the
Georgia electric cooperative group said Tuesday.
The co-op group’s two coal-fired assets—a 1,001MW stake in the Georgia Power-run Plant Scherer and
its 532-MW stake in Plant Wansley, which is also operated by Georgia Power—are among the cleanest and
most modern in the Southeast and likely will remain in
operation under the Clean Power Plan, but may run less
frequently, Mike Smith, Oglethorpe’s president and CEO,
said during a quarterly conference call with analysts.
Smith said that instead of dispatching their units based
solely on economics, as Georgia Power and Oglethorpe do
now, the EPA proposed rule would require dispatch based
on environmental compliance. That, he said, would increase
Oglethorpe’s reliance on the gas-fired side of its generation
fleet, and raise costs for co-op members.
Oglethorpe continues to be concerned about the proposed Clean Power Plan not only because of its tilt toward
environment over economics, but because the plan would
not give Oglethorpe and the other co-owners of the two-unit,
2,234-MW nuclear expansion project at Plant Vogtle credit
for developing new, carbon-free generating capacity, and
instead would treat the units as existing. “That new nuclear
capacity should be … seen as an investment in clean, zeroemissions generation and should be treated as an accomplishment, not something that’s baked into the target” for
reducing greenhouse gas emissions, Smith said.
Oglethorpe holds a 30% ownership interest the two
existing nuclear units at Vogtle and in the two units
under construction there. Georgia Power owns a 45.7%
stake, while Municipal Electric Authority of Georgia owns
22.7% and the municipal utility in Dalton, Georgia owns
1.6%. The two units under construction are expected to
begin commercial operation in late 2017 and late 2018.
Oglethorpe executives also said during the conference call that in the first three quarters of 2014, the
capacity factors for its two coal-fired assets were considerably higher than the same period last year, partly
because of higher demand for power and partly because
of the effect of emission control projects.
Plant Scherer, which burns lower-cost Powder River Basin
coal, ran about 78% of the time in the first nine months of
2014, up from 70% in the same period last year, while the
capacity factor for Plant Wansley, which burns higher-cost
Central Appalachian coal, was 18% in the first nine months
of 2014, roughly twice the level in the same period last year.
Oglethorpe said that because of its Central Appalachian
coal fuel source, Plant Wansley is considerably more costly
to run than Plant Scherer, but was run more often than
usual in the first half of 2014 to test the effectiveness of
newly installed mercury-removal equipment.
The capacity factor for Oglethorpe’s 458-MW, natural
gas-fired Chattahoochee combined-cycle unit, in turn,
rose to 70% in the first three quarters of 2014 from 65%
in the same period last year. However, the capacity factor at Oglethorpe’s 1,240-MW, gas-fired Thomas Smith
combined-cycle unit, which sells its output to other buyers until 2016, fell slightly—from 24% in the first nine
months of 2013 to 21% in the same period this year.
Oglethorpe also holds a 689-MW stake in the two existing nuclear units at Plant Vogtle and a 527-MW stake in the
two existing nuclear units at Georgia Power’s Plant Hatch.
— Housley Carr
(continued on page 8)
6
Copyright © 2014 McGraw Hill Financial
Gas Daily
Wednesday, November 19, 2014
Basis markets mixed; Northeast points see declines as forecasts warm up
Northeastern financial basis swaps saw some big drops
Tuesday as the NYMEX stumbled, while Upper Midwest points
increased slightly.
The NYMEX December gas futures contract fell 9.7 cents to a
$4.244/MMBtu settlement as the market weighed warmer weather
forecasts in the eastern US into early next month.
Algonquin Gas Transmission citygates December basis tumbled
60 cents to plus $9.90/MMBtu, while Algonquin January 2015 basis
fell 75 cents to plus $14.10/MMBtu.
Market assessments are considered preliminary and based on
market activity on IntercontinentalExchange at 2:25 pm Eastern.
Elsewhere in the Northeast, Transcontinental Gas Pipe Line zone
6 New York December basis fell 34 cents to plus $2.72/MMBtu.
Platts unit Bentek Energy projected Northeast demand averaging around 25 Bcf/d Wednesday through Saturday, before easing
back to about 17.3 Bcf on Sunday.
Meanwhile, Northeast production plummeted Tuesday, falling
800,000 Mcf/d to 17.4 Bcf/d, Bentek said.
In Appalachia, Dominion, South Point December basis fell 9
cents to minus $1.18/MMBtu.
Upper Midwest basis prices moved in the opposite direction.
Chicago citygates December basis rose 2 cents to plus 52
cents/MMBtu.
ANR said on its website it will continue planned and unplanned
engine maintenance at compressor stations along its Southeast mainline, lowering capacity for the segment north of the Rockies Express
Pipeline interconnect in Shelby County, Indiana, by 125,000 Mcf/d to
put it at nearly 1.1 Bcf/d available through November 29.
Bentek said that generally the segment has exceeded 1.3 Bcf/d
to serve peak demand days in the MichCon area while regularly
averaging 1.1 Bcf/d during the winter season.
To the south, Houston Ship Channel December basis fell 1.25
cents to minus 5 cents/MMBtu.
Meanwhile, Florida Gas Transmission zone 3 December basis
was steady at plus 2 cents/MMBtu.
In western Canada’s production area, AECO-NIT December basis
moved up 4 cents to minus 55 cents/MMBtu. AECO January 2015
basis slipped 0.75 cent to minus 54.75 cents/MMBtu.
Northwest Pipeline-Rockies December basis inched up 0.75 cent
to minus 3.75 cents/MMBtu.
That came as Bentek said withdrawals from Rockies storage
— excluding WBI — hit new highs last week, compared with the
same period in the previous five years. Starting November 10 and
continuing through November 16, withdrawals totaled 5.98 Bcf and
peaked at 1.71 Bcf when unseasonably low temperatures hit the
region on November 12.
Downstream in California, Pacific Gas & Electric citygate
December basis slipped 0.75 cent to plus 27.5 cents/MMBtu.
Southern California Gas December basis was down a half-cent
to plus 14 cents/MMBtu, while SoCal Gas winter 2014-15 basis
came down 0.25 cent to plus 11.5 cents/MMBtu.
— Patrick Badgley
Platts M2MS Forward Curve — Natural Gas, Nov 18 (¢/MMBtu)
Prompt month: Dec 14
Transco, zone 4: Key packages, last 30 days
4.6
Transco, zone 4: Forward curve
$/MMBtu
5
December 14
Winter 14-15*
4.4
$/MMBtu
spot price, last 30 days
Summer 15
Cal 15
4.2
4
4.0
3.8
3
3.6
3.4
07-Oct
15-Oct
23-Oct
31-Oct
10-Nov
18-Nov
Transco, zone 4: Basis market vs NYMEX
4.5
2
$/MMBtu
4.3
Prompt month basis
Prompt month NYMEX
1
4.1
3.9
Cal 17
Cal 16
Cal 15
Summer 17
Winter 16-17
Summer 16
Winter 15-16
18-Nov
Winter 14-15*
10-Nov
Summer 15
31-Oct
May 15
23-Oct
April 15
15-Oct
March 15
3.5
Summer season is April-October.
07-Oct
Winter is November-March. *Balance-of-season.
February 15
3.7
January 15
0
December 14
Algonquin, city-gates
990.00
Transco, zone 6-NY
290.00
Texas Eastern, M-3
42.00
Columbia Gas, Appalachia
-10.40
Dominion, South Point
-118.00
Transco, zone 3
0.30
Transco, zone 4
0.30
Southern Natural, LA
-1.60
Tennessee, 500 Leg
-5.10
Florida Gas, zone 3
1.90
Columbia Gulf, mainline -10.70
Houston Ship Channel
-5.00
NGPL, Texok
-7.10
Chicago city-gates
51.50
MichCon city-gate
42.00
Dawn, Ontario
60.50
Panhandle, TX-Okla.
-9.30
Northern, Ventura
56.80
Northern, demarc
41.00
Waha-7.50
El Paso, Permian Basin
-7.50
El Paso, San Juan Basin
-7.00
PG&E city-gate
27.80
PG&E, Malin
3.50
SoCal Gas
14.00
Northwest, Rockies
-3.80
Northwest, Sumas
19.50
AECO, Alberta
-58.70
Table and graphs are created using Platts M2MS-Gas data. Forward assessments as basis to the Henry Hub and full values are available for periods spanning 10 years.
To see a sample and find information on how to subscribe to the full data set go to www.platts.com/risk. For more information on Platts services, please call +1-800-PLATTS8.
For editorial questions, call Mark Callahan +713-658-3211.
7
Copyright © 2014 McGraw Hill Financial
Gas Daily
Oil, gas execs … from page 6
Wednesday, November 19, 2014
NYMEX Henry Hub gas futures contract, Nov 18
for increased merger and acquisition activity in the sector, Deloitte said. Exactly
half of those surveyed thought M&A would pick up, with 43% saying they
thought the pace would be about the same.
In 2012, the survey results were roughly the same regarding the outlook for
increased merger activity, when actual M&A went into a two-year trough from
which it only now emerging.
“Given recent trends, in which M&A activity has been slightly muted versus prior
periods, we can expect to see a return to the average over time,” Deloitte said.
One-third of the executives polled thought crude oil exports from the US were
very important, and the majority thought any price increases caused by exports
would be small or nonexistent, Deloitte said.
The percentage of executives surveyed who think the industry is excessively
regulated fell by 3% in the two years between polls, to 34% this year, while 61%
thought rules were just right or evolving on the right track.
Two-thirds of the executives surveyed favored regulations requiring the disclosure of frack fluids, an increase of 3% from 2012.
Deloitte interviewed more than 250 executives with an average of 21 years of
experience in the industry.
— Bill Holland
Cold lifts US demand to new highs … from page 1
February. Average daily temperatures across the country plummeted close to 20
degrees below normal.
Regionally, gains were concentrated in the Northeast, where natural gas
demand climbed to 26 Bcf/d, which is roughly 10 Bcf/d above the previous fiveyear November average. The 26-Bcf/d mark is also just 2 Bcf/d shy of the highest
November demand level in the Northeast, which was set in November 2013.
While demand nationwide is expected to moderate on Wednesday,
Northeast demand is expected to move higher, exceeding 27 Bcf/d, before easing at the end of the week.
The recent cold weather also has caused large swings in regional gas production
as freeze-offs and maintenance events have hindered production in some regions,
Gulf Coast ethane fractionation spread
Gulf Coast E/P mix fractionation spread
E/P mix Midcontinent to Rockies fractionation spread
E/P mix Midcontinent fractionation spread
National raw NGL basket price
National composite fractionation spread
4.3
$/MMBtu+/-1.062
-0.188
-1.212
-0.150
-1.490
-0.411
-1.250
-0.326
7.418
-0.181
3.123
-0.256
+/-Volume
-9.7 164394
-7.9 94528
-6.3 26072
-3.7 41222
-4.8 35750
-4.7 14277
-4.5 3047
-4.4 2481
-4.5 1405
-4.5 1656
-4.4 5045
-3.6 1761
-3.5 997
-3.1 1341
-3.3 81
-3.2 122
-3.2 164
-3.2 88
-3.2 3
-3.2 10
-3.2 0
-3.2 13
-3.2 2
-3.1 2
-3.0 3
-2.9 0
-2.9 0
-2.9 0
-2.4 0
-2.6 0
-2.6 2
-2.6 0
-2.6 0
-2.6 0
-2.3 0
-2.3 0
Henry Hub/NYMEX spread
4.4
Shale Value Chain assessments, Nov 18
Settlement High Low
Dec 2014
4.244 4.336 4.149
Jan 2015
4.365 4.455 4.270
Feb 2015
4.333 4.410 4.232
Mar 2015
4.256 4.317 4.147
Apr 2015
3.764 3.822 3.726
May 2015
3.713 3.782 3.681
Jun 2015
3.729 3.777 3.704
Jul 2015
3.752 3.793 3.722
Aug 2015
3.761 3.810 3.731
Sep 2015
3.749 3.797 3.718
Oct 2015
3.779 3.843 3.749
Nov 2015
3.857 3.900 3.828
Dec 2015
4.028 4.066 3.995
Jan 2016
4.145 4.189 4.113
Feb 2016
4.109 4.109 4.080
Mar 2016
4.032 4.049 4.006
Apr 2016
3.790 3.800 3.790
May 2016
3.779 3.790 3.777
Jun 2016
3.800 3.816 3.800
Jul 2016
3.825 3.859 3.824
Aug 2016
3.834 3.834 3.834
Sep 2016
3.819 3.819 3.819
Oct 2016
3.843 3.843 3.843
Nov 2016
3.914 3.921 3.914
Dec 2016
4.067 4.067 4.067
Jan 2017
4.200 4.220 4.200
Feb 2017
4.178 4.178 4.178
Mar 2017
4.116 4.116 4.116
Apr 2017
3.891 3.891 3.891
May 2017
3.886 3.886 3.886
Jun 2017
3.914 3.914 3.914
Jul 2017
3.947 3.947 3.947
Aug 2017
3.958 3.958 3.958
Sep 2017
3.948 3.948 3.948
Oct 2017
3.972 3.886 3.886
Nov 2017
4.051 4.051 4.051
Contract data for Monday
Volume of contracts traded: 394,482
Front-months open interest:
Dec, 71,679 ; Jan, 271,304; Feb, 73.721
Total open interest: 974,497
Data is provided by a third-party vendor
and is accurate as of 5:30 pm Eastern time.
($/MMBtu)
Henry Hub cash price
NYMEX front month close
4.2
4.1
4.0
3.9
The methodology for these assessments is available at:
www.platts.com/IM.Platts.Content/MethodologyReferences/MethodologySpecs/shale-value-chain.pdf
12-Nov
13-Nov
14-Nov
17-Nov
18-Nov
Platts oil prices, Nov 18
Natural gas hub flow, Nov 18
Hub Name
Gulf Coast spot
1% Resid (1)
3% Resid (1)
66.80-66.82
61.29-61.31
10.69
9.81
Crude spot
WTI (Dec) (2)
74.44-74.46
12.84
New York spot
No.2 (1)
0.3% Resid LP (3)
0.3% Resid HP (3)
0.7% Resid (3)
1% Resid (3)
92.51-92.55
81.87-81.89
79.47-79.49
67.33-67.35
63.83-63.85
14.80
13.10
12.72
10.77
10.21
Scheduled
+/-
%
Daily
—31 Day Average—
Flow Change PriceFlow Price
ANR, La.
Florida city-gates
Iroquois, receipts
Kern River, Opal plant
Northern, Ventura
Northern, demarc
Northwest, Can. bdr. (Sumas)
PG&E, Malin
Stanfield, Ore.
Transco, zone 3
Transco, zone 6 N.Y.
202
1,426
1,149
461
1,499
1,457
964
871
0
1,458
1,967
-25
217
539
52
-27
-192
-8
58
-23
36
316
-11.22
17.99
88.45
12.86
-1.75
-11.63
-0.86
7.09
-99.76
2.52
19.16
4.210
4.635
6.185
4.400
4.725
4.710
4.425
4.385
4.395
4.260
9.250
203
1,172
409
450
1,318
1,351
1,062
1,093
2
1,003
1,475
3.754
4.138
4.017
3.695
3.928
3.931
3.604
3.751
3.644
3.787
3.191
($/b)($/MMBtu)
1= barge delivery; 2= pipeline delivery; 3= cargo delivery
Volumes in 000 MMBtu; prices in $/MMBtu. For more information, contact Bill Murphy at 720-264-6699.
Source: Platts data
8
Copyright © 2014 McGraw Hill Financial
Gas Daily
while several pipeline expansions have led to slow production gains in the Northeast.
On November 14, Northeast production touched 18.3 Bcf/d, its highest level on
record. Northeast production has faced outages due to maintenance, but no freeze-off
have been reported in the region so far this season.
Northeast supply growth has been supported by increasing production volumes
on the Columbia Gas Transmission system in West Virginia, the site of Columbia Gas’
West Side expansion. That
expansion has prompted
NE Production vs. Demand
an increase in Columbia
(Bcf/d)
30
Gas deliveries to Columbia
Production
Gulf Transmission at Leach,
25
Demand
Kentucky, allowing more
20
production from Columbia
15
Gas to leave the pipeline-con10
strained Northeast and find a
home in downstream demand
5
markets in the Southeast.
0
1-Oct
9-Oct
19-Oct
29-Oct
8-Nov
18-Nov
Columbia Gas deliveries
Source: Bentek
to Columbia Gulf touched
120,000 Mcf/d on November
17, the highest level since the expansion began service on November 1.
However, in other regions, such as the Rockies, Texas and Southeast, natural gas
production remains suppressed, due to cold weather that has induced freeze-offs.
Since November 11, Bentek estimates the cumulative impact from freeze-off curtailments is 10 Bcf, or roughly 1.2 Bcf/d of outages, with Rockies basins accounting
for half of the decrease in production. Bentek’s sample in the Anadarko and Permian
accounts for a curtailment of 2.5 Bcf. The sample in Southeast/Texas plays, such as the
Fayetteville and East Texas, also accounts for a curtailment of 2.5 Bcf.
Rockies production is starting to recover from the freeze, as Green River and San
Juan production each rebounded 0.1 Bcf/d on Tuesday, while the Anadarko Basin
also increased marginally.
Warmer temperatures this week are expected to bring production back online in
most of these areas. However, roughly 0.2-0.3 Bcf/d of production in the Rockies will
likely remain offline until April, which is typical during winter months.
— Luke Jackson, Bentek
GAS DAILY
Wednesday, November 19, 2014
Pro-energy bills face tough
opposition next year: Fuller
Even though many pro-energy development
candidates were elected to Congress in November,
the energy industry still faces difficult battles in
the coming year, an official with the Independent
Petroleum Association of America said Tuesday.
“Legislatively I think we will see a fairly
tough path for legislation, despite the fact that
Republicans control” both the the House of
Representatives and Senate, said IPAA Executive
Vice President Lee Fuller.
Hard feelings between many Republicans
and Democrats that have hindered passage
of bills in previous years “will come back,” he
said. While the Republicans control the House of
Representatives, they don’t have enough votes in
the Senate to block any Democrat filibusters of
legislation they oppose, he noted.
Speaking before the Natural Gas Roundtable in
Washington, Fuller said his group will be focused
on tax-related issues. The tax bills that have been
passed this year “would lower tax rates,” and
“sound good to many people.”
On another matter, Fuller said the US Fish and
Wildlife Service will be making decisions over the next
five years on whether 500 species of animals are
endangered and deserve protection from development.
Those decisions “could take vast swaths” of land out
of consideration for oil and gas drilling, he said.
He also predicted the energy industry will
face more opposition at the local level to the
use of hydraulic fracturing. The change in tactics
has been prompted by the failure of anti-fracking
groups to win passage of bills at the federal and
state level that would ban or greatly restrict the
use of fracking, he noted.
Environmentalists persuaded voters in Denton,
Texas, and Athens, Ohio, to ban drilling. Similar
referendums were defeated in Youngstown, Ohio,
and Santa Barbara County, California.
— Rodney White
Volume 31 / Issue 224 / Wednesday, November 19, 2014
ISSN: 0885-5935
Senior Editor
Stephanie Seay
865-690-4319
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