Natural Gas News – March 29, 2018

Natural Gas News – March 29, 2018

Why Natural Gas Prices Will Rise This Summer

Oilprice.com reported: Record production of natural gas is snuffing out any price rally that might have occurred from the bout of cold weather this winter. The gas market saw a jolt at the end of December and in early January due to extremely cold temperatures across much of the U.S. This winter was about 13 percent colder than last year, which pushed up residential and commercial gas demand by 3.5 billion cubic feet per day (Bcf/d), according to Barclays. At the same time, demand continues to grind higher on a structural basis, with more LNG exports leaving U.S. shores and more utilities burning gas for electricity. That led to a sharp drawdown in gas inventories, pushing them 16 percent below the fiveyear average in the first quarter. Nevertheless, the price impact was muted. In the past, sever cold snaps have led to sharp price spikes. While that happened in regional spot markets, the price increases were very short-term and nothing like the price increases during the 2014 Polar Vortex. After the cold subsided, Henry Hub spot prices fell back below $3/MMBtu. For more on this story visit oilprice.com or click http://bit.ly/2GBmrJg

Duke Energy Turns To A New Source Of Natural Gas: NC Hogs

WFAE 90.7 reported: Duke Energy last week began generating electricity in eastern North Carolina with natural gas from a new source: hog waste. It helps Duke meet a state mandate, while benefiting farmers, too. The hogs starring in this new role are at five farms in Duplin County, east of Fayetteville. Waste is flushed into an underground tank called a digester, which captures methane gas. Pipes carry that to a bio-waste converter, where it’s processed into pipeline-quality gas. rom there, it’s fed through a Piedmont Natural Gas pipeline to a Richmond County power plant For more visit wfae.org or click http://bit.ly/2pQcVbu