Natural Gas News – July 2, 2018
The Biggest Risk for Natural Gas Markets
Oil Price reported: Natural gas inventories in the U.S. are at their lowest level since 2014 for this time of year, raising the possibility that the country enters the winter drawdown season with very few buffers that could prevent a price spike. The natural gas market is highly seasonal, with inventories drawing down sharply in winter months, roughly November through March, while stocks build up in the late spring through early fall just in time for the next winter. Obviously, the exact pace of drawdown or replenishment depends on a lot of factors, including the swings in seasonal temperatures and the rate of production from shale gas drillers. A few mild winters led to a glut of supply in 2015 and 2016, keeping prices subdued. In early 2016, for instance, Henry Hub traded below $2 per million btu (MMBtu). This past winter, however, the market flipped, with extreme temperatures leading to a massive drawdown in inventories. On January 1, 2018, the U.S. consumed an all-time record high at 150.7 billion cubic feet, surpassing the previous record hit during the polar vortex in 2014. For more on this story visit oilprice.com or click https://bit.ly/2MJ1knV
How Will Interstate Natural Gas Pipeline Certification Change?
Power Magazine reported: The Federal Energy Regulatory Commission (FERC) on April 19 issued a Notice of Inquiry (NOI) to seek stakeholder input on how the agency should revise its 1999 Certificate Policy Statement regarding the review and certification of interstate natural gas pipelines. FERC reviews applications for natural gas pipeline construction and operation under Section 7 of the Natural Gas Act, which mandates a “certificate of public convenience and necessity” be issued for such projects. The NOI followed the December 21, 2017, announcement by FERC Chairman Kevin McIntyre stating that “much has changed in the energy world since 1999, and it is incumbent upon [the commission] to take another look at the way in which we assess the value and viability of our pipeline applications.” For more on this story visit powermag.com or click https://bit.ly/2KoZoE9