Natural Gas News – March 22, 2019
Pennsylvania As The New Natural Gas Giant
Pennsylvania As The New Natural Gas Giant— Forbes reported: uietly for much of the country, coal legend Pennsylvania has become the second most vital natural gas state. At over 18 Bcf/ d, Pennsylvania now yields over 20% of all U.S. gas, only behind Texas’ 22 Bcf/d. In the 10 years since a shale revolution took flight in its Marcellus play, Pennsylvania’s gas output has exploded 32-fold. Over that time, Pennsylvania has been responsible for 6 Tcf of the entire nation’s 11.6 Tcf of new gas supply. With so much gas being produced and transacted in the region, some have even suggested that Dominion South hub 40 miles northeast of Pittsburgh should become the new benchmark for U.S. gas prices, taking over for Henry Hub in Louisiana. For its own part, with massive low cost local supply, Pennsylvania has been turning more to natural gas to meet energy demand.
Change In Gas Allocation Policy Key Risk To Profitability Of City Gas Entities: ICRA
Business Standards reports: With softer gas prices propping up CNG and piped cooking gas consumption, city gas distribution (CGD) entities will continue to see robust margins but any adverse change in the policy of gas allocation is a key risk for the industry’s profitability, ratings agency ICRA said. The volume consumption of compressed natural gas (CNG) by automobiles and piped natural gas (PNG) in domestic kitchens has been witnessing an increasing trend, supported by softer gas prices in the last 2-3 years, ICRA said in a statement on a report it has prepared on the domestic CGD sector. “Going forward, demand growth favours CGD entities over the next decade and their margins are expected to remain healthy,” ICRA Senior Vice President K Ravichandran said. Economics, he said, are favourable for CNG, with piped natural gas for industrial use (PNG-industrial) may be marginally profitable.