Nat Gas News May 12, 2017
Nat Gas News – May 12, 2017
In the News
Cheap Natural Gas Poised to Roil PJM Power Market
Power Mag reports: The flood of cheap Marcellus Shale gas driving massive construction of new natural gas power generation capacity could wreak havoc in the PJM power market, Moody’s Investors Service suggests in a new report. Two of the nation’s largest power markets, Texas and California, already pose a “distressed environment” for unregulated power companies owing to declining market prices, the credit ratings agency said. Now, a glut of new gas generation in PJM—where new plants are expected to add up to 100 TWh, boosting gas power capacity 25%, by 2021—is poised to increase supply “amid little prospect of growth in demand,” it said. Starting in 2021, on-peak prices could plummet by $7/MWh or $3.5/MWh on an around-the-clock basis, which represent declines of between 10% and 15%, the report forecasts. For more on this story visit powermag.com or click http://bit.ly/2q6Hyuu
Natural-gas prices gain on potential Marcellus pipeline delay
Star Telegram reports: U.S. natural-gas futures surged after federal regulators limited construction on a pipeline, a move that may delay new Appalachian supplies from reaching the market. Dallas -based Energy Transfer Partners is barred from new drilling along some segments of its $4.2 billion Rover pipeline, the Federal Energy Regulatory Commission said in an order posted Wednesday. The move follows a request by Ohio regulators to review spills of drilling fluid and other environmental violations related to construction of the line. Ohio has fined Energy Transfer $431,000 for those violations. “The market is really focused on the Rover expansion and the market took the order that came out earlier today in a very bullish way,” said Kyle Cooper, director of research at IAF Advisors in Houston. For more visit star-telegram.com or click the following link http://bit.ly/2q9HibS
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