Natural Gas News – June 8, 2018
Natural Gas News – June 8, 2018
Columbia Gas Force Majeure Upends Appalachia Natural Gas Prices
Platts reported: A pipeline rupture and explosion early Thursday morning in Marshall County, West Virginia on Trans- Canada’s Columbia Gas Transmission system caused a force majeure on the pipeline’s Leach XPress. The outage has a number of implications for prices, flows, and production. There is no timeline for a return to service. In Thursday trading Columbia Gas, Appalachia saw an 11-cent climb to $2.77/MMBtu, according to Platts preliminary pricing data. Meanwhile, Tetco M-2 fell 21 cents and Dominion South Point dropped 26 cents. This is the first time in seven trading sessions that Columbia Gas, Appalachia has moved opposite of both Tetco M-2 and Dominion South. Balanceof- the-month prices could also see opposite movement for Columbia Gas, Appalachia versus Tetco M-2 and Dominion South. For gas day Friday and until further notice the affected section’s capacity was set to zero. For more on this story visit platts.com or click https://bit.ly/2kW6ZuL
Gas Glut in West Texas Sparks a Quandary: How Much of It Should Be Burned Off?
Los Angeles Times reported: Texas is facing a burning question that’s pitting the state’s economy against its environment, and oil drillers against each other. With natural gas pipelines in the Permian Basin reaching 98% of capacity, Texas is weighing whether to keep intact or loosen strict state regulations that limit flaring, the process used by drillers to burn off excess gas pumped up along with their oil. Now the limit for individual wells is 45 days. After that, without a rare-granted exemption, the gas must be piped away or the well must close. Shut wells mean less revenue for companies and the state, at a time when oil prices and production are surging while regional gas prices are in a tailspin. For more on this story visit latimes.com or click https://lat.ms/2Hw4bgW
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