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

 

 

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

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