Nat Gas News – May 31, 2017

Nat Gas News – May 31, 2017

In the News

DCP Midstream Announces Additional Large Scale Expansion of Sand Hills Natural Gas Liquids Pipeline

DCP Midstream, LP (NYSE:DCP) today announced an additional large scale expansion of the Sand Hills natural gas liquids (NGL) pipeline, with plans to initially spend $105 million towards long-lead equipment and right-of-way. The expansion announced today is in addition to the Sand Hills Pipeline’s existing expansion to 365 MBpd, which is on target to be in service in the fourth quarter of this year. This existing expansion adds three additional pump stations and a lateral to primarily increase Permian capacity. The expansion to 365 MBpd is backed by long-term, third party plant dedications. Additionally, multiple new supply connectors are in progress and will deliver incremental NGL volumes in 2017 and beyond. Proceeds from DCP’s recent divestiture of its non-core Douglas, Wyoming natural gas gathering system will be deployed to partially fund the initial phase of this additional strategic expansion, which will provide strong, accretive, fee-based returns at lower risk. For more visit nasdaq.com or click http://bit.ly/2rllPQ1

NYMEX July gas slumps on bearish temperature outlook

Platts reports: The NYMEX July natural gas futures contract slumped Tuesday as cooler-than-average temperatures are expected over the next 10 days throughout much of the central and northeastern US, which contrasts with the most recent three-month temperature outlook from the weather service, which forecast a warmer-than-average summer for much of the US. Producers, who are using swaps to hedge their forward volume projections, have pushed open interest to their highest levels in three years. These open interest positions could put pressure on the forward curve unless the money manager and merchant sectors increase their size, as “producers continue the hedging functions,” according to Energy GPS. For more visit platts.com or click the following link http://bit.ly/2r8ClSY

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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