Natural Gas News – April 4, 2019
Natural Gas News – April 4, 2019
Texas Natural Gas Prices Plunge To All-Time Low
Oil Price reported: Natural gas prices at the Waha hub in West Texas plummeted to record low negative levels on Wednesday, as pipeline constraints and problems at compressor stations at one pipeline stranded gas produced in the most prolific U.S. shale oil basin. Real-time or next-day prices at the Waha hub in Texas have stayed at negative levels since March 22, so drillers have had to pay companies with capacity to ship the gas via pipeline. On Wednesday, the spot Waha hub prices plunged to minus $3.38 per million British thermal units (MMBtu), from minus 2 cents for Tuesday, data from the Intercontinental Exchange (ICE), cited by Reuters, showed. Adding to the chronic pipeline constraints for both oil and gas in the Permian basin, last month equipment failures at two compressor stations along the El Paso Natural Gas Pipeline in New Mexico resulted in El Paso declaring a force majeure and reducing the takeaway capacity of the pipeline. For more on this story visit oilprice.com or click https://bit.ly/2K2SQv1
Column: U.S. Natural Gas Prices Unmoved By Colder Winter, Low
Reuters reported: U.S. natural gas prices remain mired below $3 per million British thermal units despite a relatively cold winter that has left the volume of gas in storage well below normal for the time of year. Futures prices for natural gas delivered to Henry Hub in June 2019 are just over $2.70 per million BTUs, down from $2.90 in the middle of March, and have remained well below $3 throughout the last two years. Gas prices have remained relatively low even though a much colder winter in 2018/19 than in the previous three years pushed up consumption sharply and depleted inventories. Working stocks in underground storage fell to 1,107 billion cubic feet by March 22, 21 percent below the yearearlier level and 33 percent under the prior five-year seasonal average. For more on this story visit ukreuters.com or click https://reut.rs/2CZmhIw
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