Natural Gas News – January 3, 2019

Natural Gas News – January 3, 2019

Rising Natural Gas Prices Push Coal Volume to High Mark

Railway Age reported: For the week ending December 22, rail traffic was 567,252 carloads and intermodal units, up 4.2% compared with the same week in 2017. Volume totaled 277,111 carloads, up 3.1%, while intermodal was 290,141 containers and trailers, up 5.3%. Six of the 10 carload commodity groups tracked by AAR were better on-year. Coal, the single-largest category and a recent gainer, added 4,039 carloads, to 93,964, the most since Sept. 1, 2017. Coal producers saw their highest output since August 2017, at 15.9 million short tons. Natural gas, which had been averaging about $3 per million British thermal units (BTU) in 2017, climbed above $4.80 in November and ranged between $3.50 and $4.50 in December. Other gainers included petroleum and petroleum products, 2,019 carloads, to 13,401, and chemicals, 1,908 carloads, to 35,032. For more on this story visit railwayage.com or click https://bit.ly/2CM35yr

SoCalGas Extends Natural Gas Conservation Request During Cold Snap

Reuters reported: Southern California Gas Co (SoCalGas) extended its request to consumers to cut back on their natural gas use through Friday to avoid straining the utility’s system as cold weather blankets parts of its service area: In addition to asking homes and businesses to reduce gas use, SoCalGas, a unit of California energy company Sempra Energy , also extended a systemwide voluntary curtailment notice to electric generators from Wednesday through Thursday and Friday. Gas supplies are expected to remain tight in Southern California this winter due to limitations on several SoCalGas pipelines and reduced availability of the utility’s biggest storage field at Aliso Canyon in Los Angeles, following a massive leak between October 2015 and February 2016. State agencies forecast SoCalGas’ pipelines and storage facilities could send out up to 4.1 billion cubic feet per day (bcfd) this winter before the utility would have to tap Aliso Canyon, according to a report in October. For more on this story visit reuters.com or click https://reut.rs/2CNJe1N

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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