July 28, 2022

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Gas Markets

Market Watch

The September gas futures contract plunged 42¢ Thursday to settle at $8.134 per million Btu on its first day in the prompt month position. The move was counterintuitive as it came in the wake of very bullish storage data. However, traders elected to focus instead on the potential for growing production and possible LNG outages from tropical storms to temper bullish sentiment. The 12-month strip averaged $6.688 with September in the lead position; the 2023 calendar strip was down 15.2¢ to $5.656 (Futures contracts).

WTI September crude fell 84¢ to $96.42/bbl.

* * *

The Energy Information Administration reported a 15 Bcf build for the week ended Jul. 22, increasing net working gas inventories to 2,416 Bcf. The injection compares with a year-ago build of 38 Bcf and a five-year average build of 32 Bcf, and was 7 Bcf below analysts' consensus expectations. Inventories climbed to 345 Bcf, or 12.5% below the five-year average. The deficit to last year increased to 293 Bcf, or 10.8%. Next week's data is expected to show a 30 Bcf injection versus a five-year average of 33 Bcf (Storage).

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The Pacific Northwest border crossing at Sumas, Washington, saw the most significant price move of the day, falling $1.31 to $6.59. In Canada, Alberta benchmark Aeco rose 15¢ to $5.00. This compared to benchmark Henry Hub cash prices that were down 1¢ at $8.66. In the Northeast, Transco zone 6 New York went down 32¢ to average $7.70, while Boston-area Algonquin declined 56¢ to average $7.74. In West Texas, cash prices at the Permian's Waha Hub fell 8¢ to average $7.87. Meanwhile, Rockies leader Kern/Opal fell 18¢ to $8.06 and the SoCal Citygate declined 42¢ to average $8.59 (Daily cash prices).

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Howard Energy Partners and joint venture partner Eagle Ford Midstream will double capacity on their South Texas Dos Caminos natural gas system from 1 billion to 2 billion cubic feet per day to accommodate increasing gas production in the region’s Austin Chalk and Eagle Ford plays. Most notably, this is the site of EOG Resources' emerging dry gas Dorodo play, where it plans to drill 30 wells this year. Output reached 140 million cubic feet per day in the first quarter, twice what it produced a year earlier. The initial phase of the project, which will involve enhancements to the existing system and adding greenfield pipeline, will be completed in the third quarter of 2023 and the remainder in 2024, HEP said in a statement.

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Diversified Energy is buying ConocoPhillips' interest in about 1,500 aging natural gas wells in Oklahoma and the northern Texas Panhandle in a deal valued at $240 million. The Birmingham, Alabama-based firm specializes in purchasing low-volume but long-lived gas production and is one of the largest operators in the Marcellus Shale. The firm more recently began to buy aging assets in Texas, Louisiana and Oklahoma in what it dubbed its Central Region. The 250,000 acres being bought from ConocoPhillips produce roughly 52 million cubic feet of gas equivalent per day (90% gas) and add 186 billion cubic feet equivalent of net proved developed producing reserves to Diversified’s portfolio.
Tom Haywood, Houston and Everett Wheeler, Washington

Natural Gas Spot Prices

Top 5 Upward & Downward Price Movements
EmersonSonatEmpressAECOWestcoast Station 2Col. Gulf - RayneTransco Station 65Transco Zone 5Transco Zone 4NW Sumas-15%-10%-5%0%5%10%15%EmersonSonatEmpressAECOWestcoast Station 2Col. Gulf - RayneTransco Station 65Transco Zone 5Transco Zone 4NW Sumas
Note: Jul 28' 22 versus prior day price: points moving up (6), down (66).
Natural Gas Spot Prices
Trade Date: Jul. 28, 2022 / Flow Dates: Jul. 29-31, 2022
The above figures refer to volume-weighted averages for gas deals done today for tomorrow's flow, or weekend delivery on Friday trading, at each particular spot. Change reflects the difference from the previous published price. Composites reflect volume-weighted average for all deals done in the regional grouping. Daily Composite Spot Wellhead is a volume-weighted average for all producing area pipelines less gathering and processing costs. All prices are in $/MMBtu.

Critical Notices

Sort:
Count of Critical Notices in Last 7 Days
Algonquin GasTransmissionColumbia GasTransmissionEl Paso NaturalGasKern River GasTransmissionCo.Natural GasPipeline Co.NorthwestPipelineNOVA GasTransmissionLtdPanhandleEasternPipeline Co.Tennessee GasPipeline Co.Texas EasternTransmissionTranscoTranswesternPipelineCompany, LLC0510152025303540455055Algonquin GasTransmissionColumbia GasTransmissionEl Paso NaturalGasKern River GasTransmissionCo.Natural GasPipeline Co.NorthwestPipelineNOVA GasTransmissionLtdPanhandleEasternPipeline Co.Tennessee GasPipeline Co.Texas EasternTransmissionTranscoTranswesternPipelineCompany, LLC
Critical Notices

Natural Gas Futures

Nymex Henry Hub Future Price Curves
Jul 28, '22
Sep'22Oct'22Nov'22Dec'22Jan'23Feb'23Mar'23Apr'23May'23Jun'23Jul'23Aug'23($/MMBtu)44.555.566.577.588.5Sep'22Oct'22Nov'22Dec'22Jan'23Feb'23Mar'23Apr'23May'23Jun'23Jul'23Aug'23CurrentLast Month
Henry Hub
Change from prior day, Jul 27 '22

Storage Report

North American Natural Gas Storage
Jul 28, '22
51%63%53%Lower 48CanadaLower 48 & Canada(BCF)050010001500200025003000350040004500500055006000Lower 48CanadaLower 48 & Canada
Note: The value shown in the bars represents the percentage full.
North American Weekly Gas Storage
Sources: US-EIA. Canada-RBN Energy. Values in Bcf unless otherwise noted.


Related Markets

Comparative Fuels

Comparative Fuels
Prices for Jul 28 '22

Spot Cash Electricity Prices

Spot Cash Electricity Prices
Today's prices as of Jul 27 '22

Gas Needed to Replace Offline Nuclear Capacity

Gas Needed to Replace Off Line Nuclear Capacity
585585562547613346303304333Jul 20Jul 21Jul 22Jul 23Jul 24Jul 25Jul 26Jul 27Jul 28(MMcf/d)02004006008001000120014001600Jul 20Jul 21Jul 22Jul 23Jul 24Jul 25Jul 26Jul 27Jul 28NortheastSoutheastTexasUpper MidwestWestTotalYear-Ago
Note: Source: US Nuclear Regulatory Commission's Daily Power Reactor Status Report and Energy Intelligence,Historical data available via EI New Energy Data

Gas Prices, Power Prices and Spark Spreads for Major Hubs

Marginal Heat Rates (Btu/kWh)
21 Jul 2222 Jul 2223 Jul 2224 Jul 2225 Jul 2226 Jul 2227 Jul 225000100001500020000250003000035000400004500021 Jul 2222 Jul 2223 Jul 2224 Jul 2225 Jul 2226 Jul 2227 Jul 22Malin/COBSocal/Palo VerdeAlgonquin/NE PoolHouston SC - Katy/ErcotStanfield/Mid-Col.TZ6 NNY/PJM W
Note: Indicates the threshold heat rate for each gas/power pair. Below the MHR, gas-fired generation may be more cost effective vs. purchased power above. For holidays and weekends, the previous business day's values are displayed.
Gas, Power Prices & Spark Spreads for Generators Major Hubs

Renewable Energy

Gas Equivalent of Caiso Wind and Solar Output
19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25 Jul26 Jul27 Jul(MW)01000200030004000500060007000800090001000011000(MMcf/d)120014001600180020002200240019 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25 Jul26 Jul27 JulCAISO Solar PVCAISO Solar ThermalCAISO WindTOTAL gas equivalent (MMcf/d)TOTAL gas equivalent (MMcf/d) - Last Year
Note: Historical data available via EI New Energy Data
Note: Historical data available via EI New Energy Data



Gas Equivalent of Ercot Wind Output
18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25 Jul26 Jul27 Jul(MW)020004000600080001000012000140001600018000(MMcf/d)50010001500200025003000350018 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25 Jul26 Jul27 JulWind Generation (MW)Gas equivalent (MMcf/d)Gas equivalent (MMcf/d) - Last Year
Note: Historical data available via EI New Energy Data
Note: Historical data available via EI New Energy Data



Gas Equivalent of PJM Renewable Output
18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25 Jul26 Jul27 Jul(MW)0100020003000400050006000700080009000(MMcf/d)80010001200140016001800200018 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25 Jul26 Jul27 JulPJM SolarPJM HydroPJM WindPJM Other RenewablesTOTAL gas equivalent (MMcf/d)TOTAL gas equivalent (MMcf/d) - Last Year
Note: Historical data available via EI New Energy Data
Note: Historical data available via EI New Energy Data




Weather

Today's Short-Term Weather Forecast

Atlanta
Austin
Denver
Detroit
Las Vegas
Los Angeles
Minneapolis
Nashville
Philadelphia
Seattle
Washington
Boston
Orlando
New York
Leaflet | Weather from OpenWeatherMap
To change the layers on the map, click the icon to the left and choose the layer you want to display.
Layers available on weather map:
  • Temperature:
    Current ground temperature(in Fahrenheit).
  • Clouds:
    Displays the positions of the current cloud cover.
  • Precipitation:
    Displays current amount of falling water in liquid, sleet or snow form (in inches).
  • Wind speed:
    Displays the current wind speed(in knots).
  • Sea Level Pressure:
    Displays the current pressure at sea level(in millibars).
  • Snow:
    Displays the daily snow fall(in inches).
  • Rain:
    Displays today’s amount of rain fall(in inches).

Degree Days

Degree Days
24923923521319020619620022 July23 July24 July25 July26 July27 July28 July29 July02040608010012014016018020022024026022 July23 July24 July25 July26 July27 July28 July29 JulyCDDHDDCDD AvgHDD Avg
Note: Cooling Degree Days is the sum of temperature variances above 65 degrees for 14 cities: Atlanta, Georgia, Austin, Texas, Denver, Colorado, Detroit, Michigan, Las Vegas, Nevada, Los Angeles, California, Minneapolis, Minnesota, Nashville, Tenn, Philadelphia, Pennsylvania, Seattle, Washington, Washington, DC, Boston, Massachusetts, Orlando, Florida, New York, New York. Heating Degree Days is the sum of temperature variances below 65 degrees for those same 14 cities.
Degree Days


Regional °F Degree Day Differentials
Values listed are the previous days' difference from the 5-year degree day average.

Ex: A value of -4° indicates previous days' degree days were 4 degrees below the 5-year average.

Northeast US
New York 2°
Orlando 2°
Boston 1°
Washington 1°
Seattle 8°
Philadelphia 3°
Nashville 1°
Minneapolis -6°
Los Angeles -3°
Las Vegas -4°
Detroit 1°
Denver -7°
Austin 0°
Atlanta 1°
Southeast US
New York 2°
Orlando 2°
Boston 1°
Washington 1°
Seattle 8°
Philadelphia 3°
Nashville 1°
Minneapolis -6°
Los Angeles -3°
Las Vegas -4°
Detroit 1°
Denver -7°
Austin 0°
Atlanta 1°

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