September 6, 2022

WWW.ENERGYINTEL.COM

Gas Markets

Market Watch

October natural gas futures plunged another 64.1¢ on Monday to settle at $8.145 per million Btu as bearish production data emerged over the Labor Day weekend. US dry gas production reached a new record of 99 billion cubic feet per day, up 6 Bcf/d year over year, Gelber & Associates analysts said. “ After multiple weeks of dry gas production oscillating between roughly 96 Bcf/d and 97.5 Bcf/d due to daily pipeline maintenance work this summer, it appears that dry gas production has finally been able to trend higher in the past three weeks,” they said. The 12-month strip fell 38.9¢ to $6.849; the 2023 calendar strip was off 27.2¢ to $6.272 (Futures contracts).

WTI October crude futures inched up a penny to settle at $86.88 per barrel.


* * *

Westcoast Station 2 saw the most significant price move of the day, falling 32¢ to $-0.43. This compared to benchmark Henry Hub cash prices that were down 43¢ at $8.48. In the Northeast, Boston-area Algonquin advanced 5¢ to average $7.99. In West Texas, cash prices at the Permian's Waha Hub fell 80¢ to average $7.30. Meanwhile, Rockies leader Kern/Opal fell 50¢ to $8.01, SoCal Citygate advanced 10¢ to average $13.51 and Northwest Sumas lost 51¢ to average $8.10. In Canada, Alberta benchmark Aeco rose 1.75 to $3.01. (Daily cash prices).


* * *

EQT Corp., the US’ largest natural gas producer, said Tuesday it is expanding its Appalachian footprint through the acquisition of acreage and gathering infrastructure spanning Marshall and Wetzel Counties in West Virginia. The deal to acquire privately-held THQ Appalachia I LLC (THQ) — a producer backed by Fort Worth-based Tug Hill Operating and Houston-based Quantum Energy Partners — as well as Tug Hill’s XcL Midstream (XcL) gathering system is valued at about $5.2 billion. THQ’s gas-equivalent production is roughly 800 million cubic feet per day, which would bring EQT's production to between 5.96 and 6.50 Bcf/d based on guidance EQT issued for the third quarter. That gas would flow through XcL’s gathering system, which sits at the nexus of every major long-haul interstate pipeline in Southwest Appalachia.

* * *
Devon Energy is splashing into the floating LNG space through a partnership with Delfin Midstream that would see it invest in the modular specialist and receive up to 2 million tons per year of liquefaction capacity from its projects. The duo said Monday the deal includes pre-sanction investment by Devon and a heads of agreement to finalize a 1 mt/year tolling agreement for capacity in Delfin’s first FLNG project. The transaction also includes options for additional future equity investments by Devon and up to 1 mt/year more in capacity at Delfin’ first vessel or a future floater. Delfin’s project consists of up to six liquefaction vessels offshore Louisiana, each with a nameplate production capacity of 3.5 million tons per year and intended to serve the export market.

Tom Haywood, Houston and Everett Wheeler, Washington

Natural Gas Spot Prices

Top 5 Upward & Downward Price Movements
AECOKingsgateTetco ELASoCal CitygateAlgonquinEl Paso PermianTranswes E of ThoreauWaha HubEmersonWestcoast Station 2-300%-250%-200%-150%-100%-50%0%50%100%150%AECOKingsgateTetco ELASoCal CitygateAlgonquinEl Paso PermianTranswes E of ThoreauWaha HubEmersonWestcoast Station 2
Note: Sep 6' 22 versus prior day price: points moving up (7), down (69).
Natural Gas Spot Prices
Trade Date: Sep. 6, 2022 / Flow Date: Sep. 7, 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 GasTransmission Co.Natural GasPipeline Co.NorthwestPipelineNOVA GasTransmission LtdPanhandle EasternPipeline Co.Tennessee GasPipeline Co.Texas EasternTransmissionTranscoTranswesternPipeline Company,LLC051015202530354045505560Algonquin GasTransmissionColumbia GasTransmissionEl Paso NaturalGasKern River GasTransmission Co.Natural GasPipeline Co.NorthwestPipelineNOVA GasTransmission LtdPanhandle EasternPipeline Co.Tennessee GasPipeline Co.Texas EasternTransmissionTranscoTranswesternPipeline Company,LLC
Critical Notices

Natural Gas Futures

Nymex Henry Hub Future Price Curves
Sep 6, '22
Oct'22Nov'22Dec'22Jan'23Feb'23Mar'23Apr'23May'23Jun'23Jul'23Aug'23Sep'23($/MMBtu)4.555.566.577.588.5Oct'22Nov'22Dec'22Jan'23Feb'23Mar'23Apr'23May'23Jun'23Jul'23Aug'23Sep'23CurrentLast Month
Henry Hub
Change from prior day, Sep 2 '22


Related Markets

Comparative Fuels

Comparative Fuels
Prices for Sep 6 '22

Spot Cash Electricity Prices

Spot Cash Electricity Prices
Today's prices as of Sep 2 '22

Gas Needed to Replace Offline Nuclear Capacity

Gas Needed to Replace Off Line Nuclear Capacity
912656634685902104011299561142Aug 29Aug 30Aug 31Sep 1Sep 2Sep 3Sep 4Sep 5Sep 6(MMcf/d)0100200300400500600700800900100011001200Aug 29Aug 30Aug 31Sep 1Sep 2Sep 3Sep 4Sep 5Sep 6NortheastSoutheastTexasUpper 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)
30 Aug 2231 Aug 22 1 Sep 22 2 Sep 22 3 Sep 22 4 Sep 22 5 Sep 2202000040000600008000010000012000030 Aug 2231 Aug 22 1 Sep 22 2 Sep 22 3 Sep 22 4 Sep 22 5 Sep 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
28 Aug29 Aug30 Aug31 Aug 1 Sep 2 Sep 3 Sep 4 Sep 5 Sep(MW)010002000300040005000600070008000(MMcf/d)1300140015001600170018001900200028 Aug29 Aug30 Aug31 Aug 1 Sep 2 Sep 3 Sep 4 Sep 5 SepCAISO 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
27 Aug28 Aug29 Aug30 Aug31 Aug 1 Sep 2 Sep 3 Sep 4 Sep 5 Sep(MW)02000400060008000100001200014000(MMcf/d)4006008001000120014001600180020002200240026002800300027 Aug28 Aug29 Aug30 Aug31 Aug 1 Sep 2 Sep 3 Sep 4 Sep 5 SepWind 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
27 Aug28 Aug29 Aug30 Aug31 Aug 1 Sep 2 Sep 3 Sep 4 Sep 5 Sep(MW)010002000300040005000600070008000(MMcf/d)900100011001200130014001500160027 Aug28 Aug29 Aug30 Aug31 Aug 1 Sep 2 Sep 3 Sep 4 Sep 5 SepPJM 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
20319518518419218217516631 August1September2September3September4September5September6September7September02040608010012014016018020022031 August1September2September3September4September5September6September7SeptemberCDDHDDCDD 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 1°
Orlando 1°
Boston -6°
Washington 3°
Seattle -2°
Philadelphia 2°
Nashville 4°
Minneapolis 9°
Los Angeles 2°
Las Vegas 6°
Detroit 8°
Denver 12°
Austin -2°
Atlanta 1°
Southeast US
New York 1°
Orlando 1°
Boston -6°
Washington 3°
Seattle -2°
Philadelphia 2°
Nashville 4°
Minneapolis 9°
Los Angeles 2°
Las Vegas 6°
Detroit 8°
Denver 12°
Austin -2°
Atlanta 1°

Copyright Notice

Copyright © 2022 by Energy Intelligence Group, Inc. Gas Market Reconnaissance is a trademark of Energy Intelligence. All rights reserved. Access, distribution and reproduction are subject to the terms and conditions of the subscription agreement and/or license with Energy Intelligence. Access, distribution, reproduction or electronic forwarding not specifically defined and authorized in a valid subscription agreement or license with Energy Intelligence is willful copyright infringement. Additional copies of individual articles may be obtained using the pay-per-article feature offered at www.energyintel.com.


Sales: sales@energyintel.comCustomer Service: customerservice@energyintel.com