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E&Ps, Analysts See Brighter Outlook for Natural Gas from Oil Shut-ins, Spending Cuts
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E&Ps, Analysts See Brighter Outlook for Natural Gas from Oil Shut-ins, Spending Cuts

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NGI Weekly Newsletter

May 25, 2020

NOAA Logo

NOAA Expecting as Many as 10 Atlantic Hurricanes This Season

The 2020 Atlantic hurricane season, which runs from June 1 to Nov. 30, will be a busy one, producing 13-19 named storms, including six-10 hurricanes, with up to six of them major hurricanes (Category 3 or higher), according to forecasters at the National Oceanic and Atmospheric Administration’s Climate Prediction Center. 

FERC

FERC Greenlighting Alaska LNG Export Project Called ‘Capstone Moment’

FERC has authorized Alaska Gasline Development Corp.’s (AGDC) plans to liquefy and export natural gas produced on Alaska’s North Slope from a plant at Nikiski.
dominion_south_prompt_fixed_prices

Steep Production Cuts Lift Natural Gas Forward Prices, but LNG Demand Still Major Concern

Bearish indicators are not in short supply for the natural gas market, but forward prices staged a meaningful comeback during the May 14-20 period, according to NGI’s Forward Look.
Pointe-LNG-and-Surrounding-NatGas-Infrastructure-20200521

Stalled Louisiana LNG Project Revived After Founders Take Reins Again

The team behind a mid-scale liquefied natural gas (LNG) export project in Plaquemines Parish, LA, which failed to gain traction years ago is trying to advance again with new investment capital and offtake agreements.
Superior-Energy-Services-Quarterly-Adjusted-EBITDA-20200521.png

Superior Energy Scuttles Forbes Merger as Covid-19 Slams Prices, Activity

Global completions specialist Superior Energy Services Inc. began the year with a merger in the...
AECO0520.png

Canada Regulators Cite Coronavirus in Delaying NGTL Expansion Decision

The Covid-19 virus has delayed Canadian government approval of a C$2.3 billion ($1.7 billion) capacity expansion proposed by TC Energy Corp.’s Alberta and British Columbia (BC) supply collection network, Nova Gas Transmission Ltd. (NGTL).
US-Produced-Water-Volumes-and-Water-Management-Value-20200402.png

Oklahoma Provides Clarity on Produced Water Ownership in Oil, Gas Fields

Oklahoma legislation designating who owns and is responsible for wastewater resulting from oil and natural gas drilling operations was signed into law on Tuesday by Gov. Kevin Stitt.
Ultra-Deepwater-Colomibia-Offshore-NatGas-Blocks-to-be-Operated-by-Royal-Dutch-Shell-20200213-v2(1)

Natural Gas Said Key To Colombia Energy Transition as Fracking, Offshore Gather Momentum

Natural gas is set to play an increasingly important role in Colombia, according to two prominent energy sector participants who spoke via web at the Institute of the Americas’ La Jolla Conference on Wednesday.
Weekly-US-Total-Oil-and-Natural-Gas-Rig-Count-20200520

U.S. Oil, Natural Gas Rig Count at Record Low as Demand Recovery Sputters

U.S. oil and natural gas drilling activity has hit its lowest point since Baker Hughes Co. began publishing rig count data in 1987...
Monthly-US-Natural-Gas-Vented-and-Flared-20200520

ExxonMobil, Pioneer Natural Collaborate on Project Astra to Reduce Permian Methane Emissions

A first-of-its-kind sensor network to monitor methane emissions across the Permian Basin in West Texas, dubbed Project Astra, may revolutionize the way leaks are found and repaired.
HenryHub0520

E&Ps, Analysts See Brighter Outlook for Natural Gas from Oil Shut-ins, Spending Cuts

Producers and analysts are cautiously -- but increasingly -- optimistic about the outlook for natural gas...
NGI_Logo_Blue_Markets

ICE Reports Steep Gains in Trading of Worldwide Natural Gas Contracts

The Intercontinental Exchange (ICE) said Wednesday that it continues to see record levels of open interest across its Asian, European and North American natural gas benchmarks as worldwide trade of the fuel has liberalized.
Ultra Petroleum

Ultra Again in Chapter 11 as Coronavirus Impact on Demand, Pricing Claims More Victims

Wyoming-focused Ultra Petroleum Corp. is seeking Chapter 11 bankruptcy protection for the second time in four years to eliminate debt exacerbated by low prices and stinging demand destruction from Covid-19.
GoldboroLNGsite

Goldboro LNG Hits Regulatory Snag in Alberta Related to Supply Acquisition

A second attempt is underway to fulfill environmental rules for a supply deal for the Goldboro liquefied natural gas export facility proposed for Canada’s east coast after the Alberta Energy Regulator (AER) rejected the first transaction plan.
Permian-Natural-Gas-Flaring-by-Quarter-20200406

New Mexico Oil, Gas Industry Urges More E&P Oversight, Collaboration to Reduce Natural Gas Flaring

In a proactive approach to work with New Mexico regulators to reduce the amount of natural gas flared when wells are drilled, a statewide industry coalition is recommending regulators update the rules and work hand-in-hand with operators to improve gas capture in the oilfields.
ShaleDaily_MarcellusSWPA-WV_YTD2020

Natural Gas Prices Jump on EQT 1.4 Bcf/d Curtailment

Equitrans Midstream Corp. said in a regulatory filing on Monday its largest customer, EQT Corp., is temporarily curtailing 1.4 Bcf/d...
/ext/resources/Daily-GPI/DG2Q2020/California-Net-Electricity-Generation-by-Source-20200505.png

Lower 48 Production Cuts, Economic Reopenings Help Boost WTI Prices

West Texas Intermediate crude oil futures have strengthened this week as production cuts take effect and economies begin to partially reopen.
California-Net-Electricity-Generation-by-Source-20200505

California’s Ventura County Eyes Batteries to Plug Loss in Natural Gas Generation

Mindful of California’s quest to eliminate carbon emissions over the next 30 years, Ventura County and local utility officials are developing a 100 MW project with battery storage capacity for 400 MWh to replace existing coastal natural gas-fired generation plants. 

SandRidge_Energy

SandRidge Reins in Costs, Annihilates Capex to Weather Coronavirus Fallout

Oklahoma City-based SandRidge Energy Inc. is slashing costs, including in its executive ranks, and dramatically lowering capital expenditures (capex) to ensure it can operate as a going concern in what its new CEO called an “historically challenged” environment.
Nisource

Columbia Gas Seeking $6.5M Investment to Replace, Upgrade Infrastructure in Maryland

Columbia Gas of Maryland Inc. has filed a request with the state’s Public Service Commission (PSC) to approve an annual revenue increase of about $6.5 million to replace and upgrade underground natural gas distribution pipelines.
Mexico-Installed-Capacity-20200518

Using Coronavirus as ‘Excuse,’ Mexico Pushes Through Power Rules Said Damaging to Private Sector

The business climate in Mexico has been hurt by new laws favoring state power company Comisión Federal de Electricidad (CFE) over private sector generators, according to industry participants and analysts.
EIA-Oil-Production-20200518

Oil, Natural Gas Production from Key Lower 48 Plays Down Again in June, Says EIA

Oil and natural gas production from seven of the nation’s most prolific onshore unconventional plays will be down...
Transco-Williams_NESupplyEnhancementProjMapDec2016

New York, New Jersey Again Reject Northeast Supply Enhancement Project

New York and New Jersey have again denied water quality permits for the Northeast Supply Enhancement project, which would move more natural gas into New York City.
riogrande0918191

NextDecade Delays Rio Grande LNG FID to 2021, Cuts Costs to Reach Finish Line

NextDecade Corp. said Monday it now expects to make a final investment decision on its Rio Grande liquefied natural gas export project...
Pipeline-Incidents-by-Commodity-20200515

U.S. Pipeline Safety Report Reveals Fewer Incidents, More Infrastructure

Liquid pipeline incidents have decreased by 36% in the last five years even as pipeline mileage has increased by almost 10%, according to a review by energy industry groups.

WPX-Energy-Pro-Forma-Permian-Acreage-20191216.png

WPX Building Raft of DUCs in Williston, Permian as Covid-19 Disrupts Demand

To ensure its financial viability in uncertain times, WPX Energy Inc. is dropping rigs and crews in the Permian and Williston basins, as well as building a backlog of uncompleted wells to hold the line on costs until energy demand is higher.
Ring-Energy-Quarterly-EBITDA-20200518

Permian Pure-Play Ring Energy Shelving Activity Until ‘Turbulent Times’ Pass

Ring Energy Inc., whose drilling expertise is focused in the Permian Basin’s Northwest Shelf and Central Basin Platform, has joined its peers and suspended all operations pending an improved outlook for the energy industry.
David-Madero-20200515

Q&A with David Madero on Mexico’s Natural Gas Market Development

Editor’s Note: NGI’s Mexico Gas Price Index, a leader tracking Mexico natural gas market reform, is offering the following question-and-answer (Q&A) column as part of a regular interview series with experts in the Mexican natural gas market.
US-Monthly-Crude-Oil-Production-20200515

U.S. Oil Output Set for Consecutive Declines, but Demand Recovery Likely to Begin This Year

The Energy Information Administration (EIA) said Thursday it expects U.S. crude oil production to decline in both 2020 and 2021, driven by the Lower 48 onshore segment, in response to price and demand destruction caused by Covid-19.
Weekly-Eagle-Ford-Oil-and-Gas-Rig-Count-20200515

SilverBow Eyes Ramping Up Eagle Ford Natural Gas, Joins Magnolia in Curtailing Output

Eagle Ford Shale pure-play SilverBow Resources Inc. is looking to begin expanding its dry natural gas production late this year...
Daily-Natural-Gas-Deliveries-to-Elba-Island-LNG-Facility-20200515

Fire at Elba Island LNG Shuts Down Three Units, Cuts Feed Gas Deliveries

Kinder Morgan Inc. has confirmed that a fire broke out May 11 in a mixed refrigerant compressor at its Elba Island liquefied natural gas facility in Georgia, forcing it to shut down three liquefaction units that remain offline.
FERC

FERC’s Kohout Named First Chief of LNG Division

FERC has tapped 14-year staffer Andrew Kohout to run the Commission’s liquefied natural gas (LNG) division, which was created last year.
Nova-Aeco0513

Sinking U.S. Exports Drive Major Pullback in Natural Gas Forwards; AECO Losses Not as Severe

Faced with a massive decline in liquefied natural gas (LNG) demand and a slow reopening of the economy amid the coronavirus pandemic, natural gas forward prices collapsed during the May 7-13 period, NGI’s Forward Look data show.
ERCOT - Electric Reliability Council of Texas

Texas ERCOT Cuts Peak Power Load Forecast for Summer on Covid-19, but Still Sees Record Demand

The Electricity Reliability Council of Texas is forecasting record power use this summer, but less than originally forecast.
Quebec-Utica-Shale-Neighboring-Shale-Plays-and-NatGas-Infrastructure-20180608-v2

Quebec Urged to Consider Utica Shale Natural Gas in Energy Transition to Zero Emissions

Natural gas holds the key to achieving French Canada’s declared climate change and energy transition policy goals, including tapping abundant Utica Shale reserves, to move Quebec toward an all-electric future, according to a Montreal research agency.

3D"Sign

NGI's Bidweek Alert Day 4 - May 28th for June 2020
For more detailed information please download the Excel data file
FIXED RANGE BASIS RANGE
South Texas
Agua Dulce -- --
Florida Gas Zone 1 -- --
NGPL S. TX -- --
Tennessee Zone 0 South -- --
Texas Eastern S. TX -- -0.0500 to -0.0300
Transco Zone 1 -- --
East Texas
Carthage -- -0.1750 to -0.1300
Houston Ship Channel -- -0.0300 to -0.0300
Katy -- --
NGPL TexOk -- -0.1550 to -0.1450
Tennessee Zone 0 North -- -0.1400 to -0.1325
Texas Eastern E. TX -- -0.1400 to -0.1400
Transco Zone 2 -- --
West Texas/SE New Mexico
El Paso Permian 1.360 to 1.470 --
El Paso - Keystone Pool 1.370 to 1.420 --
El Paso - Plains Pool 1.440 to 1.470 --
El Paso - Waha Pool 1.360 to 1.470 --
Transwestern 1.390 to 1.410 --
Transwestern - Central 1.410 to 1.410 --
Transwestern - W. TX 1.390 to 1.400 --
Waha 1.360 to 1.470 --
Midwest
Alliance -- --
ANR ML7 -- --
Chicago Citygate 1.585 to 1.665 -0.0900 to -0.0900
Chicago - Nicor Gas 1.585 to 1.585 -0.0900 to -0.0900
Chicago - NIPSCO 1.585 to 1.665 -0.0900 to -0.0900
Chicago - North Shore -- --
Chicago - Peoples -- --
Consumers Energy -- -0.0925 to -0.0650
Dawn 1.635 to 1.700 -0.1075 to -0.0700
Defiance -- -0.1800 to -0.1600
Rover-ANR -- --
Rover-Panhandle -- -0.1800 to -0.1600
Emerson -- -0.1450 to -0.1000
Joliet -- --
Lebanon -- -0.1650 to -0.1650
Michigan Consolidated 1.610 to 1.645 -0.1350 to -0.1100
NGPL Amarillo Mainline -- --
Parkway/Union 1.650 to 1.675 --
REX Zone 3 Delivered -- -0.1650 to -0.1650
REX into ANR - Shelby -- -0.1650 to -0.1650
REX into MGT - Edgar -- --
REX into NGPL - Moultrie -- --
REX into PEPL - Putnam -- --
REX into Trunk - Douglas -- --
Midcontinent
ANR SW -- -0.2300 to -0.2150
Enable East -- -0.1350 to -0.1200
NGPL Midcontinent -- -0.1500 to -0.1500
Northern Border Ventura -- --
Northern Natural Demarc 1.590 to 1.695 --
Northern Natural Ventura 1.610 to 1.655 --
OGT 1.645 to 1.645 -0.1500 to -0.1200
Panhandle Eastern 1.450 to 1.540 -0.2700 to -0.2400
Southern Star -- -0.2150 to -0.2150
North Louisiana/Arkansas
Perryville -- --
Texas Eastern, M1, 24 -- --
Texas Gas Zone 1 -- -0.1625 to -0.1475
Trunkline Zone 1A -- -0.1850 to -0.1400
South Louisiana
ANR SE -- -0.0850 to -0.0825
Columbia Gulf Mainline -- -0.1800 to -0.1550
Columbia Gulf onshore -- -0.1000 to -0.0700
Florida Gas Zone 2 -- --
Henry Hub -- -0.0050 to -0.0050
Pine Prairie -- -0.0700 to -0.0600
Southern Natural -- -0.0800 to -0.0550
Tennessee Line 500 -- -0.0850 to -0.0750
Tennessee Line 800 -- -0.1200 to -0.1150
Texas Eastern E. LA -- -0.0800 to -0.0800
Texas Eastern W. LA -- -0.0700 to -0.0700
Texas Gas Zone SL -- --
Transco Zone 3 -- -0.0775 to -0.0675
Trunkline E. LA -- --
Trunkline W. LA -- --
Southeast
FGT Citygate -- --
Florida Gas Zone 3 -- 0.0000 to 0.0100
Tenn Zone 1 100L -- -0.1500 to -0.1400
Tenn Zone 1 non-St. 87 -- --
Tenn Zone 1 St. 87 -- -0.1500 to -0.1400
Texas Eastern M-1, 30 -- -0.1400 to -0.1400
Transco Zone 4 -- -0.0700 to -0.0450
Transco Zone 5 -- -0.0500 to -0.0300
Transco Zone 5 North -- --
Transco Zone 5 South -- -0.0500 to -0.0300
Appalachia
Columbia Gas -- -0.2700 to -0.2400
Dominion North -- -0.4600 to -0.4600
Dominion South -- -0.4700 to -0.4300
Leidy Hub -- --
Millennium East Pool -- -0.5600 to -0.4700
Tenn Zone 4 200L -- -0.3100 to -0.2800
Tennessee Zn 4 313 Pool -- -0.3900 to -0.3700
Tennessee Zn 4 Marcellus -- -0.6000 to -0.5750
Texas Eastern M-2, 30 Delivery -- --
Texas Eastern M-2, 30 Receipt -- -0.5100 to -0.4600
Texas Eastern M-3, Delivery -- -0.4400 to -0.3900
Texas Eastern M-3, Receipt -- --
Transco-Leidy Line -- -0.5450 to -0.4800
Northeast
Algonquin Citygate -- -0.4000 to -0.3500
Algonquin Citygate (non-G) -- -0.4000 to -0.3500
Algonquin Receipts -- --
Iroquois Zone 2 -- -0.3200 to -0.3000
Iroquois, Waddington -- -0.2600 to -0.2200
Niagara -- --
Tenn Zone 5 200L -- --
Tenn Zone 5 200L East -- --
Tenn Zone 5 200L West -- --
Tenn Zone 5 300L -- --
Tenn Zone 6 200L -- -0.2800 to -0.2600
Tenn Zone 6 200L North -- --
Tenn Zone 6 200L South -- -0.2800 to -0.2600
Tenn Zone 6 300L -- --
Transco Zone 6 non-NY -- -0.4650 to -0.4200
Transco Zone 6 non-NY North -- -0.4650 to -0.4200
Transco Zone 6 non-NY South -- --
Transco Zone 6 NY -- -0.4600 to -0.4200
Rocky Mountains
Cheyenne Hub 1.485 to 1.530 --
CIG -- --
CIG DJ Basin 1.350 to 1.350 --
El Paso Bondad -- --
El Paso San Juan 1.470 to 1.510 --
Kern River 1.520 to 1.590 --
Kingsgate -- --
Northwest Rockies -- --
Northwest S. of Green River -- --
Northwest Sumas 1.510 to 1.560 --
Northwest Wyoming Pool -- --
Opal 1.520 to 1.560 --
Questar -- --
Stanfield 1.570 to 1.570 --
Transwestern San Juan 1.550 to 1.550 --
White River Hub -- --
Arizona/Nevada
El Paso S. Mainline/N. Baja -- --
Kern Delivery 1.800 to 1.800 --
California
Malin 1.550 to 1.580 --
PG&E Citygate 2.490 to 2.585 --
SoCal Citygate 2.020 to 2.070 --
Southern Border, PG&E -- --
Southern Border, SoCal 1.560 to 1.770 --
SoCal Border Avg. 1.560 to 1.770 --
SoCal Border - Blythe -- --
SoCal Border - Ehrenberg 1.700 to 1.730 --
SoCal Border - Kern River Station -- --
SoCal Border - Kramer 1.770 to 1.770 --
SoCal Border - Needles 1.560 to 1.560 --
SoCal Border - Topock 1.575 to 1.625 --
SoCal Border - Wheeler Ridge -- --
Canada
Alliance (APC) - ATP -- --
Empress 1.890 to 1.985 --
NOVA/AECO C 1.865 to 1.970 --
Westcoast Station 2 1.900 to 1.910 --
NOTE: Both the buy and the sell side of transactions are counted in this table, as they are in NGI’s daily, weekly and bidweek natural gas price tables, a standard practice which supports consistency and uniformity across products as explained in our price methodology.