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Coronavirus Thrusts LNG Market Further into Turmoil as More Cargoes Float with Nowhere to Go
NGI Weekly Intel
Coronavirus Thrusts LNG Market Further into Turmoil as More Cargoes Float with Nowhere to Go

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NGI Weekly Newsletter

March 30, 2020


Calmer Heads Prevail in Natural Gas Forwards Trading; Coming Demand Destruction Possibly ‘Substantial’

After major swings the last couple of weeks from the double whammy of an ongoing oil price war and the coronavirus pandemic, natural gas forward prices steadied during the March 19-25 period, according to NGI’s Forward Look.

U.S. Natural Gas Price Forecasts Evolving as Coronavirus, Oil Price Slump Roil Markets

Natural gas prices are forecast to be pressured into 2021, with potential relief as associated output falls on reduced oil drilling and more coal-to-gas switching, according to analysts.

Coronavirus Thrusts LNG Market Further into Turmoil as More Cargoes Float with Nowhere to Go

Bedlam reigned in the global natural gas market on Thursday as more force majeures were issued, cargoes appeared to have nowhere to go, and prices continued spiraling because of widespread measures to stem the coronavirus outbreak.

Sempra Still Bullish on Mexico LNG Export Project, but Pushes Back Sanctioning to 2Q

San Diego-based Sempra Energy executives remain confident that the Energía Costa Azul (ECA) liquefied natural gas (LNG) export project in Mexico’s Baja California will go ahead as planned despite the need to push back a final investment decision into the second quarter.

Colorado Pauses Energy Rules Makeover as Coronavirus Upends Regulatory Schedules

The Colorado Oil and Gas Conservation Commission (COGCC) on Wednesday reconsidered plans to hold a virtual meeting to discuss changes to Senate Bill (SB) 19-181, opting now to temporarily pause the rulemaking schedule on coronavirus concerns.

In Victory for Standing Rock Sioux, New EIS Ordered for Dakota Access Pipeline

A federal judge has reopened the question of whether the Dakota Access Pipeline (DAPL) in North Dakota, which began flowing crude from North Dakota’s Bakken...

Pacific Northwest Natural Gas Outlook Seen Calm Amid Coronavirus Storm, Says NWGA

While acknowledging the coronavirus’ ultimate impacts are still unknown, the annual natural gas outlook for the Pacific Northwest is a mirror image of the recent past: abundant supply, low prices, modest demand and adequate capacity, according to the Northwest Gas Association (NWGA).

Coronavirus Economic Fallout May Boost NGVs as Alternative Transportation

As an offshoot of the global economic impacts on energy supply/demand spurred by the coronavirus, natural gas vehicles may get a boost as power markets and renewable equipment production are seen as potential casualties.

Coronavirus, Commodity Price Crash Prompt North Dakota to Write Prescription for Idle Wells

The North Dakota Industrial Commission (IC) on Tuesday adopted remedies that may protect oil and gas producers during an expected spike in idle wells from the global economic slowdown.

Mexico Oil, Natural Gas Output Inches Upward in February; Coming Months Less Certain

Crude oil production in Mexico rose for a fourth straight month in February, although the president indicated this week that the government would likely revise production goals downward for state oil company Petróleos Mexicanos (aka Pemex) amid the current oil market turmoil.

Diversified Reaches Deal to Extend Ohio Well Plugging Obligations

Diversified Gas & Oil plc said this week that it has extended its asset retirement agreement with Ohio regulators and agreed to plug more wells each year.

Equinor Halts U.S. Onshore Activity, Joining Oxy, Eni, Aramco in Pullback as Coronavirus Consumes Energy Demand

Equinor ASA’s Lower 48 operations...

Icahn Cements Control at Oxy through Board Appointments

In concessions to activist shareholder Carl Icahn, Houston-based independent Occidental Petroleum Corp. has named Magnolia Oil and Gas Corp. CEO Stephen Chazen as chairman and appointed three Icahn-picked directors to the board.

Natural Gas, Power Utilities Said Well-Positioned to Weather Coronavirus Impacts

Regulated natural gas and power utilities are relatively well positioned to weather the economic impacts of the Covid-19 pandemic, according to a new report by Moody’s Investors Service.


California Governor, PG&E Agree on Bankruptcy Exit Plan

California Gov. Gavin Newsom and bankruptcy bound Pacific Gas and Electric Co. (PG&E) and its parent company have informed a federal court in San Francisco of their joint support for a revised plan of reorganization for the combination utility’s exit from Chapter 11. The agreement includes PG&E’s acceptance of a state takeover if it fails to get timely court and state approvals.


Dallas Fed Energy Survey Confirms ‘Overwhelmingly’ Bleak Conditions in Texas, Louisiana and New Mexico

Oil and natural gas activity in Texas, southern New Mexico and northern Louisiana fell off a cliff in the first three months of the year, unsurprising news from the Federal Reserve Bank of Dallas.

Global Natural Gas, Oil Industry Responding to ‘Unprecedented’ Coronavirus Crisis with Donations, Relief Efforts

As natural gas and oil markets have spiraled into unprecedented territory in part on uncertainty over the coronavirus pandemic, a slew of energy companies has stepped up as stewards in many communities across the Lower 48 and abroad.

Argentina Orders 11 LNG Cargoes for Upcoming Southern Cone Winter as Prices Plummet

Despite growing domestic gas production from its Vaca Muerta formation and plans to develop...

As Mexico Preached Austerity, CFE Added 2,386 Workers in 2019

Mexico cut thousands of government energy jobs to reduce spending last year, but the state-run utility Comisión Federal de Electricidad (CFE) still added 2,386 employees, a sign experts say demonstrates the political sway of the electricity company’s CEO Manuel Bartlett, an ally of President Andrés Manuel López Obrador.

Mariner East Cleared for Limited Work in Pennsylvania During Coronavirus Shut Down

Energy Transfer LP (ET) said Tuesday Pennsylvania has granted a waiver allowing it to conduct limited work on the Mariner East (ME) pipeline project during broader economic restrictions imposed by Gov. Tom Wolf to mitigate the spread of coronavirus.

LNG Cargoes Seen Shifting to Asia as European Inventory Brims Amid Demand Destruction

European natural gas storage inventories are at record highs as shoulder season nears, the Energy Information Administration noted Tuesday, a factor that could eventually limit the continent’s ability to absorb liquefied natural gas imports as it faces more immediate demand threats from the coronavirus.

KMI’s Permian Highway Pipeline Scores Another Legal Win; Construction On Time but Adjusting for Coronavirus

Kinder Morgan Inc. has secured another victory for the 2 Bcf/d Permian Highway Pipeline cutting across the Hill Country of Texas after a U.S. District Court last week denied a preliminary injunction filed by opponents.

Chevron, Schlumberger Sharply Cut Capex as Coronavirus, Price Decline Cut Outlooks

Capital spending cuts are coming across the energy spectrum, with Chevron Corp. and Schlumberger Ltd. among the latest to respond...

Mexico Analysts Sound Alarm on Pemex, Economy As Coronavirus Spreads

Analysts and industry continue to sound the alarm about the vulnerability of Mexico’s state oil company and economy to low oil prices and the evolving coronavirus pandemic.

Alberta Government Approves Oil, Gas Aid Package As Prices, Demand Tank

Alberta authorities have granted reprieves from regulatory fees and drilling lease expirations for oil and gas operators to combat the twin plagues of the COVID-19 pandemic and unstable commodity prices.


Total, Shell Cut Capex as Coronavirus Debilitates Operating Plans for 2020

Royal Dutch Shell plc has reduced capital spending by $5 billion and Total SA spending has been cut by $3 billion for the year in reaction...
Husky Energy Revised 2020 Capital Guidance

Canadian Oil and Gas Industry Reverses Investment Course on Coronavirus Worries

Only two months after predicting the first investment growth since 2014, the Canadian oil and gas industry has reversed course by retreating...

Williams Adopts Poison Pill to Fend off Speculators Amid Market Volatility

Tulsa-based Williams, one of the United States’ largest natural gas pipeline operators, has adopted a limited duration stockholder rights agreement, known commonly as a poison pill, in order to protect shareholders from the speculative acquisition of company shares for a bargain amid current market volatility.

U.S. E&Ps Facing ‘Extensive Credit Shock’ on Coronavirus, Low Oil Prices

As Lower 48 natural gas and oil producers signal cutbacks to spending and activity, the latest data on permitting indicates operators already are...

COLUMN: To Improve Natural Gas Balance in Mexico During Trying Times, Open Capacity

Since its start of operations, the 2.3 Bcf/d Net Mexico pipeline has had enormous weight in the overall gas balance of Mexico. This pipeline, originally sponsored by the international arm of Pemex Gas y Petroquímica Básica (PGPB), is the first segment of the Ramones project.

FERC, NERC Move to Ensure Grid Reliability During Coronavirus Emergency

FERC and the North American Electric Reliability Corporation said Thursday they are taking steps to ensure that operators of the U.S. bulk electric system “can focus their resources on keeping people safe and the lights on” during the coronavirus emergency.


Oil, NatGas Leasing in Ohio National Forest Paused After Court Finds Regulators Ignored Drilling Impacts

Federal oil and gas leasing in Ohio’s only national forest has been suspended after a court agreed with environmental groups that the Bureau of Land Management (BLM) and the U.S. Forest Service (USFS) failed to adequately consider the impact of unconventional development when they opened the land for drilling.

U.S. Rig Count Plummets as Producers React to Oil’s Collapse

Signaling that producers are coming to grips with a grim new reality for crude markets, the U.S. rig count fell sharply during the week ended Friday (March 20), the latest data from Baker Hughes Co. (BKR) show.

U.S. Natural Gas, Oil Operators Said Prepared to Deal with Coronavirus Pandemic

Emergency plans formulated to deal with natural disasters and previous pandemics are at the ready to deal with the coronavirus, according to the energy industry’s top trade groups.

FERC Approves Gulf South’s Index 99 Natural Gas Expansion

FERC has authorized construction and operation of Gulf South Pipeline Co.’s proposed Index 99 Expansion project, which would increase natural gas firm transportation to markets along the Gulf Coast.


NGI's Bidweek Alert Day 5 - March 31st for April 2020
For more detailed information please download the Excel data file
South Texas
Agua Dulce -- --
Florida Gas Zone 1 -- --
NGPL S. TX -- --
Tennessee Zone 0 South -- -0.1000 to -0.1000
Texas Eastern S. TX -- -0.0500 to -0.0500
Transco Zone 1 -- -0.0700 to -0.0700
East Texas
Carthage -- -0.1850 to -0.1850
Houston Ship Channel -- -0.0600 to -0.0600
Katy -- --
NGPL TexOk 1.445 to 1.450 -0.2100 to -0.1875
Tennessee Zone 0 North -- -0.1800 to -0.1700
Texas Eastern E. TX -- -0.2050 to -0.2050
Transco Zone 2 -- --
West Texas/SE New Mexico
El Paso Permian 0.120 to 0.950 --
El Paso - Keystone Pool 0.140 to 0.400 --
El Paso - Plains Pool 0.900 to 0.950 --
El Paso - Waha Pool 0.120 to 0.400 --
Transwestern 0.150 to 0.200 --
Transwestern - Central -- --
Transwestern - W. TX 0.150 to 0.200 --
Waha 0.070 to 0.400 --
Alliance -- --
ANR ML7 -- --
Chicago Citygate 1.390 to 1.500 --
Chicago - Nicor Gas 1.480 to 1.500 --
Chicago - NIPSCO 1.465 to 1.465 --
Chicago - North Shore -- --
Chicago - Peoples 1.390 to 1.390 --
Consumers Energy -- -0.1600 to -0.1300
Dawn 1.430 to 1.515 -0.1500 to -0.1225
Defiance -- --
Rover-ANR -- --
Rover-Panhandle -- --
Emerson -- -0.1950 to -0.1900
Joliet -- --
Lebanon -- -0.2300 to -0.2300
Michigan Consolidated -- -0.1650 to -0.1350
NGPL Amarillo Mainline 1.350 to 1.350 --
Parkway/Union 1.495 to 1.550 --
REX Zone 3 Delivered -- -0.2500 to -0.2100
REX into ANR - Shelby -- -0.2300 to -0.2250
REX into MGT - Edgar -- -0.2300 to -0.2300
REX into NGPL - Moultrie -- -0.2500 to -0.2100
REX into PEPL - Putnam -- --
REX into Trunk - Douglas -- --
ANR SW 1.180 to 1.210 --
Enable East -- -0.3300 to -0.2850
NGPL Midcontinent 0.980 to 1.200 -0.6400 to -0.4850
Northern Border Ventura -- --
Northern Natural Demarc 1.320 to 1.395 -0.2750 to -0.2750
Northern Natural Ventura 1.335 to 1.400 -0.2800 to -0.2550
OGT -- -0.6200 to -0.5100
Panhandle Eastern 1.075 to 1.100 -0.6200 to -0.5025
Southern Star -- -0.4000 to -0.3800
North Louisiana/Arkansas
Perryville -- --
Texas Eastern, M1, 24 -- --
Texas Gas Zone 1 -- -0.2250 to -0.1850
Trunkline Zone 1A -- -0.2100 to -0.1700
South Louisiana
ANR SE -- -0.0700 to -0.0625
Columbia Gulf Mainline -- -0.2450 to -0.2000
Columbia Gulf onshore -- -0.1000 to -0.1000
Florida Gas Zone 2 -- --
Henry Hub -- -0.0050 to -0.0050
Pine Prairie -- -0.0725 to -0.0650
Southern Natural -- -0.0650 to -0.0550
Tennessee Line 500 -- -0.0675 to -0.0650
Tennessee Line 800 -- -0.1000 to -0.0950
Texas Eastern E. LA -- -0.1100 to -0.0900
Texas Eastern W. LA -- -0.0700 to -0.0500
Texas Gas Zone SL -- --
Transco Zone 3 -- -0.0600 to -0.0600
Trunkline E. LA -- --
Trunkline W. LA -- --
FGT Citygate -- --
Florida Gas Zone 3 -- 0.0025 to 0.0250
Tenn Zone 1 100L -- -0.1850 to -0.1650
Tenn Zone 1 non-St. 87 -- -0.1850 to -0.1725
Tenn Zone 1 St. 87 -- -0.1650 to -0.1650
Texas Eastern M-1, 30 -- --
Transco Zone 4 -- -0.0600 to -0.0450
Transco Zone 5 -- -0.0150 to 0.0150
Transco Zone 5 North -- --
Transco Zone 5 South -- -0.0150 to 0.0150
Columbia Gas -- -0.3100 to -0.2700
Dominion North -- --
Dominion South -- -0.4650 to -0.4300
Leidy Hub -- --
Millennium East Pool -- -0.4500 to -0.3850
Tenn Zone 4 200L -- -0.2500 to -0.2350
Tennessee Zn 4 313 Pool -- -0.3600 to -0.3350
Tennessee Zn 4 Marcellus -- -0.4800 to -0.4500
Texas Eastern M-2, 30 Delivery -- --
Texas Eastern M-2, 30 Receipt -- -0.4950 to -0.4500
Texas Eastern M-3, Delivery -- -0.4100 to -0.3700
Texas Eastern M-3, Receipt -- --
Transco-Leidy Line -- -0.4800 to -0.4325
Algonquin Citygate -- -0.1800 to -0.1500
Algonquin Citygate (non-G) -- -0.1800 to -0.1500
Algonquin Receipts -- --
Iroquois Zone 2 -- -0.1000 to -0.0900
Iroquois, Waddington -- -0.1100 to -0.0950
Niagara -- -0.2200 to -0.1800
Tenn Zone 5 200L -- --
Tenn Zone 5 200L East -- --
Tenn Zone 5 200L West -- --
Tenn Zone 5 300L -- --
Tenn Zone 6 200L -- -0.1500 to -0.1200
Tenn Zone 6 200L North -- --
Tenn Zone 6 200L South -- -0.1500 to -0.1200
Tenn Zone 6 300L -- --
Transco Zone 6 non-NY -- -0.4100 to -0.3550
Transco Zone 6 non-NY North -- -0.4100 to -0.3550
Transco Zone 6 non-NY South -- --
Transco Zone 6 NY -- -0.3800 to -0.3500
Rocky Mountains
Cheyenne Hub 1.180 to 1.290 --
CIG 1.220 to 1.285 --
CIG DJ Basin 0.960 to 1.000 --
El Paso Bondad -- --
El Paso San Juan 1.020 to 1.150 --
Kern River 1.230 to 1.290 --
Kingsgate -- --
Northwest Rockies -- --
Northwest S. of Green River -- --
Northwest Sumas 1.300 to 1.400 --
Northwest Wyoming Pool -- --
Opal 1.280 to 1.380 --
Questar -- --
Stanfield -- --
Transwestern San Juan 1.160 to 1.200 --
White River Hub 1.170 to 1.170 --
El Paso S. Mainline/N. Baja -- --
Kern Delivery 1.350 to 1.540 --
Malin 1.325 to 1.360 --
PG&E Citygate 2.180 to 2.390 --
SoCal Citygate 1.500 to 1.850 --
Southern Border, PG&E 1.100 to 1.250 --
Southern Border, SoCal 1.080 to 1.300 --
SoCal Border Avg. 1.080 to 1.300 --
SoCal Border - Blythe -- --
SoCal Border - Ehrenberg 1.150 to 1.300 --
SoCal Border - Kern River Station -- --
SoCal Border - Kramer -- --
SoCal Border - Needles 1.080 to 1.225 --
SoCal Border - Topock -- --
SoCal Border - Wheeler Ridge -- --
Alliance (APC) - ATP -- --
Empress 1.590 to 1.725 --
NOVA/AECO C 1.565 to 1.690 --
Westcoast Station 2 1.550 to 1.580 --
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.