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LNG Supply Glut Overshadows Middle East Tensions to Hold Back Prices
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LNG Supply Glut Overshadows Middle East Tensions to Hold Back Prices

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NGI Weekly Newsletter

January 13, 2020

Transco-Flow-Shift-Amid-SPL-Fog-Issues-20200116-v2

Natural Gas Forwards Resume Slide as January Warmth Continues

After a one-week reprieve, natural gas forwards resumed their slide, with sharp double-digit decreases seen across much of the United States as warm weather appears to prevail for the rest of the month.
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BP Exec Says Impressed By Progress Made in Mexico Natural Gas Market

BP Energy Co. CEO Orlando Alvarez stressed the importance of continuing the process toward a transparent, competitive natural gas market in Mexico at the 3rd Mexico Infrastructure Projects Forum in Monterrey, Mexico on Wednesday.
Increases-in-US-Exports-to-China-Over-Two-Years-20200116

Trade Deal For Now Unlikely to Give U.S. LNG Exports a Boost

The agreement signed by President Trump this week to ease trade tensions with China provided little assurance that growing U.S. liquefied natural gas exports will have a stronger role to play in one of the world’s largest import markets.
Noble-Energy-Offshore-Israel-Assets-20191231

Leviathan Natural Gas Now Flowing into Egypt, Israel and Jordan

Natural gas sales from the mammoth Leviathan field offshore Israel as of Wednesday were underway to Egypt, Israel and Jordan, Houston-based Noble Energy Inc. said.

New Panama Canal Fees Not Seen Dampening U.S. LNG Exports

New fees to be implemented in mid February by the Panama Canal Authority don’t bode well for the liquefied natural gas industry, but they may not lead to major repercussions for U.S. exports, an analyst said.
State-and-Local-Taxes-and-State-Royalties-Paid-by-Texas-Oil-and-Natural-Gas-Industry-20200116

Texas Natural Gas, Oil Industry in FY2019 Generated $16B-Plus in Taxes and Royalties

The natural gas and oil industry in Texas paid more than $16 billion last year in combined state/local taxes and in royalties, the highest in history, according to...

Pennsylvania Regulators, Range Resources Face Off Over Problem NatGas Well

Pennsylvania regulators and Range Resources Corp. continue to quarrel over whether a natural gas well in the northeastern part of the state is responsible for fouled water nearby.

Market Bracing for Slew of Negative Reports for North America’s E&P, OFS Sectors

The end-of-year earnings reports for North America’s natural gas and oil industry may be ugly if the preliminary results issued by Chevron Corp., Royal Dutch Shell plc and Appalachia-focused EQT Corp. are any indication.
Andres-Manuel-Lopez-Obrador-20190404

Mexico Industrial Chamber Rebukes AMLO Energy Policies, Cites Importance of Natural Gas Supply

Mexico industrial chamber Canacintra on Monday issued a rebuke of President Andrés Manuel López Obrador’s state-first energy policies, calling for the return of oil and gas bid rounds, stressing the vital importance of natural gas and electricity to the economy and warning against regulatory changes that favor Mexico’s state-owned energy companies over their private sector competitors.
Weekly-Lower-48-Oil-and-Gas-Rig-Count-20200115

Rockies Leads Lower 48 Oil, Gas Permitting Slump in December

Capital discipline appeared to creep into the U.S. drilling permit count at the end of...
US-LNG-Facilities-and-US-Railroad-Network-20200114

NTSB Sounds Alarm on Proposal to Authorize LNG by Rail Across U.S.

The National Transportation Safety Board has warned that public safety is at risk if a proposed rule to allow shipping liquefied natural gas on U.S. railroads...

BlackRock Shifting Capital Allocation to Sustainable Projects, Fewer Fossil Fuels

BlackRock Inc., the world’s No. 1 asset manager with nearly $7 trillion in investments, plans to shift how funds are allocated, which could include exiting stocks that “present a high sustainability-related risk,” including for some fossil fuels projects.

Kinder Readies Service for Fourth Elba Island LNG Train

A Kinder Morgan Inc. affiliate has asked federal regulators for permission to bring into service a fourth liquefied natural gas production unit at the Elba Island Liquefaction project in Georgia.

Encana Shareholders Overwhelmingly OK Moving to Denver, Rebranding as Ovintiv

Calgary stalwart Encana Corp. will be making Denver its new home after winning investor approval to relocate and to change its brand to Ovintiv.
US-Gulf-Coast-PADD-3-NGL-Exports-and-NGL-Composite-Price-20200114

Enterprise’s Mont Belvieu NGL Complex Ramping More Services

A new isobutane dehydrogenation plant, part of the massive Mont Belvieu natural gas liquids (NGL) complex east of Houston should see increasing volumes over the next two weeks, Enterprise Product Partners LP said Monday.

EIA Trims 2020 Natural Gas Price Forecast to $2.33; Relief Seen in 2021

Domestic natural gas production will continue to outpace consumption in 2020, resulting in Henry Hub spot prices averaging only $2.33/MMBtu for the year, a 24-cent decline from the 2019 average of $2.57/MMBtu, which in turn was down 59 cents compared with 2018 levels, according to the Energy Information Administration (EIA).
Planned-US-Electric-Generating-Capacity-Additions-20200114

Natural Gas to Trail Wind, Solar in New Electricity Generation This Year, EIA Says

The United States will add 42 GW of new electricity capacity to commercial operations this year, with 9.31 GW (22%) coming in the form of natural gas-burning...
Monthly-Eastern-Canada-Marketable-Natural-Gas-Production-20200114

Corridor Resources Rebrands with Mission to Revive Natural Gas Output in Eastern Canada

New Alberta management will take over Atlantic Canada’s lone natural gas producer with plans to revive...
Number-of-Greater-Than-100mmboe-Discoveries-and-High-Impact-Exploration-Activity-20200113

Natural Gas Dominates ‘19 Global Discoveries, with Offshore in Focus

Natural gas and oil explorers discovered up to 13 billion boe worldwide in 2019, the most volumes since 2015, with most in deepwater and...

MidCon, Rockies E&Ps Report 4Q Activity Slowdown with No Near-Term Rebound Seen

Oil and gas companies in the Midcontinent and Rockies reported continued activity declines during the fourth quarter, while expectations for future activity continued to fall as well, according to the Federal Reserve Bank of Kansas City’s quarterly energy survey.
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Permian Consolidation Continues As Parsley Completes $2.3B Jagged Peak Merger

Parsley Energy Inc. on Friday announced the completion of its $2.27 billion acquisition of fellow Permian Basin pure-play Jagged Peak Energy Inc., which is backed by Houston-based private equity firm Quantum Energy Partners.
Gross-US-Exports-of-Natural-Gas-20200113.png

LNG Supply Glut Overshadows Middle East Tensions to Hold Back Prices

Rising tensions in the Middle East that kicked off the New Year and sent a brief jolt through energy markets weren’t enough to outweigh the global supply glut that has kept a lid on liquefied natural gas (LNG) prices.
mexicoproduction

López Obrador Calls for Changes at Mexico’s Powerful Oil Workers Union

Mexican President Andrés Manuel López Obrador has called for free and fair elections to elect a new head at the 100,000-member Mexican oil union as part of Mexico’s commitment to the democratic principles of the United States-Mexico-Canada Agreement’s (USMCA) chapter on labor.
ShaleDaily_MarcellusSWPA-WV

Appalachian Heavyweight EQT Warns of $1B-Plus Impairment for Fourth Quarter

EQT Corp. said in a regulatory filing on Monday it may incur a steep one-time impairment of up to $1.8 billion...
Europe-LNG-Imports-by-Export-Country-20191224

Dutch Gate LNG Terminal Sets Record in Another Sign of Soaring European Inventories

Operators of the Gate Terminal in the Netherlands, a key entry point for liquefied natural gas in Northwest Europe, said ship operations shattered...
Monthly-Average-Day-Ahead-Prices-at-Selected-Electricity-Market-Hub-20200110

Low Natural Gas Costs Hold Down Electricity Prices in 2019, Says EIA

Persistently low U.S. natural gas prices helped keep wholesale electricity prices down in 2019, according to a report from the Energy Information Administration Friday.
sdbaker

E&Ps Continuing to Pull Back as U.S. Rig Count Plunges Further

Further signaling the significant headwinds facing exploration and production (E&P) companies going into 2020, the latest Baker Hughes Co. rig count showed another steep drop in U.S. drilling activity for the week ended Friday (Jan. 10).
Annual-Permian-Basin-Oil-and-Gas-Employment-20200110

Permian NatGas, Oil Output and Jobs Soaring, but Concerns Abound on Trade, Takeaway

The Permian Basin employed 87,000-plus people last year, mostly in upstream operations, nearly twice...
Traps-20200110-01

BC Authorities Investigating Deadly Traps Discovered Along Coastal GasLink Route

Potentially lethal guerrilla resistance tactics have triggered a criminal investigation into a native claims crusade to stop construction of TC Energy Corp.’s Coastal GasLink pipeline across northern British Columbia (BC).
Monthly-Average-Natural-Gas-Spot-Prices-at-Key-Trading-Hubs-20200109

In Year of Extremes, 2019 NatGas Spot Prices Lowest in Three Years

Natural gas spot prices in 2019 were the lowest they’ve been in three years, and the affordable gas spurred higher consumption in the electric sector and higher exports, according to the Energy Information Administration (EIA).
Top-10-Largest-Planned-Petrochemical-and-Plastics-Plants-20200109

Led by LNG, U.S. Oil and Gas Projects Seen Driving 30% Rise in GHG Emissions by 2025

Planned oil and gas-related projects in the United States could release up to 227 million tons (mmt) of additional greenhouse gas (GHG) pollution by the end of 2025, representing a 30% rise from the 764 mmt emitted by the industry in 2018, according to a new report by the Environmental Integrity Project (EIP).
Infrastructure-Projects-Currently-Undergoing-Federal-Review-20200109

Natural Gas & Oil Industry Hails Trump Plan to Exempt Major Infrastructure from NEPA Oversight

The nation’s benchmark environmental protection law, signed by President Nixon 50 years ago, may be eased under an overhaul unveiled Thursday by the Trump Administration, which if it were to clear legal obstacles, would strip constraints on constructing natural gas and oil pipelines, power plants and other major infrastructure projects.

Process to Fill Empty FERC Seats Reverts Back to Square One

The process to nominate and confirm two new commissioners to FERC, which appeared to be nearing a significant milestone at year's end, reverted back to square one with the flip of the calendar.

Colorado Anti-Drilling Group Eyes Another Six Ballot Initiatives

Six would-be ballot measures aimed at restricting oil and natural gas development were submitted to the Colorado Secretary of State on Tuesday by an anti-drilling group that sponsored a failed measure in 2018.
TC Energy's Tula - V. Reyes & Tuxpan - Tula Pipelines

AMLO Backs Tuxpan-Tula Pipeline Change, Public-Private Energy Investment Plan

Mexico President Andrés Manuel López Obrador touched on multiple issues relevant to the hydrocarbons sector during his daily morning press conference on Wednesday, including the Tuxpan-Tula natural gas pipeline, oil and gas bid rounds and a pending public-private energy investment plan.

3D"Sign

NGI's Bidweek Alert Day 5 - December 31st for January 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 -- -0.1575 to -0.1525
Texas Eastern S. TX -- --
Transco Zone 1 -- -0.0850 to -0.0850
East Texas
Carthage -- --
Houston Ship Channel -- --
Katy -- --
NGPL TexOk -- -0.1900 to -0.1800
Tennessee Zone 0 North -- -0.1800 to -0.1700
Texas Eastern E. TX -- --
Transco Zone 2 -- --
West Texas/SE New Mexico
El Paso Permian 0.850 to 1.570 --
El Paso - Keystone Pool 0.950 to 1.300 --
El Paso - Plains Pool 1.450 to 1.570 --
El Paso - Waha Pool 0.850 to 1.300 --
Transwestern 1.050 to 1.200 --
Transwestern - Central 1.050 to 1.200 --
Transwestern - W. TX 1.050 to 1.200 --
Waha 0.850 to 1.300 --
Midwest
Alliance -- --
ANR ML7 -- --
Chicago Citygate 2.265 to 2.355 --
Chicago - Nicor Gas 2.270 to 2.350 --
Chicago - NIPSCO 2.265 to 2.355 --
Chicago - North Shore -- --
Chicago - Peoples 2.275 to 2.275 --
Consumers Energy -- -0.0400 to -0.0100
Dawn 2.070 to 2.270 0.0100 to 0.0400
Defiance -- --
Rover-ANR -- --
Rover-Panhandle -- --
Emerson -- 0.0250 to 0.0800
Joliet -- --
Lebanon -- -0.1000 to -0.1000
Michigan Consolidated 2.040 to 2.045 -0.1400 to -0.1250
NGPL Amarillo Mainline -- --
Parkway/Union 2.135 to 2.330 0.1500 to 0.1500
REX Zone 3 Delivered -- -0.1200 to -0.0525
REX into ANR - Shelby -- -0.1200 to -0.0525
REX into MGT - Edgar -- --
REX into NGPL - Moultrie -- -0.0650 to -0.0650
REX into PEPL - Putnam -- -0.0900 to -0.0900
REX into Trunk - Douglas -- --
Midcontinent
ANR SW -- -0.2700 to -0.2000
Enable East -- -0.2050 to -0.1700
NGPL Midcontinent 1.350 to 1.555 -0.9000 to -0.6000
Northern Border Ventura -- --
Northern Natural Demarc 2.300 to 2.380 --
Northern Natural Ventura 2.385 to 2.480 --
OGT 1.630 to 1.630 -0.6100 to -0.6000
Panhandle Eastern 1.590 to 1.725 -0.5400 to -0.3975
Southern Star -- -0.2000 to -0.2000
North Louisiana/Arkansas
Perryville -- --
Texas Eastern, M1, 24 -- --
Texas Gas Zone 1 -- -0.1675 to -0.1475
Trunkline Zone 1A -- -0.1675 to -0.1425
South Louisiana
ANR SE -- --
Columbia Gulf Mainline -- -0.1800 to -0.1700
Columbia Gulf onshore -- -0.0900 to -0.0900
Florida Gas Zone 2 -- --
Henry Hub -- -0.0050 to 0.0000
Southern Natural -- -0.0600 to -0.0500
Tennessee Line 500 -- -0.0800 to -0.0650
Tennessee Line 800 -- -0.1250 to -0.1200
Texas Eastern E. LA -- -0.1200 to -0.0975
Texas Eastern W. LA -- -0.0800 to -0.0800
Texas Gas Zone SL -- --
Transco Zone 3 -- -0.0500 to -0.0400
Trunkline E. LA -- --
Trunkline W. LA -- --
Southeast
FGT Citygate -- --
Florida Gas Zone 3 -- -0.0050 to 0.0100
Texas Eastern M-1, 30 -- --
Transco Zone 4 -- -0.0400 to -0.0150
Transco Zone 5 -- 0.9700 to 1.4000
Transco Zone 5 North -- 1.0000 to 1.1900
Transco Zone 5 South -- 0.9700 to 1.4000
Appalachia
Columbia Gas -- -0.3500 to -0.3225
Dominion North -- -0.4150 to -0.4100
Dominion South -- -0.4400 to -0.4125
Leidy Hub -- --
Millennium East Pool -- --
Tenn Zone 4 200L -- -0.1800 to -0.1600
Tennessee Zn 4 313 Pool -- -0.4000 to -0.3400
Tennessee Zn 4 Marcellus -- -0.4525 to -0.4200
Texas Eastern M-2, 30 Delivery -- --
Texas Eastern M-2, 30 Receipt -- -0.4450 to -0.3850
Texas Eastern M-3, Delivery -- 0.9700 to 1.6100
Texas Eastern M-3, Receipt -- --
Transco-Leidy Line -- -0.4250 to -0.3975
Northeast
Algonquin Citygate -- 3.5000 to 4.8500
Algonquin Citygate (non-G) -- 3.5000 to 4.8500
Algonquin Receipts -- --
Iroquois Zone 2 -- 4.2000 to 4.9500
Iroquois, Waddington -- 1.1500 to 1.4200
Niagara -- 0.1000 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 -- 4.4500 to 5.2500
Tenn Zone 6 200L North -- 4.4500 to 5.2500
Tenn Zone 6 200L South -- --
Tenn Zone 6 300L -- --
Transco Zone 6 non-NY -- 0.9200 to 1.3000
Transco Zone 6 non-NY North -- 0.9200 to 1.3000
Transco Zone 6 non-NY South -- --
Transco Zone 6 NY -- 1.7500 to 2.2500
Rocky Mountains
Cheyenne Hub 1.820 to 1.880 --
CIG 1.830 to 1.870 --
CIG DJ Basin -- --
El Paso Bondad 2.290 to 2.410 --
El Paso San Juan 2.380 to 2.520 --
Kern River 3.100 to 3.230 --
Kingsgate -- --
Northwest Rockies 3.250 to 3.250 --
Northwest S. of Green River -- --
Northwest Sumas 3.550 to 3.850 --
Northwest Wyoming Pool 3.250 to 3.250 --
Opal 3.000 to 3.300 --
Questar -- --
Stanfield -- --
Transwestern San Juan 2.470 to 2.480 --
White River Hub 2.400 to 2.400 --
Arizona/Nevada
El Paso S. Mainline/N. Baja -- --
Kern Delivery 3.800 to 3.950 --
California
Malin 3.125 to 3.320 --
PG&E Citygate 3.450 to 3.610 --
SoCal Citygate 5.800 to 5.950 --
Southern Border, PG&E 2.600 to 2.640 --
Southern Border, SoCal 2.635 to 3.500 --
SoCal Border Avg. 2.635 to 3.500 --
SoCal Border - Blythe -- --
SoCal Border - Ehrenberg 3.500 to 3.500 --
SoCal Border - Kern River Station -- --
SoCal Border - Kramer -- --
SoCal Border - Needles 2.750 to 2.750 --
SoCal Border - Topock 2.635 to 2.635 --
SoCal Border - Wheeler Ridge -- --
Canada
Alliance (APC) - ATP -- --
Empress 2.315 to 2.365 --
NOVA/AECO C 2.180 to 2.280 --
Westcoast Station 2 2.060 to 2.205 --
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.