Story of the Week

Piercing Cold on Tap Drives Northeast-Led Rally for Natural Gas Forwards
NGI Weekly Intel
A rebound in natural gas forward prices that began last week kicked in high gear during the Jan. 10-16 period as frigid air finally returned to the United States after a month-and-a-half of exceptionally mild weather. Read More
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NGI Weekly Newsletter

January 21, 2019

Earthstone to Run One Rig in 2019, Eyes Free Cash Flow Neutrality in 2020

Earthstone Energy Inc., a Texas-based independent focused on the Permian Basin’s Midland sub-basin and the Eagle Ford Shale, said it plans to run a one-rig operated drilling program in 2019, as it looks achieve free cash flow neutrality in 2020.

New York Governor Details Plans for Green New Deal

New York Gov. Andrew Cuomo this week unveiled additional details about plans to launch a “Green New Deal” aimed at eliminating carbon emissions and furthering his administration’s efforts to battle climate change.

FERC Investigating Three Interstate Natural Gas Pipe Rates; Nine Probes Dropped

Investigations and hearings have been ordered by FERC into three interstate natural gas pipeline companies to determine if they overcharged customers in recovering costs of service. Nine similar proceedings were terminated without any further action.

Atlantic Bridge Advances After Massachusetts OKs Key Compressor Station

Massachusetts regulators have issued a critical air quality permit for Algonquin Gas Transmission LLC's Atlantic Bridge project, removing a longtime roadblock for the project designed to add natural gas pipeline capacity from Appalachia to New England and Eastern Canada.

Invenergy’s Massive Gas-Fired Power Plant Online in Pennsylvania

Invenergy said this week its 1,485 MW combined-cycle natural gas-fired power plant in northeast Pennsylvania has entered service.
Daily-Prompt-Month-Algonquin-Citygates-Forward-Fixed-Prices-20190117

Piercing Cold on Tap Drives Northeast-Led Rally for Natural Gas Forwards

A rebound in natural gas forward prices that began last week kicked in high gear during the Jan. 10-16 period as frigid air finally returned to the United States after a month-and-a-half of exceptionally mild weather.
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North Dakota Considers Underground Natural Gas Storage to Cut Flaring

If various regulatory and economic hurdles can be overcome, storage of produced natural gas through...
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KMI’s Contracts with PG&E a Concern in Otherwise Strong Year for Midstreamer

Kinder Morgan Inc. (KMI) said Wednesday that the impending bankruptcy filing of California’s PG&E Corp. could impact...

Reduced Permian E&P Activity Could Impact Crude Takeaway Plans

With wishy washy oil prices slip sliding and some onshore producers trimming their capital spending for 2019, concern is rising that some of the planned crude takeaway projects in the Permian Basin could be shaky.

BP Canada Narrows Focus in Scotian Deepwater Exploration Campaign

BP plc’s Canadian unit has narrowed its deepwater exploration campaign offshore of Nova Scotia by cutting the license area in half, but the oil major still holds drilling rights to 7,000 square kilometers (2,800 square miles) of Atlantic seabed.

MVP Property Rights Case Reaches U.S. Supreme Court

The U.S. Supreme Court is expected to decide this week whether it will hear a case challenging the Mountain Valley Pipeline (MVP) and the constitutionality of parts of the Natural Gas Act (NGA).

Oil, Gas Industry Increasingly Nervous as Government Shutdown Drags On

Representatives from the oil and gas industry are beginning to worry that the partial shutdown of the federal government, now the longest in U.S. history, could impact drilling on federal lands and blunt permitting for infrastructure, including pipelines and liquefied natural gas (LNG) export facilities.
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Trade Union Boss Could Hinder Pemex Evolution, Analysts Warn

Carlos Romero Deschamps, who has led the trade union of Mexico’s indebted state-owned Petroleos Mexicanos (Pemex) for nearly three decades, could potentially hinder efforts to return the oil and gas producer to its glory days if swirling rumors of corruption and nepotism against him are true, analysts warn.

PG&E Preparing for Many Legal Skirmishes; Credit Sinks to Junk

The major credit rating agencies now rate PG&E Corp. and its utility below investment grade at  junk status, and in a regulatory filing the Northern California operator said it is facing significant additional legal filings related to last November's devastating Camp Fire.
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Bakken Oil, Gas Output in North Dakota Seen on Decline in Early 2019

Oil and natural gas production volumes in North Dakota’s portion of the Bakken Shale slumped...
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U.S. Natural Gas Storage Said Still Viable, with Exports Offering New Opportunities

Natural gas storage used to be a must for the Lower 48, but abundant onshore supply has upended the market...
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EIA's 2019 Henry Hub Price Forecast Slips to $2.89; Little Relief Seen in 2020

Domestic natural gas production growth is expected to keep pace with demand and exports this year, and inventories will build faster than the five-year average, keeping a lid on Henry Hub prices, which are expected to average just $2.89/MMBtu in 2019, according to the Energy Information Administration.
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China’s U.S. LNG Imports Tanked in 4Q; Rebound Seen on Long-Term Supply Deal

China imported only two of the 69 liquefied natural gas cargoes sent from the United States in the fourth quarter of 2018, a dramatic fall from the 14 U.S. cargoes it imported a year earlier after a trade war erupted last fall, according to Genscape Inc.’s proprietary monitoring data.

U.S. Energy Bankruptcies Down Sharply, but Low Commodity Prices Signal Caution

The wave of bankruptcies that swept across the U.S. oil and gas industry in 2015 and 2016 has ebbed, but the recent slump in commodity prices points to caution signs ahead, according to Haynes and Boone LLP.

Millions Available for Oil, Natural Gas Recovery Enhancements, Says DOE

The U.S. Department of Energy’s (DOE) Office of Fossil Energy is offering up to $88 million total in research and development grants for projects to improve enhanced oil recovery (EOR) and unconventional oil and natural gas production.

Colorado Supreme Court Rules for Oil, Gas Regulators in Public Health Lawsuit

The Colorado Supreme Court on Monday ruled in favor of state regulators about how much weight needed to be given to public health and environmental concerns.

Poland Boosts U.S. LNG Imports in 2018 as Russia’s Supply Role Wanes

Poland’s efforts to reduce its energy dependence on a single supplier continued in 2018, with natural gas imports from Russia slipping more than 6% from 2017 levels as liquefied natural gas (LNG) imports from Qatar, Norway and the United States jumped by nearly 60%, state-owned oil and gas company Polskie Gornictwo Naftowe i Gazownictwo S.A. (PGNiG) said Wednesday.
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Haynesville’s Soaring Natural Gas Output Said Sustainable as LNG Exports Grow

Natural gas production in a former darling of the onshore unconventionals, the Haynesville Shale, is getting serious looks from new suitors, including operators looking for export stores, with production on course to hit record heights, according to Rystad Energy.

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U.S. Adds Four Natural Gas Rigs but Oil Drilling Declines, Says BHGE

The U.S. natural gas rig count added four units to climb to 202 for the week ended Friday (Jan. 11) as domestic oil-directed drilling activity slowed slightly, according to data from Baker Hughes, a GE Company.
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Chevron, Oxy Invest in Unique Carbon Capture Technology

Chevron Corp. and Occidental Petroleum Corp. are tackling carbon emissions head on, with a joint equity investment in Canada-based Carbon Engineering Ltd.

People

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Southern Star Launches Nonbinding Open Season For Pair of SCOOP/STACK Projects

Southern Star Central Gas Pipeline Inc. announced a nonbinding open season to gauge interest in two potential projects designed to serve Oklahoma's stacked plays in the Midcontinent, including expanded market access through the Natural Gas Pipeline Company of America LLC (NGPL) pipeline system.

Alberta Urges Swift Aid for Ailing Canadian Natural Gas Producers

A year of gutted prices and revenues, described as “crushingly low” by industry, has prodded the government in Canada’s top natural gas supplying province into going to bat for struggling producers.

Trump Administration Asks Supreme Court to Rule on Clean Water Act Cases

In a pair of court cases being watched by the oil and gas industry, the Trump Administration asked the U.S. Supreme Court to decide whether pollution that moves through groundwater before contaminating federally protected waterbodies constitutes a violation of the Clean Water Act.
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South Texas VLCC Project to Export Oil Gains Momentum as $92M Contract Awarded

As midstream companies like Enbridge Inc. begin racing to develop deepwater export terminals along the...
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McNamee, FERC to Consider Recusals 'On a Case-by-Case Basis'

Commissioner Bernard McNamee has already recused himself from the docket of the Department of Energy's controversial 2017 notice of proposed rulemaking and is apparently considering taking similar action regarding FERC's ongoing examination of the resilience of the nation's power grid.
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Natural Gas Forwards Bounce Back as Cold Returns to Forecasts, Demand Increases Post-Holiday

After five straight weeks of steep declines, natural gas forward prices stabilized and even posted a modest overall gain for both February and March contracts, while summer and next winter prices were up by the double digits, according to NGI’s Forward Look.

Quantum Computing Potential Draws ExxonMobil into Partnership with IBM

ExxonMobil Corp. is partnering with IBM to advance the use of quantum computing to develop next-generation energy and manufacturing technologies.
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Always Reliable Anadarko Basin Still Holds Plethora of Resources, Says IHS Markit

Oklahoma’s Greater Anadarko Basin, a reliable conventional producer since the 1950s, holds an estimated 16 billion bbl of oil and more than 200 Tcf of natural gas in unrisked, technically recoverable resources within its unconventional reservoirs, according to IHS Markit.

3D"Sign

NGI's Bidweek Alert Day 5 - December 28th for January 2019
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 -- -0.1100 to -0.1100
Texas Eastern S. TX -- -0.1075 to -0.0900
Transco Zone 1 -- -0.1000 to -0.0700
East Texas
Carthage -- -0.1850 to -0.1850
Houston Ship Channel 3.700 to 3.710 0.1500 to 0.2700
Katy -- --
NGPL TexOk -- -0.2800 to -0.2400
Tennessee Zone 0 North -- --
Texas Eastern E. TX -- -0.1900 to -0.1900
Transco Zone 2 -- --
West Texas/SE New Mexico
El Paso Permian 1.750 to 3.350 --
El Paso - Keystone Pool 1.750 to 2.160 --
El Paso - Plains Pool 3.200 to 3.350 --
El Paso - Waha Pool 2.000 to 2.050 --
Transwestern 2.130 to 2.130 --
Transwestern - Central -- --
Transwestern - W. TX 2.130 to 2.130 --
Waha 1.100 to 2.050 --
Midwest
Alliance -- --
ANR ML7 -- --
Chicago Citygate 3.945 to 4.160 0.2200 to 0.2500
Chicago - Nicor Gas 3.945 to 4.160 0.2300 to 0.2500
Chicago - NIPSCO 3.965 to 4.100 0.2200 to 0.2200
Chicago - North Shore -- --
Chicago - Peoples 3.980 to 3.980 --
Consumers Energy -- -0.0800 to -0.0200
Dawn 3.180 to 3.280 -0.0400 to 0.2500
Emerson -- 0.1700 to 0.2800
Joliet -- --
Lebanon -- --
Michigan Consolidated 3.350 to 3.350 -0.2050 to -0.1250
NGPL Amarillo Mainline -- --
Parkway/Union -- 0.1100 to 0.3200
REX Zone 3 Delivered -- -0.1900 to -0.1300
REX into ANR - Shelby -- -0.1400 to -0.1300
REX into MGT - Edgar -- --
REX into NGPL - Moultrie -- -0.1900 to -0.1500
REX into PEPL - Putnam -- --
REX into Trunk - Douglas -- --
Midcontinent
ANR SW 3.150 to 3.415 -0.2500 to -0.2500
Enable East -- -0.0800 to -0.0800
Enable West -- --
NGPL Midcontinent 2.850 to 2.850 -0.6900 to -0.5300
Northern Border Ventura 3.950 to 4.100 --
Northern Natural Demarc 3.450 to 3.720 -0.1400 to -0.1000
Northern Natural Ventura 4.500 to 4.500 0.4500 to 1.1500
OGT -- -0.5500 to -0.4200
Panhandle Eastern 3.030 to 3.395 -0.5000 to -0.4300
Southern Star -- -0.3500 to -0.3200
North Louisiana/Arkansas
Perryville -- --
Texas Eastern, M1, 24 -- --
Texas Gas Zone 1 -- -0.1800 to -0.1500
Trunkline Zone 1A -- -0.1900 to -0.1600
South Louisiana
ANR SE -- -0.0900 to -0.0700
Columbia Gulf Mainline -- -0.1800 to -0.1600
Columbia Gulf onshore -- --
Florida Gas Zone 2 -- --
Henry Hub -- 0.0025 to 0.0200
Southern Natural -- -0.0475 to -0.0400
Tennessee Line 500 -- -0.0600 to -0.0500
Tennessee Line 800 -- -0.1050 to -0.0750
Texas Eastern E. LA -- -0.1500 to -0.1200
Texas Eastern W. LA -- -0.0850 to -0.0850
Texas Gas Zone SL -- --
Transco Zone 3 -- -0.0300 to -0.0200
Trunkline E. LA -- --
Trunkline W. LA -- --
Southeast
FGT Citygate -- --
Florida Gas Zone 3 -- 0.0000 to 0.0200
Texas Eastern M-1, 30 -- --
Transco Zone 4 -- -0.0025 to 0.0025
Transco Zone 5 -- 3.5000 to 3.8500
Transco Zone 5 North -- --
Transco Zone 5 South -- 3.5000 to 3.8500
Appalachia
Columbia Gas -- -0.2700 to -0.2300
Dominion North -- --
Dominion South -- -0.3800 to -0.2775
Leidy Hub -- --
Millennium East Pool -- -0.3100 to -0.2000
Tenn Zone 4 200L -- -0.1850 to -0.1600
Tennessee Zn 4 313 Pool -- -0.2900 to -0.2300
Tennessee Zn 4 Marcellus -- -0.3650 to -0.2500
Texas Eastern M-2, 30 Delivery -- --
Texas Eastern M-2, 30 Receipt -- -0.4000 to -0.2800
Texas Eastern M-3, Delivery -- 2.7500 to 3.5000
Texas Eastern M-3, Receipt -- --
Transco-Leidy Line -- -0.3200 to -0.2000
Northeast
Algonquin Citygate -- 5.2500 to 6.0000
Algonquin Citygate (non-G) -- 5.2500 to 6.0000
Algonquin Receipts -- --
Iroquois Zone 2 -- 4.5000 to 5.2500
Iroquois, Waddington -- 1.5000 to 1.5000
Niagara -- --
Tenn Zone 5 200L -- --
Tenn Zone 5 200L East -- --
Tenn Zone 5 200L West -- --
Tenn Zone 5 300L -- --
Tenn Zone 6 200L -- 5.8000 to 6.0000
Tenn Zone 6 200L North -- --
Tenn Zone 6 200L South -- 5.8000 to 6.0000
Tenn Zone 6 300L -- --
Transco Zone 6 non-NY -- 3.2750 to 3.7000
Transco Zone 6 non-NY North -- 3.2750 to 3.7000
Transco Zone 6 non-NY South -- --
Transco Zone 6 NY -- 4.5000 to 5.0000
Rocky Mountains
Cheyenne Hub 3.220 to 3.530 --
CIG 3.520 to 3.550 --
CIG DJ Basin -- --
El Paso Bondad -- --
El Paso San Juan 3.170 to 3.410 --
Kern River 4.100 to 4.530 --
Kingsgate -- --
Northwest S. of Green River 3.200 to 3.600 --
Northwest Sumas 4.150 to 6.950 --
Northwest Wyoming Pool 4.440 to 4.460 --
Opal 4.000 to 4.680 --
Questar -- --
Stanfield 4.400 to 4.400 --
Transwestern San Juan -- --
White River Hub 3.500 to 3.600 --
Arizona/Nevada
El Paso S. Mainline/N. Baja 4.300 to 4.500 --
Kern Delivery -- --
California
Malin 3.950 to 4.650 --
PG&E Citygate 4.020 to 4.750 --
SoCal Citygate 7.000 to 8.450 --
Southern Border, PG&E 3.500 to 3.700 --
Southern Border, SoCal 3.800 to 4.400 --
SoCal Border Avg. 3.800 to 4.400 --
SoCal Border - Blythe -- --
SoCal Border - Ehrenberg 3.800 to 4.400 --
SoCal Border - Kern River Station -- --
SoCal Border - Kramer -- --
SoCal Border - Needles -- --
SoCal Border - Topock -- --
SoCal Border - Wheeler Ridge -- --
Canada
Alliance (APC) - ATP -- --
Empress 3.790 to 4.585 --
NOVA/AECO C 1.465 to 1.860 --
Westcoast Station 2 0.800 to 0.810 --
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.