Basis

As major expansions like the 3.25 Bcf/d Rover Pipeline and 1.7 Bcf/d Atlantic Sunrise approach full service, further growing Appalachian takeaway capacity, the wide basis differentials that once dogged the historically constrained Marcellus and Utica shale region are shrinking — a trend that could come into sharp relief this shoulder season.

Staff of the Federal Energy Regulatory Commission’s (FERC) Office of Enforcement (OE) said it has preliminarily determined that National Energy & Trade LP violated FERC’s Prohibition of Natural Gas Market Manipulation “by fraudulently trading physical basis at Texas Eastern M3 (Tetco M3) during the January 2012 bidweek to increase the value of its financial basis position.” OE staff alleges that Houston-based National Energy sold physical basis at Tetco M3 at arbitrarily low prices early in the morning to benefit a large short financial basis position acquired before bidweek, a large part of which it repurchased after making its physical basis sales. Staff also alleges that National Energy fraudulently traded physical basis at Henry Hub during the April 2014 bidweek to increase the value of its financial exposure, by trading physical basis after the close of the NYMEX solely to benefit its exposure to the Henry Hub Inside FERC index.

Physical natural gas for Tuesday delivery surged higher in Monday trading, with nearly all points followed by NGI posting solid double-digit gains and some locations adding as much as 20 cents or more. California points proved to be the day’s top gainers as restrictions and outages had traders utilizing all their tricks to move gas.

Energy-related carbon dioxide (CO2) emissions in the United States decreased in 2015 and were 12% below 2005 levels, according to a note published Monday by the Energy Information Administration (EIA).

Energy-related carbon dioxide (CO2) emissions in the United States decreased in 2015 and were 12% below 2005 levels, according to a note published Monday by the Energy Information Administration (EIA).

It was quite the week in natural gas forwards markets as prompt-month prices rose an average 17 cents between April 15 and 21 in the face of slowing production and long-term outlooks for warmer-than-normal weather, according to NGI’s Forward Look.

It was quite the week in natural gas forwards markets as prompt-month prices rose an average 17 cents between April 15 and 21 in the face of slowing production and long-term outlooks for warmer-than-normal weather, according to NGI’s Forward Look.

New natural gas pipeline projects coming online in recent months have helped to shrink Appalachian basis differentials, according to the Energy Information Administration (EIA).

Despite a full roster of planned and already constructed pipeline projects aimed at uncorking the glut of supply from the Appalachian Basin, the average basis of U.S. forward market locations covered byNGI’s Forward Look for the remainder of 2015 came in at negative 3.3 cents during trading on Aug. 19. Said differently, the average price of natural gas across the United States is expected today to be 3.3 cents less than the Henry Hub over the course of September, October, November and December 2015, and the gap is expected to get much wider before narrowing.