Unlike last week, there were no bells or whistles Thursday morning as the Energy Information Administration (EIA) reported that 20 Bcf was removed from storage for the week ended Jan. 6. While the number was well within industry expectations, February natural gas futures ultimately broke below the psychological $9 level for the first time since the September contract did it in Aug. 2005, settling Thursday at $8.943, down 29.5 cents from Wednesday’s close.
Bells
Articles from Bells
Consultant: LNG Will Cut Transportation Values, Put Downward Pressure on Prices
Alarm bells should be ringing in the offices of pipeline companies and domestic producers as imported liquefied natural gas (LNG) is expected to grow to about 12% of annual U.S. gas supply in 2010 from only about 1-1.5% today. Such a dramatic increase in supply, coming into the market at brand new locations, will drive down pipeline transportation values and gas prices, according to analysis done by Wakefield, MA-based Energy Security Analysis Inc. (ESAI).
December 29, 2003
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