Natural gas futures floundered back into freefall Wednesday – the case of a majority of trading sessions early in the new year – as production climbed, benign weather persisted and the market braced for an anemic storage withdrawal. At A Glance: Prompt month sheds 27.5 cents Production hits 102 Bcf/d Weather forecasts wobble After a…
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West Natural Gas Forward Prices Rise, Northeast Sinks in Tale of Two Coasts
A divergence in natural gas prices occurred along the forward curve from Jan. 5 through 12, with a relentless stretch of winter weather leading to a recovery in West Coast prices, while springlike conditions on the East Coast sent prices lower there. February fixed prices ultimately averaged 65.0 cents higher through the period, while the…
California Resources Expanding CCS Efforts with Offtake Agreement
California Resources Corp. (CRC) kicked off 2023 with an agreement to sequester carbon dioxide (CO2) from Grannus LLC’s blue ammonia and hydrogen project. The Carbon Dioxide Management Agreement (CDMA) by CRC subsidiary Carbon Terravault Holdings LLC (CTV) stipulates that it would provide infield transportation to offtake CO2 produced from the Grannus project. The project is…
Warm January Drags Natural Gas Forwards Lower, with West Coast Leading Way
Natural gas forward prices continued to plummet during the trading period from Dec. 29-Jan. 4, this time taking West Coast markets along for the ride lower, NGI’s Forward Look showed. After bucking the down trend that began in the final week of 2022, West Coast markets led the price declines across the Lower 48 even…
Winter Weather Sends Western Natural Gas Forward Prices Soaring
Winter volatility saw Western natural gas forward hubs post huge gains during the Dec. 15-21 trading period, while expectations for a very mild start to 2023 drove deep discounts elsewhere in the Lower 48, NGI’s Forward Look data show. With intense Arctic cold diving from the Northwest into the heart of the Lower 48, spot…
Natural Gas Forwards Race Higher Out West, But Deep Discounts for Rest of Lower 48
Soaring premiums along the West Coast and deep discounts for the rest of the Lower 48 produced a week of varied price action for regional natural gas forwards during the Dec. 1-7 trading period, NGI’s Forward Look data show. Amid reports of a curtailment in volumes flowing through Gas Transmission Northwest’s (GTN) Kingsgate location along…
Perfect Storm Fuels Massive Natural Gas Price Spikes on West Coast; Northern California Hits $55/MMBtu
Against a backdrop of mostly mild weather across the Lower 48, winter unleashed its fury on the West Coast a bit early this season. The frigid temperatures and unusually heavy precipitation have fueled natural gas demand at a time when storage inventories are low, a drought has reduced hydro-electric power supplies and regional utilities are…
Another California County Bans Natural Gas Hookups ‘Beyond State Code’
Residents with new homes in 2023 in Marin County, CA will do their cooking with electric appliances after the Board of Supervisors in November voted to ban natural gas hookups in new buildings. The county, a peninsula sandwiched between the Pacific Ocean and San Francisco Bay, is expected to adopt Ordinance No. 3776 in January.…
As LA Bans New Oil, Natural Gas Drilling, Newsom Proposes Penalties for Industry Price Gouging
The Los Angeles City Council voted unanimously early this month to enact a ban on all new oil and natural gas drilling in every zone across the city and create a 20-year timeline to phase out exploration and production (E&P) at existing wells. City Planning Case (CPC) 2022-4864-CA amends the Los Angeles Municipal Code (LAMC)…
PG&E’s Diablo Canyon Gains Funding to Extend Life for California’s Last Nuclear Plant
The Department of Energy (DOE) has conditionally awarded $1.1 billion in federal funding to Pacific Gas and Electric Co. (PG&E) to support extending operations at California’s last remaining nuclear power plant. PG&E’s 2.2 GW Diablo Canyon Power Plant (DCPP) in San Luis Obispo County provides about 17% of California’s carbon-free electricity and 8.6% of the…