England

Next-day gas for Tuesday delivery generally eased in Monday trading as stout double-digit gains in New England were unable to counter broader setbacks at Midwest market points and producing zones.

Physical natural gas for Wednesday delivery had the trajectory of a safe falling from a 10-story building in Tuesday’s trading.

Physical natural gas for Thursday delivery on average gained ground in trading Wednesday, but declines in the Rockies and California had to be offset by healthy advances at New England points. The NGI National Spot Gas Average gained 4 cents to $2.73, but futures found the going more arduous.

A pro-energy/business group has released a study that warns New England is at risk for higher energy costs and price volatility than was thought a year ago. Energy project delays and cancellations, as well as new energy policies, could cause more economic harm through 2020 than previously estimated, it said.

Midstream players in New England all agree that the region’s recent winter price spikes are an issue, but they don’t all agree that new pipeline buildout is the most effective way to solve the peak demand riddle.

The Natural Gas Supply Association (NGSA) told FERC it opposes Algonquin Gas Transmission LLC’s request for a waiver of the Commission’s capacity release bidding requirements, arguing that such a move would harm the New England gas market.

In an encouraging sign for the future of shale gas development in the United Kingdom (UK), a county government in northern England has awarded a planning application to perform hydraulic fracturing (fracking) operations to an energy company with ties to Barclays plc.

For winter 2015/2016, trading at key points in New England didn’t see the same price spikes as in years past, but the underlying infrastructure constraints that have hampered the region on peak days could still lead to volatility in natural gas prices moving forward.

For winter 2015/2016, trading at key points in New England didn’t see the same price spikes as in years past, but the underlying infrastructure constraints that have hampered the region on peak days could still lead to volatility in natural gas prices moving forward.