natural gas prices

Shale gas development in western Maryland suffered a serious setback last weekend, after Gov. Larry Hogan declined to veto a bill calling for a two-year moratorium on hydraulic fracturing (fracking) in the state. The moratorium will take effect on Oct. 1.

Prices for physical natural gas to be delivered Thursday were quiet in Wednesday’s trading, with most points fluctuating within a few pennies of unchanged. Buyers for electrical power generation had little incentive to purchase incremental volumes as next-day peak power prices fell modestly. Overall, the National Spot Gas Average was down a penny at $2.29.

In a June 1 article titled “NatGas Imports From Canada Lowest Since 1995; Exports to Mexico Up” (see Daily GPI,June 1),NGI reported that Canadian natural gas exports to the United States shrank in 2014 to their smallest volume since 1995 as rival U.S. shale supplies grew, according to trade records kept by the U.S. Department of Energy. In fact, Canadian natural gas exports to the United States shrank in 2014 to their smallest volume since 1994. NGI regrets the error.

Venture Global Calcasieu Pass LLC is securing an additional 432 acres for its proposed liquefied natural gas (LNG) project in Cameron Parish, LA, parent company Venture Global LNG Inc. said. The project now has 938 acres available to it. “By nearly doubling the size of its land footprint, the Calcasieu Pass terminal and ancillary facilities have more flexibility in terms of access, buffer zone and construction laydown,” said William Wicker, CEO of Venture Global LNG. “This expansion also accesses excellent ship berthing, parking and office facilities, as well as land for other activities that will support project development.” The terminal could enter service as early as late 2019 (see Daily GPI,Dec. 10, 2014;Oct. 22, 2013).

The Pennsylvania Senate Environmental Resources and Energy Committee has voted unanimously for Gov. Tom Wolf’s nominee, John Quigley, to lead the state’s Department of Environmental Protection, which oversees the oil and gas industry (see Shale Daily,Jan. 14). The committee questioned Quigley for about two hours before handing the nomination to the full Senate, which must confirm Quigley. Chief among the committee’s concerns was Quigley’s ties to environmental advocacy group PennFuture, which has been critical of the oil and gas industry. Quigley dismissed those ties and said he stopped working as an adviser to the organization more than a decade ago.

Natural gas for Wednesday delivery slid by a few pennies in Tuesday’s trading as mild temperatures forecast for eastern metropolitan areas along with weak next-day power prices gave buyers little incentive to purchase incremental volumes.

Chevron Corp. has agreed to settle a wrongful death lawsuit filed last year by the family of a subcontractor killed in an explosion and fire at a three-well pad in southwest Pennsylvania, according to documents filed in the Allegheny County Court of Common Pleas. Under the settlement, which was approved by a judge, Chevron would pay $5 million, most of which would go toward a trust for the worker’s son. In February 2014, a natural gas leak at a Chevron site in Greene County caused an explosion and fire that raged for days (see Shale Daily,Feb. 11, 2014). The blast killed Ian McKee, 27, of Morgantown, WV, who was working on site for Cameron International. An investigation later revealed that human error likely caused the leak after it was discovered that a gland nut and lock screw assembly were ejected from the wellhead. The leaking gas caught fire when it reached hot equipment on the pad (see Shale Daily,Aug. 7, 2014).

The Pennsylvania Department of Environmental Protection (DEP), which oversees the state’s oil and gas industry, said Friday it would tweak its rulemaking process with improvements for public participation through a new online engagement system.

Bidweek sellers for June enjoyed hefty gains of a quarter or more as a broad rally encompassed all sections of the country with all but a handful of points enjoying stout double-digit gains. The NGI June Bidweek National Average surged 26 cents to $2.55, and no actively traded points suffered declines.