Projected

While one analyst team sees a 50% chance for a late-summer gas price collapse, another warned last week that a projected 250 Bcf year-over-year storage deficit at injection season’s end could set the stage for Henry Hub price spikes, given the continued dearth of incremental liquefied natural gas (LNG) supplies available to the United States.

Twenty years ago, when the Colorado Oil & Gas Association (COGA) welcomed the energy industry to its first trade show in Denver, projected recoverable natural gas resources in the Rocky Mountains were estimated at around 100 Tcf. Today the Rockies hold estimated proved reserves of around 87 Tcf and a remaining recoverable potential of 228 Tcf, but as industry veterans noted Thursday, nobody yet knows the true size and nature of the gas potential.

While one analyst team sees a 50% chance for a late-summer gas price collapse, another warned this week that a projected 250 Bcf year-over-year storage deficit at injection season’s end could set the stage for Henry Hub price spikes, given the continued dearth of incremental liquefied natural gas (LNG) supplies available to the United States.

Rockies Express Pipeline LLC’s (REX) projected time frame — early February — for completing the remainder of its western leg known as REX-West has come and gone.

Rockies Express Pipeline LLC’s (REX) projected time frame — early February — for completing the remainder of its western leg known as REX-West has come and gone. The company now expects the remaining 213 miles of the REX-West project, running eastward from an ANR Pipeline interconnect in Brown County, KS, to Panhandle Eastern Pipe Line (PEPL) in Audrain County, MO, to be in service some time in March.

With its projected linepack threatening to sink well below minimum target levels, Pacific Gas & Electric made a belated declaration of a systemwide Stage 2 low-inventory OFO for Wednesday on its California Gas Transmission system and extended the OFO through at least Thursday. The penalty for exceeding a negative daily imbalance tolerance of 5% was set at $1/Dth on both days.

Citing the weather forecast and projected demand on its system, Southern Natural Gas declared that the Savannah Line and Cypress Line delivery groups were subject to an OFO Type 3 Level 2 Monday until further notice. Such an OFO indicates that daily demand exceeds capacity. Penalties of $15/Dth were set for “any shipper whose allocated deliveries at any delivery point(s) within the groups…exceed 102% of their daily entitlement at such delivery point,” Southern said.

North American natural gas demand is projected to increase from 66 Bcf/d in 2006 to 81 Bcf/d in 2015, as an abundance of lower-cost liquefied natural gas (LNG) floods the market driving down prices, according to a recent report by Ziff Energy. A continued expansion of U.S. LNG imports from all parts of the globe could reach the point where “you had better have world peace or you will be bombing your own natural gas suppliers.”

North American natural gas demand is projected to increase from 66 Bcf/d in 2006 to 81 Bcf/d in 2015, as an abundance of lower-cost liquefied natural gas (LNG) floods the market driving down prices, according to a recent report by Ziff Energy. A continued expansion of U.S. LNG imports from all parts of the globe could reach the point where “you had better have world peace or you will be bombing your own natural gas suppliers.”