Markets

The devastation from Hurricane Harvey will be difficult to overcome, but the energy industry is making an effort to ease the pain by donating money and time to relief efforts along the Gulf Coast.

FERC has agreed to waive capacity release regulations and related tariff provisions to help facilitate the sale of Talen Energy Marketing LLC’s retail and wholesale natural gas trading business to an affiliate of NJR Energy Services Co.

Hurricane Harvey’s demand-killing impact on the natural gas market has been apparent since the Category 4 storm made landfall across the Texas coast late Friday, but things could turn decidedly more bullish — albeit temporarily — in the days to come as demand begins to creep higher while production remains offline, some analysts say.

Physical natural gas for delivery Wednesday on average gained, but the next-day market was highly skewed. Most points were down a few cents and Texas, Louisiana, the Midcontinent and Midwest on average all posted losses. The NGI National Spot Gas Average, however, rose 1 cent to $2.70, primarily on the backs of outsized gains in southern California prompted by an ongoing heat wave.

Because the Gulf Coast increasingly is the hub for natural gas exports and industrial demand, Hurricane Harvey may foretell what could occur in future natural disasters, according to Barclays Capital.

Tropical Storm Harvey as of Monday had curtailed about 1 Bcf/d from U.S. natural gas exports to Mexico, according to Genscape Inc.

Mexico’s first natural gas price index,released on Aug. 18, offers an initial but still limited view of prices in the deregulating natural gas market.

Physical natural gas prices for Tuesday delivery were all over the map Monday. Areas impacted by Tropical Storm Harvey moved a few pennies, but points in the Northeast and California showed stout weather-driven gains. The NGI National Spot gas average rose 13 cents to $2.69.

Mexico’s first natural gas price index,released on Aug. 18, offers an initial but still limited view of prices in the deregulating natural gas market.