Richard Meyer Natural Gas Market Indicators: September 29, 2017

September production is running among the highest monthly volumes ever for the lower-48. With the balance of Canadian and liquid natural gas (LNG) imports, total U.S. supply is up 1.8 Bcf per day this September over last year. Demand is up as well, but to a more modest degree. Higher exports have been offset by lower power burn.

Both supply and demand are poised to move into record territory as new infrastructure projects bring new supplies to new markets. Pipeline projects in Appalachia will continue to unlock constrained gas flows. Cove Point is likely to begin taking gas later this year. Amid this renewed strength in the market, supplies are robust and pricing remains low and relatively stable—a good sign for consumers as we head into the winter months.

Visit this link to download the full Natural Gas Market Indicators report. Topics covered in this week’s report include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Shale Gas, Rig Counts, Pipeline Imports and Exports, and LNG Markets.

Please direct questions and comments to Chris McGill at cmcgill@aga.org or Richard Meyer at rmeyer@aga.org.

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Jake Rubin Harvey and Irma Assessment

Hurricane Harvey satellite image - courtesy NOAA/NASA

Hurricane Harvey satellite image – courtesy NOAA/NASA

AGA is closely monitoring the impacts of Hurricanes Harvey and Irma and our thoughts are with all those who have been impacted by the destruction these natural disasters have caused. There will no doubt be a long road to recovery, and natural gas utilities in Florida and Texas, and beyond, are working tirelessly to help aid in that recovery.

During a disaster of the magnitude seen with both Harvey and Irma, natural gas utilities, first and foremost, look to confirm that all employees in the affected areas are safe and accounted for and to assess injuries or safety incidents. Thus far, we are getting positive reports from our members in the affected areas and seeing encouraging accounts in the media.

SNL Energy’s Sarah Smith reported on Tuesday afternoon that, “The gas utilities of the Southeast appear to have come through Hurricane Irma with minimal infrastructure damage despite the devastation wrought over large swaths of the region.”

Smith recounts positive news from Florida Public Utilities Co., Florida City Gas and South Carolina Electric & Gas Co.

E&E’s David Iaconangelo analyzes the impact of Hurricanes Harvey and Irma on the oil and gas industry. He spoke with Richard Kuprewicz, president of Accufacts Inc., who said in the lead-up to Irma’s landfall that pipelines were often designed “so they can run independently, like an island on their own.”

The piece goes on to note that, “Operators of the Gulfstream and Sabal Trail pipelines, which deliver natural gas from neighboring states to central Florida, said Irma had not interrupted service.”

It is still too early in the evaluation and recovery process to determine whether or not the planned resilience of the natural gas delivery system performed as intended.

In July, the Natural Gas Council, which collectively represents companies that produce, transport and deliver clean, affordable natural gas throughout the United States, released a joint report, “Natural Gas: Reliable and Resilient” that provides a practical guide to the operational measures, physical characteristics and contractual underpinnings of the natural gas system’s exceptional record of reliability and resilience.

Dave McCurdy, our President and CEO, said, “all along the natural gas supply chain, from production to end-use delivery, the industry employs a portfolio of tools to help ensure protection of its facilities from both and physical and cybersecurity threats.”

Our thoughts are with all those in Texas, Florida and other areas hit by these natural disasters for a safe and speedy recovery.

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Richard Meyer Natural Gas Market Indicators: August 31, 2017

Even though summer temperatures have been warmer than normal on average this year, natural gas volumes to power generation remain below 2016 levels (down 2.9 Bcf per day year-to-date). Growth in gas exports has not been able to offset lower demand in both the power sector and residential/commercial, the latter of which is down 1 Bcf per day this year after a relatively mild winter. The result is that total lower-48 consumption of natural gas has been 1.9 Bcf per day less year-to-date in 2017 compared to the same period in 2016, per Bentek Energy.

Unpredictable events such as Hurricane Harvey also have an impact on the natural gas supply-demand balance in the short run. Hurricanes often require temporary production shut-ins, as Harvey does, but these events can also lead to demand reductions through cooler temperatures via the storm and reduction of economic output such as reduced manufacturing or refining during the duration of the storm.

Visit this link to download the full Natural Gas Market Indicators report. Topics covered in this week’s report include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Shale Gas, Rig Counts, Pipeline Imports and Exports, and LNG Markets.

Please direct questions and comments to Chris McGill at cmcgill@aga.org or Richard Meyer at rmeyer@aga.org.

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Jackie Bavaro AGA Member Companies Commemorate 10th Anniversary of National 811 Day

This past Friday, August 11, marked the Common Ground Alliance’s (CGA)’s 10th commemoration of its annual 811 Day, which serves as a reminder to dial 811 before beginning any digging project.

Every six minutes an underground utility line is damaged because someone started a digging project without first calling 811. It’s required by law to dial 811 to mark the location of underground utilities and pipelines in your yard, whether you’re installing a fence, deck or swimming pool, planting a tree, or beginning any excavation project on your property. Once you’ve called 811, you will be connected to a local One Call Center which gathers information about your project and alerts your local utility company. Utility crews will come to your house to locate and properly mark the utility lines near the planned project to help you avoid those areas. The process is fast and free of charge.

As part of Call 811’s 10th anniversary celebration, AGA member companies educated their customers and the communities they serve about the importance of calling 811 before digging. The following highlights showcase many of the activities AGA members and partners participated in to help spread this important message:

On Friday, Washington Gas partnered with Pipeline and Hazardous Materials Safety Administration for its annual National Call 811 Day at Nationals Park to promote calling 811 and the importance of safety.

nats game

CGA President and CEO Sarah Magruder Lyle joined Pacific Gas & Electric in ringing the New York Stock Exchange closing bell along with a coalition of damage prevention stakeholders, reminding the public to #Call811 before digging on the 10th anniversary of 811 day.

CGA stock

CenterPoint Energy in Houston, TX hosted a downtown block party complete with food and prizes, while the utility’s Minnesota branch teamed up with line marking companies for the third annual 811 5k Run/Walk followed by a kids fun run, awards ceremony, prizes and safety fair. All proceeds from the 5k benefitted Operation Warm, an organization that provides warm winter coats to children in need.

5K

Atmos Energy kicked off National 811 Day by providing pipeline safety training to the City of Waxahachie, TX. In Ellis County, TX, Atmos has seen a 47 percent increase in requests by the public to have underground natural gas lines marked since 2008. Atmos was able to locate 2.1 million underground natural gas lines in 2016, alone.

atmos

Elizabethtown Gas participated by putting together an educational video on why you should call 811 before you begin digging a project.

According to CGA, data shows that when you call 811 before digging, you have less than a 1% chance of striking a buried line. Making a call to 811 is the easiest way to make sure you are keeping your communities safe and connected.

In addition to 811 Day, the month of April is National Safe Digging Month. As part of their ongoing commitment to safety, AGA member companies do a great deal of work to promote safe digging. If you are a natural gas utility, let us know about your activities to promote calling 811 and safe digging in the comments section below or by emailing jbavaro@aga.org. We’d love to hear what your utility has in the works and to share your activities on AGA’s social media pages and blog.

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