Daily natural gas volumes to power generation reached 36.8 Bcf on July 20, then 37.4 Bcf on July 28—both strong daily numbers. Previously, AGA reported that volumes of natural gas to power have also been peaking during winter months. With that said, the daily winter peak for gas-fired electricity in 2015 was 30 Bcf back in January. Overall, the power sector is the primary reason that demand in 2015 exceeds that of 2014. Average consumption of natural gas to power generation year to date has been 25.4 Bcf per day, which is 3.8 Bcf per day higher than in 2014.
As discussed previously in Market Indicators reports, structural changes in the national generation mix and market hub prices for natural gas below $3 per MMBtu help to account for the year over year difference. This year, in particular, power sector natural gas consumption has been impacted by record low hydro-generation in the Pacific Northwest, too.
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.