Monthly Archives: November 2013

Richard Meyer Natural Gas Market Indicators: November 27, 2013

Domestic daily consumption of natural gas for the nation often cruises along in the 80s (Bcf per day) only to spring above 100 Bcf per day on the coldest days in January and February when heating loads are accentuated. According to Bentek Energy LLC that already occurred on November 24 this winter heating season, as an early arctic blast blanketed much of the nation beginning on that date.

The recent cold weather has solidly turned storage injections into weekly withdrawals – exactly what supply planners would expect. At the same time flowing produced gas is at record or near record highs and imports from Canada even popped up to over 6 Bcf per day during the early season cold.

No major surprises here except for the vagaries of weather and temperatures. As a result, Henry Hub pricing popped up a little to about $3.80 per MMBtu and forward pricing through May 2014 remains at about that benchmark.

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.

Reader Notice

AGA is very grateful for the reader interest in our Natural Gas Market Indicators report, which is now marking the 216th issue published. Although we will continue to circulate the document twice per month via e-mail, a new look is in the works and new tools for you to forward the report to others are being developed. Please be on the lookout for initial changes in the format beginning January 2014. Our content and purpose will remain the same, which is to provide you a snapshot of critical natural gas industry developments from a local gas utility perspective. Thank you again for your interest in our market views and your readership.

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

Posted in environment, Natural Gas, people, weather, winter heating | Comments Off on Natural Gas Market Indicators: November 27, 2013

Adam Cloch AGA’s Incoming Chairman to Hold Media Roundtable Breakfast

The American Gas Association (AGA) will host a media roundtable breakfast next Friday, December 6 beginning at 9 a.m. with incoming AGA Chairman Gregg Kantor, president and CEO of NW Natural, and AGA President and CEO Dave McCurdy.

Gregg Kantor, President and CEO, at NW Natural’s new Sherwood Operations and Training Center, which provides field employees hands-on, scenario-based training.

Gregg Kantor, President and CEO, at NW Natural’s new Sherwood Operations and Training Center, which provides field employees hands-on, scenario-based training.

McCurdy and Kantor will discuss the vision for natural gas in 2014, as well as how natural gas is a solution for our economy and our environment. They will also address AGA’s legislative and regulatory priorities for the coming year. Presentations will be followed by an open question and answer session.

AGA will be livetweeting from the roundtable on our Twitter account @aga_naturalgas. Follow the conversation or join us using hashtag #AGAChairman.

All media inquiries and RSVPs should be sent directly to Christina Nyquist at cnyquist@aga.org.

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Richard Meyer Natural Gas Market Indicators: November 14, 2013

Working gas in underground storage is above 3.8 Tcf and recent days have demonstrated record volumes of gas production in the United States (67 Bcf per day). It looks like winter is just around the corner.

The current six-month forward strip at Henry Hub is consistently in the $3.60 range and on the consumption side overall demand is within six-tenths of one percent with that of last year. Sector demand has been redistributed with less gas to power generation and more to seasonal residential and small commercial loads compared to 2012.

So what’s next ladies and gentlemen? Why heating degree days, of course. How many, where they occur and how long they are sustained will, to a large extent, dictate the market during the 2013-2014 winter heating season.

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

Posted in Natural Gas, weather | Comments Off on Natural Gas Market Indicators: November 14, 2013

Adam Cloch Universities Making the Grade with Natural Gas

Communications & Marketing Department Intern Terence Edelman contributed to this story.

Universities around the country are looking for ways to reduce their carbon emissions and be more environmentally friendly.  To achieve this, many institutions are moving away from other fuels in favor of efficient, cleaner burning natural gas.

Oberlin College in Ohio has a plan to eliminate their carbon emissions by 2025. In order to achieve this goal the campus is transitioning to gas boilers for the next 12 years, at which point the college plans to switch to electric compressor technology. Their old coal burners, installed in the 1940s, will be taken offline next March and replaced with cleaner burning natural gas. Once the electric compressor technology is utilized, the natural gas plant will serve as a back-up system in the event of an electrical outage, unusually high needs and during maintenance periods.

Lock Haven University (LHU) in Pennsylvania has also found a good use for natural gas.  A university trolley used to transport students around campus was recently converted to run on compressed natural gas (CNG). LHU has other trolleys which burn diesel fuel and are much louder. University spokesperson Keith Roush said the college made the switch to clean, green CNG as a way to cut down on emissions. LHU officials have also stated that they are paying less for the CNG trolley and get comparable miles per gallon as the diesel fuel alternatives.

LHU CNG trolley

Photo Courtesy: Lock Haven University

The University of Colorado (CU) is taking advantage of low and stable natural gas prices and will use natural gas powered turbines to generate electricity and heat for the campus.  CU is developing a $91 million “campus utility system” project to renovate their existing power plant, enabling them to generate steam and electricity from natural gas, all while reducing carbon emissions.

“These enhancements to our power plants so that we can burn natural gas to create electricity will lower our carbon footprint significantly,” said Dave Newport, director of the university’s Environmental Center.

After analyzing a range of alternatives, Pennsylvania State University is converting its coal-powered steam plant to natural gas to upgrade and improve efficiency.  The steam plant, which was built in 1929, consumes 70,000 tons of coal each year. The university expects to recover the investment in the mechanical upgrades through the savings achieved from purchasing lower cost natural gas. To accommodate the increase in natural gas demand, Columbia Gas of Pennsylvania will upgrade its natural gas service to the plant by installing a new gas line across campus.

Universities across the country are taking advantage of affordable, clean and reliable natural gas to reduce their carbon footprints and improve the energy efficiency of their institutions. Let us know in the comments section below what you or your school is doing to embrace our nation’s clean, abundant supply of natural gas.

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