Natural gas to power generation this October has exceeded the volume from October 2014 by more than 2.5 Bcf per day and the gas share of generation has climbed 3 percent in most ISO/RTO regions despite total electric load remaining flat compared with October 2014. Higher incidence of coal to gas dispatch corresponds with year to date low Henry Hub prices as October comes to a close, reinforced by the evaluation of the national generation mix and structural changes to natural gas for electric power. Noting this evolution, big news in the industry came this week with the announcement of Duke Energy Corporation’s planned acquisition of Piedmont Natural Gas Company ($4.9 billion cash and $1.8 billion assumption of debt). This deal comes on the heels of Southern Company’s planned acquisition of AGL Resources. Among the many reasons put forward for the acquisitions is a broader recognition of the long-term potential for natural gas in the nation’s energy mix and the key role gas will continue to serve in the US clean energy economy.
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.
