An early-season cold Canadian air mass and snowy, icy conditions from the northern plains to the middle Atlantic have pushed Henry Hub and prompt-month futures pricing to more than $4.25 per MMBtu. In addition, natural gas demand exceeded 115 Bcf on Sat., Dec. 7, 10 and 11 (the highest volume of consumption since Jan. 2013), which does happen periodically but not normally this early in the season.
Strong storage withdrawals have answered the call, but some production areas have been influenced by well freeze-offs. It has been a rather dynamic start to the 2013-14 winter heating season. Could the country actually experience a colder-than-normal winter from start to finish during the next four months? Time will tell.
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.
AGA is very grateful for the reader interest in our Natural Gas Market Indicators report, which is now marking the 217th 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.