Richard Meyer Natural Gas Market Indicators: July 28, 2016

Nearly 10 U.S. nuclear reactors have announced intent to retire through 2019. The nearly 9 GW of nuclear capacity these plants represent has a gas burn equivalent of 1.35 Bcf per day, according to estimates from Bloomberg New Energy Finance. This represents the potential upside for natural gas as it fills the gaps created by the shuttering nukes.

Looking at the more immediate, natural gas to power generation reached 41 Bcf per day at times during July. When that occurs net storage injections are usually reduced and daily volumes of added working gas fall into low single digits. Even for a day or two national inventories can indicate as much gas coming out of storage as going in or even a net withdrawal (estimated small net withdrawal by Bentek Energy for July 25).

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 #FuelingOurCommunities: Helping Those in Need

Natural gas utilities across our country continue to make impressive strides when it comes to #FuelingOurCommunities. Not only are our member companies committed to delivering natural gas safely and reliably to the more than 177 million Americans who depend on it, they also place great pride in their commitment to service for every member of their communities. This month we are spotlighting Consumers Energy and its inspiring effort to combat homelessness and extend a helping hand to those in need.

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Consumers Energy volunteers participating in West Michigan United Way’s Food from the Heart initiative.

In June, Consumers Energy welcomed 184 new and returning interns at their annual summer luncheon. In order to provide a true understanding of the philanthropic nature that exists at the company, interns are encouraged to take part in Consumers Energy 9th annual Intern Challenge, a month-long service project designed specifically for interns to give back to their local communities throughout the state. This year, interns volunteered at a variety of nonprofit organizations including Habitat for Humanity, Kalamazoo Loaves and Fishes, Jackson Interfaith Shelter and Heart of West Michigan United Way, participating in the Food from the Heart Initiative. Participants remarked on how rewarding they found this initiative; last year, interns collected 3,500 items for food pantries and assembled 130 ready-to-prepare meals that fed 260 people eligible for assistance across Kalamazoo County.

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Consumers Energy co-workers and interns building houses to support Michigan’s Habitat for Humanity.

In addition, in 2015, Consumers Energy raised more than $215,000 to go towards Michigan nonprofits on behalf of its 547 volunteers. Specifically, the company provided more than $105,000 to 30 higher educational institutions, 16 community foundations, 55 local food banks and 14 homeless shelters. Since 2001, Consumers Energy has contributed more than $955,000 to Habitat for Humanity and pledged an additional $200,000 from the Consumers Energy Foundation for its neighborhood revitalization initiative. The company believes this is a solid foundation for a long-term investment in improving the communities they work and live in.

AGA commends the remarkable efforts Consumers Energy is making to help their communities become a more vibrant and welcoming place. Please use the hashtag #FuelingOurCommunities to highlight how you and your company are giving back so we can promote your good work on our social media channels. Next month, we will be highlighting volunteer efforts geared toward taking care of the environment. Please share your initiatives with us to be featured on the True Blue Natural Gas blog.

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Lisa O'Leary Natural Gas Utilities Build Bikes for Local Children During Republican National Convention

IMG_0784Employees from the American Gas Association (AGA) and member utility Dominion teamed up to build bicycles for children in need in Cleveland, Ohio during the Republican National Convention. Thirty area children were selected to receive bicycles through the Rainey Institute, a 112-year-old cultural arts education organization located near Dominion East Ohio’s headquarters.

IMG_0790“We are in the midst of a national conversation about the future of this country and for natural gas utilities those relationships begin in our local communities,” said Dave McCurdy, AGA President and CEO. “All politics is local and our priority remains delivering energy safely and reliably to homes and businesses throughout this country.”

“Natural gas utilities deliver essential energy to more than 177 million Americans and are a true partner in the communities they serve,” said AGA Chairman Ralph LaRossa. “It is at the heart of everything we do and we wanted to make that spirit a part of our time in Cleveland.”

IMG_0788The bike building kits were supplied by Bikes for Goodness Sake, an organization AGA has partnered with during past Operations and Engineering Conferences. Dominion and AGA hosted the youngsters on Wednesday morning to receive their brand new bicycles and helmets.

AGA and Public Service Electric & Gas Company will hold a similar event in Camden, New Jersey during the Democratic National Convention next week. Stay tuned for photos from the upcoming event on the blog and AGA’s social media pages.

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Chris McGill Natural Gas Market Indicators: July 15, 2016

Natural gas prices tested the $3 per MMBtu mark for prompt-month futures at the end of June, but have retreated back about $0.25 given strength in storage inventories and a stubborn daily production rate that seems resistant to sustaining itself below 70 Bcf per day. However, the storage supply overhang is beginning to shrink as, of course, it should, while the net injection season progresses toward “operationally full” or perhaps even a new inventory record.

Since the beginning of the fourth week of May, the country has seen seven straight weeks of warmer than normal temperatures and thus, more cooling degree days than normal. In fact, as of the beginning of July, cooling degree days were running 18.6 percent above average with the cumulative counts 38 percent higher or more in the New England and Middle Atlantic regions. Only the West South Central region at 8.4 percent warmer was cumulatively below 14 percent warmer than normal among all regions of the country.

Clearly, as natural gas has fed power generation loads associated with the warmer temperatures, a more closely balanced supply and demand picture has emerged this summer coupled with small decreases in domestic production. The current 14-day temperature outlook from the National Oceanographic and Atmospheric Administration shows warmer than normal conditions continuing with the exception of the Pacific Northwest, which is expected to be cooler.

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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