Natural Gas
Henry Hub, regional basis, storage, LNG feedgas and power burn.
Natural Gas Is Losing Demand Fast
Natural gas has quickly lost the demand it gained during hot weather this summer. This new dynamic means the power market is desperate for gas as fuel on b...
· Jay Stevens3 min read
New Inflation Legislation Could Lead to Approval of Mountain Valley Pipeline
Inflation and political bargaining over new legislation may finally be what leads to the completion of the long-awaited Mountain Valley pipeline. &nbs...
· Christian Drolshagen4 min read
Waha Winter Basis Rebounds; Midstreamers Expanding
May 23, 2022 - As shown in the chart below, the Waha basis for Winter ‘23/’24 was near -40c at the beginning of the year, and as of mid...
· Rishi Rajanala2 min read
Haynesville Basis Deteriorates; Production Rising?
Columbia Gulf Mainline, a major basis location in north-central Louisiana, has been moving lower, despite hot weather rolling into the South Central region...
· Matt Marshall3 min read
Appalachian Gas to Remain Stymied as MVP Further Delayed
Equitrans Midstream revised the Mountain Valley Pipeline (MVP) project’s in-service to 2H 2023. The delay will effectively limit Appalachian natural ...
· Jay Stevens2 min read
Haynesville-Area Basis Slides; Summer More Vulnerable
Prices across the so-called Haynesville play in northwestern Louisiana and northeastern Texas have been rising, but the basis discounts have expanded. ...
· Matt Marshall2 min read
Henry Hub Prices Soar; Gas Market is Under-Supplied, Lacks Inventories
Gas supplies for next winter will be dangerously low if demand does not catch up; it is out of balance with supply. The market is trying to balance price a...
· Nick Hillman5 min read
Waha Basis Under Threat As Constraints Loom
Gas basis prices in the Permian Basin have moved lower over the past 12 months. Further price deterioration depends on the actual and perceived pace of…
· Jay Stevens3 min read
Why Did Your Natural Gas Hedges Hurt You in February?
Nymex and Inside FERC gas settlement prices made a rare move on Jan 27; It upset portfolios that had 'incomplete' hedges When mark...
· Matt Marshall5 min read
Hedge Settlements Are Affected by Jan 27 Settlement-Day Rally in Gas
Was it manipulation, a short squeeze, or real buyers? February 2022 NYMEX natural gas futures expired and settled at $6.265 on Thursday, up $1.988 on the d...
· Matt Marshall4 min read
Natural-Gas Fired Power Generation to Fall in 2022
According to the EIA, gas as a percentage of total generation will fall from 37% in 2021 to 35% in 2022. There are two reasons behind the decline in natura...
· Nick Hillman2 min read
Is Winter Over? No, But Gas Scarcity Is No Longer Likely
This winter's natural gas prices have plunged. Mild weather has severely reduced gas demand. The 1Q2022 strip has been the hardest hit, nosediving ab...
· Jay Stevens3 min read
Canadian Regulatory Agency Denies Enbridge Mainline Contracting Proposal
Enbridge has been denied it's request to convert the Mainline from uncommitted service to firm service. The Canadian Energy Regulator (CER) ru...
· AEGIS Market Analytics2 min read
We are in for a tight winter for natural gas, high demand is not backing down
Matt Marshall, AEGIS Director of Market Analytics, was on BNN Bloomberg to discuss natural gas prices as they fall off recent highs and hit seven-week lows. Marshall says stagnating production paired with the recent increase in demand is causing this tight environment.
· Matt Marshall1 min read
Haynesville Production Is Growing. What Happens to Basis Prices?
Local Production may rise faster than new pipeline capacity, further constraining the area and pressuring basis. Henry Hub Natural gas prices have surged ...
· Jay Stevens4 min read
AECO - The Ugliest Competitor in the Natural Gas Beauty Pageant
Global gas prices have been wildly volatile this year as news headlines continue to paint a picture in which we run short of gas in the depths of winter.&n...
· AEGIS Market Analytics3 min read
Wake Up AECO! The Gas World is Leaving You Behind!
Canadian Producers Don’t Want to Complain about the Price of AECO, But… Natural gas sure had its sexy back for a minute after the one-two Hur...
· AEGIS Market Analytics3 min read
$10 Gas Is Possible This Winter
There is now* about a 20% chance that natural gas prices reach $10/MMBtu for the January contract, implied by the options market! Gas prices have been on ...
· Jay Stevens3 min read
West Texas Gas Production Likely to Increase, How Will Waha Basis React?
The Waha forward curve has been volatile over the past nine months and not volatile in the usual way everyone is used to. Parts of the Waha curve have rece...
· Jay Stevens2 min read
Dearth of Appalachian Egress Capacity Additions Limits Potential Production Growth
Over the past few years, Appalachian production has followed a seasonal pattern where supply increases during the winter season and winds down slightly dur...
· Nick Hillman3 min read
Power Generation From Natural Gas Shows Resilience
The proportion of natural gas burned in July for electricity has not followed conventional norms. As a percent of thermal load (coal+gas), natural ...
· Jay Stevens3 min read
Not So Fast, Canada
End of Summer Maintenance Puts AECO Basis on the Skids Just as gas prices continue the party, the helicopter parent named TC Energy has set an early curfe...
· AEGIS Market Analytics2 min read
You Must Be Prepared to Hedge Successfully: Lessons in Gas Price Volatility
June 29 was a normal “up” day for a while, then accelerated. Gas prices started the morning up around +5c, but rocketed to +20c. Unfortunately,...
· Lauren Trice2 min read
Alberta Gas Supply Suffering from Summer Hot-Offs
Alberta Field Receipts Drop to 10.3 Bcf/d as Heat Wave Hovers Over WCSB We are pretty well versed in writing about freeze-offs, but we struggled with this...
· AEGIS Market Analytics2 min read