December 14, 2020

December 14, 2020
Share
Print Friendly, PDF & Email
  • An oil tanker was struck by an “external” source off the coast of Jeddah, a port city along the Red Sea
    • The tanker, BW Rhine, was filled with nearly 60,000 tonnes of gasoline, according to shipping data from Refinitiv
    • This new attack comes after a missile struck a Saudi fuel distribution center in Jeddah on November 23. The Red Sea is a vital shipping lane for global energy supplies
  • Iran announces oil production plans for 2021 as the country expects a loosening of U.S. restrictions
    • Oil Minister Bijan Namdar Zanganeh told lawmakers the government aims to pump 4.5 MMBbl/d of oil and gas condensate
    • The oil minister also said Iran would increase oil exports to 2.3 MMBbl/d, provided that the U.S. eases sanctions
  • The Baker Hughes oil rig count gained 15 rigs to bring the total gas rig count to 338
    • The major basins, Permian, Eagle Ford, and Denver-Julesburg, added 4, 3, and 1 rig, respectively
  • Weather model changes from Friday showed an increase in colder risks at times (CWG)
    • The cooler shift was focused on the south and Southeast regions throughout the 6-12 day window
    • The changes amounted to an additional 20 Bcf of demand 
  • The Mountain Valley Pipeline could be close to resuming construction within a 25-mile buffer area around part of the natural gas pipeline route that would cross the Jefferson National Forest
    • The U.S. Forest Service finalized a supplemental environmental impact statement for a 3.5-mile forest crossing (Platts)
    • The environmental review release could allow for a new right-of-way authorization and a special use permit from the U.S. Department of the Interior in early 2021, according to ClearView Energy Partners
    • The 2 Bcf/d project connecting Appalachian gas to Mid-Atlantic demand is nearly finished, except for a few key pieces that have faced permitting challenges
  • Kinder Morgan’s new Permian Highway Pipeline (PHP) started operations earlier this month and flowed about 0.2 Bcf/d on December 8, according to PointLogic
    • PHP will transport up to 2.1 Bcf/d of natural gas from West Texas to the Texas Gulf Coast
    • Associated gas flows ticked higher in the Permian at the same time PHP started up service. Output grew by 0.9 Bcf/d during 4-11 December (PL)
    • At the same time, northbound net outflows from the Permian into the Mid-Continent fell by nearly 0.5 Bcf/d during December 1-10
    • AEGIS notes that the addition of PHP and Whistler (3Q 2021) will likely redirect more gas volume to the east and into the Texas Gulf Coast, where LNG demand waits
      • These two new 2 Bcf/d pipes are slated to steal gas from other legacy pipes and the Permian Basin flow direction of last resort – northbound

 

Access Our Deeper Market Insights

Product Factor Matrix

Proprietary view of priced-in factors driving the market vs. potential bullish and bearish surprises.

Learn More

Trading Recommendations

Clear trading recommendations based on real market opportunities that enable clients to take action.

Learn More

Market Data

A comprehensive suite of the latest curves, spot pricing, settles, and strips to drive confident hedging decisions.

Learn More

Benchmarking and Trade Analytics

Real-time access to analyze your hedging strategy against AEGIS benchmarks and current market activity.

Learn More