WEATHER UPDATE:
WARMER TEMPERATURES COVERING MOST OF THE US
- In an era of persistent demand and hot summers, pricing is expected to remain high. Especially as July came in as the third hottest on record. Experts predict the supply concerns and increased demand for LNG could eventually drive pricing up this winter past $13.00
- With another heat wave moving across the US, we could see pricing top $10.00 per Mmbtu. The hot weather coupled with higher demand will see pricing at levels not seen since 2008
NATURAL GAS MARKET:
WEATHER AND STORAGE WERE THE MAIN DRIVERS LAST WEEK
EVENT DELAY AT FREEPORT CAN BRING THE MARKET DOWN
Freeport has delayed the reopening of their facility until November. This did not affect markets much as the one-month delay only moved the market downward momentarily.
Gazprom is expected to shut down the Nordstream 1 pipeline for maintenance from August 31 to September 2. This news has made gas prices in Europe soar, and the fear is that Russia will delay the reopening of the pipeline further. Additionally, there are worries that Russia will delay the reopening or reduce the flow. EU gas prices are reflecting this pricing near $75.00 per Mmbtu.
EIA NATURAL GAS STORAGE REPORT
Withdrawal season begins in November, and we would have to inject 149 Bcf+ a week until the beginning of November to match last year’s storage going into winter. We have had only one injection all year over 100Bcf.
Despite the Freeport LNG facility reopening being delayed by a month, weather and low storage have continued to rally the gas market.
Electricity Grid:
PJM BGE AUGUST 16TH
PJM BGE AUGUST 23RD
PJM ADHUB AUGUST 16TH
PJM ADHUB AUGUST 23RD
