Weather: ABOVE-AVERAGE TEMPS IN PACIFIC NORTHWEST MEANS LESS HEAT DEMAND
Pricing dropped almost 33% in September. Strong production, mild weather, and Hurricane Ian all combined to bring the Natural Gas Market down by almost $3.00 during September. Take advantage of this now.
This drop is temporary. Winter weather is coming, which will mean higher demand and likely lower production. However, power will be restored in Florida, and the Freeport LNG facility will be back at full strength in the next two months.
TRACK OF HURRICANE IAN
Hurricane Ian hit Ft. Meyers, Florida, as a Category 4 hurricane and was hundreds of miles wide. This caused widespread damage and knocked out power to 2.5 million people before crossing into the Atlantic and then hitting then coming onshore AGAIN as a Category 1, storm in the Carolinas.
This has caused LOWER demand overall. If the storm had tracked west towards Louisiana, that would have affected production and drove the market to rise.
AN ALMOST 33% DROP IN THE MARKET IN SEPTEMBER
FROM A HIGH OF $9.40, WE ARE NOW AT $6.64
•Production numbers between 97-100 Bcf/d coupled with a right-on-schedule fall weather pattern combined with lower demand from Hurricane Ian, and we have a significant drop in the gas market for September.
•This is very temporary. Demand will come back in Florida as power is restored, the weather will get cooler, creating more heating demand, and production typically drops off in late winter. So enjoy it while you can and take advantage of it now.
•Peak afternoon hours of heat also grow shorter as we move into Autumn weather.
NATURAL GAS STORAGE REPORT
Another strong storage report gave us an injection of +103 Bcf. This should continue until demand rises with the heating season and the return of power to the millions who lost it in Florida during Ian.
TPI Company News: TPI Efficiency to become Official Utility Consultant of the Cleveland Browns and Official Utility Consultant of the Columbus Crew
TPI announced multi-year partnerships to become the Official Utility Consultant of the Cleveland Browns and the Official Utility Consultant of the Columbus Crew. Read the press release >>
PJM Grid Pricing Trends:
PJM BGE SEPTEMBER 20TH
PJM BGE SEPTEMBER 27TH
PJM ADHUB SEPTEMBER 20TH
PJM ADHUB SEPTEMBER 27TH
