TPI Market Snapshot header
<em>Energy Electricity Natural Gas Weather News TPI Takeaway Market Snapshot<em>

EIA: WEEKLY NATURAL GAS STORAGE

<em>EIA Natural Gas Storage Report<em>

Why This Weekly Natural Gas Chart Is Import:

  • The report shows natural gas inventories for the reporting week and the previous week and the net change nationally. Additionally, it provides inventories for a year ago and the five-year average for historical comparison.
  • The Natural Gas Storage Indicator measures working gas, the volume of gas in a reservoir above a specified base level, and the amount of gas available for sale to the marketplace.

Understanding the Natural Gas Storage Report
The Natural Gas Storage Indicator measures working gas, the volume of gas in a reservoir above a specified base level, and the amount of gas available for sale to the marketplace.

The EIA report shows gas inventories for the reporting week and the previous week, the net change, on a national basis, and for East, West, and Producing regions. It also provides inventories for a year ago and the five-year average for historical comparison.

NATURAL GAS: THE PRODUCTION CUTBACK HAS BEGUN

<em>Natural Gas Rig Count<em>
  • Production cutbacks have begun with the Baker Hughes rig count showing fewer drilling rigs for Natural Gas and Oil, which also produce Natural Gas as a byproduct referred to as Associated Natural Gas Production.
  • Expect the cutbacks to continue until gas producers are happy with the price they can sell the gas for. Lower production, higher LNG exports, and increased demand will get them the result they desire.

ELECTRICITY PRICING AD HUB, 2023

<em>PJM Grid Ad Hub Pricing<em>
  • The higher electricity demand increased Natural Gas pricing, with the market moving close to $0.20 higher. This increase is despite a strong gas injection reported Thursday that beat last years and the five-year average for the week.
  • Capacity prices have been determined through 2024-2025. However, the 2025-2026 capacity auction, which was supposed to take place this June, has been delayed until NEXT June so that the PJM can further accommodate an upcoming market enhancement filing to fix potential reliability problems.
  • This will likely mean that higher capacity costs are expected.

ELECTRICITY PRICING IN PJM HUBS

<em>PJM Grid Pricing<em>

6-10 DAY AND 8-14 DAY WEATHER OUTLOOK

<em>US WEATHER MAP<em>
  • Warmer weather in the west and record temperatures in the South has increased electricity demand and pushed prices upward.
  • Texas saw triple-digit heat throughout much of the state. Dallas and San Antonio saw record temps, with San Antonio having a high of 114 degrees.