Natural Gas Market
NEXT JANUARY’S PRICING REFLECTS MORE NORMAL JANUARY WEATHER.
WEATHER CONTINUES TO DRIVE THE NATURAL GAS MARKET DOWN.
- The most significant factor has been abnormally mild temperatures, with this January among the warmest on record. The delay in the reopening of the freeport LNG facility has also contributed.
- After two -200 Bcf withdrawals from Natural Gas Storage, January 6th saw a very rare mid-winter injection of +11 Bcf.
- Current pricing for January is an anomaly, and not one consumer should bank on every winter. Next winter’s pricing is already above $4.00 and reflects a more typical winter.
- A cold front is moving in from the West, bringing the market back up.
EIA Natural Gas Storage Report
Electricity News: FirstEnergy Auction
- FirstEnergy held its second auction for electricity on January 10th. The auction price came in at $97.70 per MWh ($0.0977/kWh), lower than the first auction price of $12.23 per MWh(0.1223/kWh). After adding in capacity line loss and margin, etc.
- FirstEnergy customers can expect a utility rate of around $0.13 per kWh starting in June, more than double the current rate. A third auction is set for March.
- Since late November, electricity pricing in the PJM Hub has fallen close to $12.00 per MWh (or$0.012 per kWh) and $10.00 per MWh (or a whole penny).
Weather
Mid Weather
- The milder weather continues to drive down natural gas pricing. The market has now fallen almost $3.20 in the last month. However, a cold front is moving in from the West and should lower temps and raise the market back up.
- Gas prices are reflective of this anomaly. Pricing begins to rise in July, and following winter is forecast to be above $4.00.
PJM BGE JANUARY 10TH
PJM ADHUB JANUARY 10TH
