Thursday, June 9, 2016

Appalachian Natural Gas Supply and Demand Economics (Latest June 2016)

Appalachian Natural Gas Supply and Demand Economics (Latest June 2016)

U.S. Nat Gas prices nearing $2.50/MCF, rising with oil prices

Winter gas futures holding > $3.00/MCF, near-month futures spread increasing

Appalachian prices still constrained but still creeping up

LNG liquifaction and  exports slowly ramping up.

Summer cooling demand predicted to be higher than in the past due to more gas on the grid.

Storage fill somewhat less robust than expected.

Production expected to remain flat or drop slightly.

Winter heating demand predicted to be higher than in the past due to more gas on the grid and due to colder non-El Nino winter.










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