Edit ModuleShow Tags

U.S. Gas Storage Withdrawals Set Record

Record-breaking cold weather responsible for natural gas push


Published:

The U.S. Energy Information Administration (EIA) said widespread, record-breaking cold weather during the week of Jan. 5-11 pushed natural gas demand, storage withdrawals and prices to record highs.

It said draws from underground gas storage facilities were 287 Bcf (8.1 x 109 m3), “The most during the 20 years for which data exist and the latest in a season already characterized by withdrawals much larger than average.”

EIA said the cold weather impacted production. Wellhead freeze-offs occurred in parts of the Marcellus Shale in northeastern Pennsylvania and in the Fayetteville Shale in Arkansas. U.S. dry gas output dropped to 61.9 Bcf (1.7 x 109 m3) on Jan. 8, the lowest since September 2012, but rebounded to nearly 66 Bcf (1.8 x 109 m3) by Jan. 16.

It said Northeast gas prices spiked to US$30 to $40/MMBtu more than the benchmark Henry Hub price. On Transcontinental Pipeline’s Zone 5 line, which serves Mid-Atlantic customers, prices soared to $72.43/MMBtu.

EIA said Midwestern gas prices are normally closer to Henry Hub prices in periods of high demand since the region does not have major supply bottlenecks. However, prices at the Chicago City gate were almost US$10/MMBtu more than Henry Hub prices on Jan. 3, a day so cold that the Chicago Zoo brought its polar bear indoors.

Edit ModuleShow Tags

Archive »Archive »

Dominion Seeks To Expand Capacity Of PA Natural Gas Pipeline

Dominion Transmission plans to increase the capacity of a natural gas pipeline that runs through the Chambersburg, Pennsylvania area, a move that would cost US$210 million.

National Fuel To Build Compressor Station In Town Of Hinsdale

National Fuel Gas Supply recently received approval from the Federal Energy Regulation Commission (FERC) to construct a new compressor station in the Town of Hinsdale, New York.

Circor Energy Names Erik Wiik President

Erik Wiik has joined CIRCOR Energy as group president. Wiik was previously at Aker Solutions for 24 years, where he managed groups of businesses delivering advanced subsea technology to the global oil and gas industry.

HiPower Systems Signs New Distributor

HiPower Systems, a manufacturer of power generation and power distribution equipment in the U.S. and Canada, has signed RDO Equipment Co. to be a distributor in North Dakota, South Dakota, Minnesota and eastern Montana.

Altenesol Completes 15-Year LNG Contract

IAHL Corp. announced that its subsidiary, Altenesol LNG Colombia S.A.S., has finalized a 15 year take-or-pay agreement for its first LNG train.