Edit ModuleShow Tags

EIA: Natgas Prices Losing Seasonality

Variance decreasing between summer and winter prices


Published:

The U.S. Energy Information Administration (EIA) reports that the variance is decreasing between summer and winter natural gas prices.

Gas prices normally are higher in the winter, reflecting demand for heating. EIA said over the past four years, the spread between the New York Mercantile Exchange price for delivery in February and for delivery in November has decreased from an average of US$0.65 per MMBtu in October 2010 to US$0.24 in October 2013.

The agency explained that increased gas production, particularly in the Northeast, has required less gas to be withdrawn from storage. Net withdrawals fell during the winter of 2012-13 compared to the winter of 2010-11 despite higher consumption and lower net imports.

Also, EIA said consumption in November through February, as a share of yearly gas usage, has dropped from 41% in 2010-11 to 39% in 2012-13, demonstrating that gas consumption is increasing in other months of the year for other uses, such as for electricity generation during the summer.

Edit ModuleShow Tags

Archive »Recent Articles

GE’s CNG In A Box Finds Home In Colorado CNG Station

Weld County, Colorado, welcomed its seventh public compressed natural gas (CNG) station, which is also the first in the area to feature GE’s CNG In A Box modular system, according to Sparq Natural Gas.

EIA: Most Locations See Nat Gas Price Drop

Natural gas spot prices dropped at most locations during the July 13 to July 20 report week, according to the U.S. Energy Information Administration (EIA).

Petrobras Looks To Scale Back

Petrobras, a Brazilian oil corporation, plans to sell or share control of its pipelines and open its liquefied natural gas (LNG) terminals to third parties as part of a plan to scale back its role in the state’s natural gas industry.

J-W Energy Exits Midstream, Upstream Markets

J-W Energy Co. has sold all of its oil and gas and midstream assets to affiliates of Aethon United LP, signaling an end to the company’s run in the upstream and midstream markets.

Siemens To Power The Missing Link

Siemens received an order from the Trans Adriatic Pipeline consortium for six, 15 MW turbo compressor trains. The equipment will be used in the Trans Adriatic Pipeline (TAP), which is part of the Southern Gas Corridor in Europe.