2023-11-09 21:31:30
In the News:
More than 20 Bcf/d of natural gas pipeline capacity is being developed for new U.S. LNG export terminals
More than 20.0 billion cubic feet per day (Bcf/d) of natural gas pipeline capacity under the jurisdiction of the Federal Energy Regulatory Commission or the Railroad Commission of Texas is under construction, partly completed, or approved to deliver natural gas to five U.S. liquefied natural gas (LNG) export terminals that are under construction, according to our Natural Gas Pipeline Project Tracker. Each LNG terminal—Golden Pass, Plaquemines, Corpus Christi Stage III, Rio Grande, and Port Arthur—has one or more pipelines being developed to facilitate delivery of natural gas to the terminal for liquefaction and export. About 12.2 Bcf/d of pipeline capacity is currently under construction.
Southeast Texas Projects
Golden Pass Pipeline: Golden Pass Pipeline, LLC, is expanding the existing 69-mile pipeline that originates northeast of Starks, Louisiana, by 2.5 Bcf/d to deliver natural gas to the Golden Pass LNG terminal in Jefferson County, Texas. The primary flow of the pipeline, originally built in 2010 to transport imported natural gas to interconnected interstate pipelines and northern U.S. markets, will be changed to a southbound direction and connections to nearby natural gas supply sources will be added.
Louisiana Connector Project and Texas Connector Project: Port Arthur Pipeline Company will construct two pipelines, each with a capacity of 2.0 Bcf/d, to deliver natural gas to the Port Arthur LNG export terminal in Jefferson County, Texas. The 72-mile Louisiana Connector Project will deliver natural gas through pipeline interconnections in Louisiana and Texas, and the 34-mile Texas Connector Project will extend from interconnections in Texas to the export terminal.
Louisiana Projects
Gator Express Pipeline: Venture Global Gator Express is constructing two pipelines, each with capacity of approximately 2.0 Bcf/d, to deliver natural gas from pipeline interconnections to the Plaquemines LNG export terminal located about 20 miles south of New Orleans, Louisiana. Phase 1 of the project includes a 15-mile pipeline and Phase 2 includes a 12-mile pipeline.
Evangeline Pass Expansion Project: Tennessee Gas Pipeline Company will construct this 13-mile pipeline with capacity of 1.1 Bcf/d to deliver natural gas to the Plaquemines LNG export terminal from a Southern Natural Gas Company interconnect in Mississippi to a new interconnect with the Gator Express Pipeline in Louisiana.
Venice Extension Project: This three-mile pipeline with capacity of 1.3 Bcf/d allows for the reversal of natural gas flows on a segment of Texas Eastern Transmission’s pipeline to accommodate natural gas deliveries to the Plaquemines LNG export terminal.
South Texas Projects
ADCC Pipeline: WhiteWater Midstream is constructing this 39-mile pipeline with capacity of 1.7 Bcf/d to deliver natural gas to the Corpus Christi Stage III project. This pipeline originates at the end of the Whistler Pipeline near the Agua Dulce hub in Nueces County, Texas, in the Eagle Ford production region.
Corpus Christi Stage III Pipeline: Cheniere Corpus Christi Pipeline is constructing this 21-mile pipeline with capacity of 1.5 Bcf/d. The pipeline will be co-located with an existing pipeline, originating at the Sinton compressor station in San Patricio County, Texas, and will deliver natural gas from pipeline interconnections to the Corpus Christi Stage III project.
Rio Bravo Pipeline: Rio Bravo Pipeline Company is constructing two 138-mile pipelines with a combined capacity of 4.5 Bcf/d to deliver natural gas from the Agua Dulce supply area to the Rio Grande LNG terminal in Brownsville, Texas.
Our Natural Gas Pipeline Project Tracker tracks approved and completed natural gas pipeline projects.
Market Highlights:
(For the week ending Wednesday, November 8, 2023)
Prices
Henry Hub spot price: The Henry Hub spot price fell 98 cents from $3.19 per million British thermal units (MMBtu) last Wednesday to $2.21/MMBtu yesterday.
Henry Hub futures price: The price of the December 2023 NYMEX contract decreased 38.8 cents, from $3.494/MMBtu last Wednesday to $3.106/MMBtu yesterday. The price of the 12-month strip averaging December 2023 through November 2024 futures contracts declined 19.9 cents to $3.306/MMBtu.
Select regional spot prices: Natural gas spot prices fell at major pricing locations this report week (Wednesday, November 1 to Wednesday, November 8). Price changes ranged from a decline of $0.35/MMBtu at Eastern Gas South to a decline of $2.26/MMBtu at Malin.
Prices in the Midwest decreased this week as temperatures rose later in the report week. At the Chicago Citygate, the price decreased 53 cents from $2.73/MMBtu last Wednesday to $2.20/MMBtu yesterday. In the Chicago Areaaverage temperatures started this report week on November 2 at 46°F, 1°F below normal, but rose to 62°F on November 6, 17°F above normal. Consumption in the residential and commercial sectors decreased 28% (1.9 billion cubic feet per day [Bcf/d]) in the Midwest this week, according to data from S&P Global Commodity Insights.
Prices in the Pacific Northwest and in Northern California decreased this week as natural gas demand declined and flows of natural gas into the West increased. The price at Sumas on the Canada-Washington border fell $1.60 from $4.45/MMBtu last Wednesday to $2.85/MMBtu yesterday. The price at PG&E Citygate in Northern California fell $2.23, down from $6.09/MMBtu last Wednesday to $3.86/MMBtu yesterday. Average temperatures in the Seattle City Area increased from a weekly average of 45°F (5°F below normal) last report week to 53°F (5°F above normal) this week. As a result, consumption of natural gas in the residential and commercial sectors in the Pacific Northwest declined 36% (0.4 Bcf/d) this week, according to data from S&P Global Commodity Insights. Imports of natural gas from Canada to the Pacific Northwest increased by 26% (0.8 Bcf/d) this week and flows of natural gas from the Pacific Northwest into Northern California increased by 28% (0.5 Bcf/d).
Prices in Southern California decreased this week. The price at SoCal Citygate in Southern California decreased 84 cents from $7.33/MMBtu last Wednesday to $6.49/MMBtu yesterday. The price at SoCal Border – Ehrenberg on the California-Arizona border decreased $1.22 from $3.08/MMBtu last Wednesday to $1.86/MMBtu yesterday, reflecting better supply on the El Paso Natural Gas pipeline. Maintenance on the Gila compressor station west of Phoenix reduced westbound capacity on the system by 0.3 Bcf/d from November 3 until yesterday. Total consumption of natural gas in California declined 10% (0.5 Bcf/d) this week, according to data from S&P Global Commodity Insights, due to mild average temperatures. The average temperature in the Riverside Areainland of Los Angeles, was 66°F this week resulting in 5 heating degree days (HDDs), 16 fewer HDDs than normal for this time of year. Although prices in Southern California decreased this week, the price at the SoCal Citygate remains elevated relative to other major U.S. pricing hubs. As of November 8, two power plants serving Southern California were undergoing planned maintenance outages: the Diablo Canyon nuclear power plant north of Los Angeles was operating at 50% capacity, and the Palo Verde nuclear power plant west of Phoenix was operating at 67% capacity. In addition, maintenance on the Southern California Gas Company pipeline system is reducing capacity by more than 0.5 Bcf/d in the Southern Zone and by more than 0.8 Bcf/d in the Needles/Topock Area Zone.
Daily spot prices by region are available on the EIA website.
International futures prices: International natural gas futures prices decreased this report week. According to Bloomberg Finance, L.P., weekly average front-month futures prices for liquefied natural gas (LNG) cargoes in East Asia decreased 36 cents to a weekly average of $17.46/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands decreased 73 cents to a weekly average of $14.63/MMBtu. In the same week last year (week ending November 9, 2022), the prices were $27.91/MMBtu in East Asia and $33.95/MMBtu at TTF.
Natural gas plant liquids (NGPL) prices: The natural gas plant liquids (NGPL) composite price at Mont Belvieu, Texas, was relatively flat, falling 2 cents/MMBtu to average $6.95/MMBtu for the week ending November 8. Weekly average ethane prices fell 1%, while weekly average natural gas prices at the Houston Ship Channel fell 28% week over week. The ethane premium to natural gas rose 70%. Ethylene spot prices fell 7%, and the ethylene premium to ethane fell 12%. Both the average weekly propane price and the Brent crude oil price fell 3%, and the propane discount relative to crude oil also fell 3%. The price of natural gasoline also followed the fall in crude oil price, declining 2%. Rising butanes prices offset declines in other NGPLs: the normal butane price rose 3%, and the isobutane price rose 10%.
Supply: According to data from S&P Global Commodity Insights, the average total supply of natural gas rose by 1.5% (1.7 Bcf/d) compared with the previous report week. Dry natural gas production grew by 1.7% (1.8 Bcf/d) week over week to a record-high 104.6 Bcf/d, and average net imports from Canada decreased by 2.6% (0.1 Bcf/d) from last week.
Demand: Total U.S. consumption of natural gas fell by 5.6% (4.6 Bcf/d) compared with the previous report week, according to data from S&P Global Commodity Insights, driven by above-normal temperatures across most of the United States. Natural gas consumed for power generation declined by 7.4% (2.5 Bcf/d) week over week. Industrial sector consumption decreased by 1.1% (0.3 Bcf/d) week over week, and residential and commercial sector consumption declined by 7.6% (1.8 Bcf/d). Natural gas exports to Mexico increased 3.5% (0.2 Bcf/d). Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 13.9 Bcf/d, or 0.1 Bcf/d lower than last week.
Pipeline receipts: Average natural gas deliveries to U.S. LNG export terminals declined by 0.7% (0.1 Bcf/d) week over week, averaging 13.9 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Louisiana decreased by 1.7% (0.1 Bcf/d) to 8.6 Bcf/d. Natural gas deliveries to terminals in South Texas declined by 0.9% (less than 0.1 Bcf/d) to 4.1 Bcf/d. Natural gas deliveries to terminals outside the Gulf Coast increased 8.4% (0.1 Bcf/d) to 1.2 Bcf/d.
Vessels departing U.S. ports: Twenty-three LNG vessels (eight from Sabine Pass; four each from Calcasieu Pass and Freeport; three each from Cameron and Corpus Christi; and one from Cove Point) with a combined LNG-carrying capacity of 86 Bcf departed the United States between November 2 and November 8, according to shipping data provided by Bloomberg Finance, L.P.
According to Baker Hughes, for the week ending Tuesday, October 31, the natural gas rig count increased by 1 to 118 rigs. The Haynesville dropped one rig, and the Marcellus dropped two rigs. The Utica added two rigs, and two rigs were added in unidentified producing regions. The number of oil-directed rigs fell by 8 to 496 rigs. The Marcellus added one rig, the Cana Woodford and the Williston each dropped one rig, the Permian dropped three rigs, and four rigs were dropped in unidentified producing regions. The total rig count decreased by 7, and it now stands at 618 rigs.
According to The Desk survey of natural gas analysts, estimates of the weekly net change to working natural gas stocks ranged from net withdrawals of 18 Bcf to net injections of 5 Bcf, with a median estimate of net withdrawals of 6 Bcf.
EIA will not publish weekly natural gas inventories data this week. Please see our October 19 press release for more detail.
More storage data and analysis can be found on the Natural Gas Storage Dashboard and the Weekly Natural Gas Storage Report.
See also:
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