Natural Gas demand this winter
Posted: Fri Oct 06, 2017 8:13 pm
October 10, 2017 Washington, D.C. – Demand for natural gas is projected to reach an all-time high this winter, the Natural Gas Supply Association (NGSA) said today in its 17th annual Winter Outlook forecast of the wholesale winter natural gas market.
The NGSA 2017-2018 Winter Outlook for Natural Gas predicted that record demand will exceed even that of the Polar Vortex winter of 2013-2014, but said surging production, Canadian imports and robust storage inventories of natural gas will ably satisfy demand, resulting in flat pressure on prices compared to last winter. Last winter, natural gas prices at the Henry Hub averaged NGSA’s Winter Outlook relies on published data and independent analyses. NGSA evaluates the combined impact of weather, economic growth, customer demand (including exports), storage inventories, supply activity and recent hurricanes on the direction of natural gas prices for the winter of 2017-2018, compared to last winter.
NGSA based its forecast on the outlook for 13 percent colder weather this winter heating season compared to last winter, which will increase demand from the residential and commercial market, in addition to smaller but still consequential increases in demand from the electric and industrial sectors and further boosted by steady growth in exports of natural gas.
“The picture that emerged for the upcoming winter is of a natural gas market experiencing substantial growth in both demand and supply. Record demand in the residential and commercial sector is primarily driven by colder weather, with a longer-term shift to natural gas in the electric and industrial sectors driven by competitive prices and environmental benefits,” said Scott Moore, Chairman of NGSA and Senior Vice President, Anadarko Petroleum Corp.
Moore said, “We’d like consumers to keep in mind that wholesale natural gas prices averaged only about $3 per MMBtu last winter, thanks to abundant natural gas from shale, even more natural gas on tap from storage and a flexible and responsive pipeline infrastructure system.”$3.01 per MMBtu.
Full report here: http://www.ngsa.org/download/news/news- ... -FINAL.pdf
The NGSA 2017-2018 Winter Outlook for Natural Gas predicted that record demand will exceed even that of the Polar Vortex winter of 2013-2014, but said surging production, Canadian imports and robust storage inventories of natural gas will ably satisfy demand, resulting in flat pressure on prices compared to last winter. Last winter, natural gas prices at the Henry Hub averaged NGSA’s Winter Outlook relies on published data and independent analyses. NGSA evaluates the combined impact of weather, economic growth, customer demand (including exports), storage inventories, supply activity and recent hurricanes on the direction of natural gas prices for the winter of 2017-2018, compared to last winter.
NGSA based its forecast on the outlook for 13 percent colder weather this winter heating season compared to last winter, which will increase demand from the residential and commercial market, in addition to smaller but still consequential increases in demand from the electric and industrial sectors and further boosted by steady growth in exports of natural gas.
“The picture that emerged for the upcoming winter is of a natural gas market experiencing substantial growth in both demand and supply. Record demand in the residential and commercial sector is primarily driven by colder weather, with a longer-term shift to natural gas in the electric and industrial sectors driven by competitive prices and environmental benefits,” said Scott Moore, Chairman of NGSA and Senior Vice President, Anadarko Petroleum Corp.
Moore said, “We’d like consumers to keep in mind that wholesale natural gas prices averaged only about $3 per MMBtu last winter, thanks to abundant natural gas from shale, even more natural gas on tap from storage and a flexible and responsive pipeline infrastructure system.”$3.01 per MMBtu.
Full report here: http://www.ngsa.org/download/news/news- ... -FINAL.pdf