Email from Phil Hodge... Hello everyone. I hope you are all well.
My next President’s letter and email will not be out until March 7th with our 2022 annual financial statements, but I wanted to update you on a few new developments relevant to Pine Cliff and the natural gas markets.
First, I presented the Pine Cliff story at Michael Campbell’s World Financial Outlook Conference in Vancouver on February 3, 2023. If you were not able to attend that, the presentation has been added to our website and can be found at https://www.pinecliffenergy.com/news#video.
Second, an LNG vessel has arrived at the Freeport LNG terminal in Texas for the first time since June 2022 when a fire occurred there. Vessel Arrives at Freeport LNG Facility. This is important as the full resumption of exports of LNG from this facility would mean an additional two BCF per day of demand returning to the US Market.
Third, RBN Energy published this weekend a five-year natural gas market outlook for the US which I have copied below. Despite the commodity volatility (Natural Gas: Fasten Your Seat Belts) over the past two months, this outlook is quite positive for the natural gas market in the years to come. I personally share this optimistic outlook, something I commented on in my presentation in Vancouver.
Finally, most of you know how close we watch natural gas storage levels as a leading indicator of where natural gas prices may be headed. As you can see from the TD Energy charts below, although US natural gas storage is now 5% above five year averages, Canada natural gas storage is still 17% BELOW the five year average and is just touching the five year low level for this time of year.
Keep well and I will send you another update on March 7th.
Regards,
Phil