Nuvista Energy Ltd T.NVA

Nat gas weekly

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Market Highlights:

(For the week ending Wednesday, April 24, 2024)

 

Prices

Daily spot prices by region are available on the EIA website.

• Henry Hub spot price: The Henry Hub spot price rose 9 cents from $1.50 per million British thermal units (MMBtu) last Wednesday to $1.59/MMBtu yesterday. 
• Henry Hub futures price: The price of the May 2024 NYMEX contract decreased 5.9 cents, from $1.712/MMBtu last Wednesday to $1.653/MMBtu yesterday. The price of the 12-month strip averaging May 2024 through April 2025 futures contracts climbed 3.3 cents to $2.802/MMBtu. 
• Select regional spot prices: Natural gas spot prices rose at most major pricing hubs this report week (Wednesday, April 17 to Wednesday, April 24). Price changes were relatively small at many locations and ranged from a decrease of 37 cents at SoCal Citygate to an increase of $1.25 at the Waha Hub.
  • In the Northeast, at the Algonquin Citygate, which serves Boston-area consumers, the price went up 10 cents from $1.46/MMBtu last Wednesday to $1.56/MMBtu yesterday. At the Transcontinental Pipeline Zone 6 trading point for New York City, the price increased 14 cents from $1.42/MMBtu last Wednesday to $1.56/MMBtu yesterday. Temperatures in the New York-Central Park Area averaged 54°F this report week, resulting in 76 heating degree days(HDD), 36 more HDDs than last week and 8 more HDDs than normal. Natural gas consumption in the Northeast increased 15% (2.4 billion cubic feet per day [Bcf/d]), according to data from S&P Global Commodity Insights, which was led by a 49% increase (2.4 Bcf/d) in the residential and commercial sector.
  • Price changes on the West Coast were mixed this report week. The price at PG&E Citygate in Northern California rose 9 cents, up from $2.16/MMBtu last Wednesday to $2.25/MMBtu yesterday, while the price at SoCal Citygate in Southern California decreased 37 cents from $2.11/MMBtu last Wednesday to $1.74/MMBtu yesterday. Temperatures in the Riverside Area, east of Los Angeles, averaged 64°F this report week, nearly normal, resulting in 12 HDDs and 4 cooling degree days (CDD), which was 22 fewer HDDs than last week and 4 fewer CDDs than last week. Natural gas consumption in California decreased 24% (1.4 Bcf/d), according to data from S&P Global Commodity Insights, which was led by a 19% (0.4 Bcf/d) decrease in residential and commercial sector consumption. At Northwest Sumas on the Canada-Washington border, the main pricing point for natural gas in the Pacific Northwest, the price rose 4 cents from $1.20/MMBtu last Wednesday to $1.24/MMBtu yesterday. 
  • Natural gas price changes across Texas were mixed this report week. At the Houston Ship Channel, the price fell 9 cents from $1.27/MMBtu last Wednesday to $1.18/MMBtu yesterday. The price at the Waha Hub, which is located near Permian Basin production activities, rose $1.25 this report week, from -$1.18/MMBtu last Wednesday to $0.07/MMBtu yesterday, the second day the price was above zero since April 1. Maintenance on El Paso Natural Gas Company’s pipeline system, which delivers natural gas from West Texas to the Desert Southwest and southern California, concluded this week, increasing available takeaway capacity from the Permian Basin by approximately 0.9 Bcf/d. At the same time, maintenancecontinued this week on the Gulf Coast Express Pipeline, which delivers natural gas southbound from the Permian Basin to the Agua Dulce, Texas area. 
• International futures prices: International natural gas futures price changes were mixed this report week. According to Bloomberg Finance, L.P., weekly average front-month futures prices for liquefied natural gas (LNG) cargoes in East Asia increased 32 cents to a weekly average of $10.51/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands decreased 35 cents to a weekly average of $9.38/MMBtu. In the same week last year (week ending April 26, 2023), the prices were $11.90/MMBtu in East Asia and $12.84/MMBtu at TTF.
• Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 10 cents/MMBtu, averaging $7.32/MMBtu for the week ending April 24. Ethane prices rose 2% week over week, while weekly average natural gas prices at the Houston Ship Channel increased 33%, narrowing the ethane premium to natural gas by 23%. The ethylene spot price fell 1% week over week, and the ethylene premium to ethane decreased 2%. Propane prices decreased 3%, while Brent crude oil prices fell 2%, and the propane discount to crude oil decreased by 2% this week. Normal butane prices fell 4%, isobutane prices fell 2%, and natural gasoline prices were unchanged. 

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Supply and Demand

• Supply: According to data from S&P Global Commodity Insights, the average total supply of natural gas rose by 1.0% (1.1 Bcf/d) compared with the previous report week. Dry natural gas production increased by 0.1% (0.1 Bcf/d) to average 99.6 Bcf/d, and average net imports from Canada increased by 21.0% (0.9 Bcf/d) from last week. 
• Demand: Total U.S. consumption of natural gas rose by 7.3% (5.0 Bcf/d) compared with the previous report week, according to data from S&P Global Commodity Insights. In the residential and commercial sector, consumption increased by 38.2% (5.6 Bcf/d) week over week driven by cooler temperatures. Natural gas consumed for power generation declined by 2.1% (0.7 Bcf/d) and industrial sector consumption increased by 0.4% (0.1 Bcf/d). Natural gas exports to Mexico increased 3.7% (0.2 Bcf/d). Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 11.5 Bcf/d, or 0.5 Bcf/d higher than last week.

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Liquefied Natural Gas (LNG)

• Pipeline receipts: Average natural gas deliveries to U.S. LNG export terminals increased by 4.9% (0.5 Bcf/d) week over week, averaging 11.5 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Louisiana increased by 4.1% (0.3 Bcf/d) to 8.2 Bcf/d, while natural gas deliveries to terminals in South Texas increased 14.3% (0.2 Bcf/d) to 2.0 Bcf/d. Natural gas deliveries to terminals outside the Gulf Coast were essentially unchanged at 1.3 Bcf/d.
• Vessels departing U.S. ports: Twenty-two LNG vessels (nine from Sabine Pass; four from Corpus Christi; three from Cameron; two each from Calcasieu Pass and Elba Island; and one each from Cove Point and from Freeport) with a combined LNG-carrying capacity of 79 Bcf departed the United States between April 18 and April 24, according to shipping data provided by Bloomberg Finance, L.P.

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Rig Count

• According to Baker Hughes, for the week ending Tuesday, April 16, the natural gas rig count decreased by 3 rigs from a week ago to 106 rigs. The Utica dropped two rigs, and the Permian dropped one rig. The number of oil-directed rigs increased by 5 rigs from a week ago to 511 rigs. The Permian added three rigs, the Cana Woodford and Granite Wash each added two rigs, and the Utica added one rig. Three rigs were dropped among unidentified producing regions. The total rig count, which includes 2 miscellaneous rigs, now stands at 619 rigs, 134 fewer rigs than last year at this time. 

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Storage

• Net injections into storage totaled 92 Bcf for the week ending April 19, compared with the five-year (2019–2023) average net injections of 59 Bcf and last year's net injections of 77 Bcf during the same week. Working natural gas stocks totaled 2,425 Bcf, which is 655 Bcf (37%) more than the five-year average and 439 Bcf (22%) more than last year at this time.
• According to The Desk survey of natural gas analysts, estimates of the weekly net change to working natural gas stocks ranged from net injections of 74 Bcf to 95 Bcf, with a median estimate of 87 Bcf.