NEISO, PJM, and NYISO remained flat overall since last week’s report. ERCOT experienced a slight bump up after the drop-off. The Department of Energy released a study on future coal and nuclear generation retirements, which examined NEISO, NYISO, PJM, and ERCOT during historical high demand periods, and said that additional coal and nuclear retirements could result in future grid instability. If coal and nuclear generators are kept online, there could be less demand for natural gas for electricity generation.
The Day-Ahead market remained quiet, as temperatures have come back to a more normal range.
Natural Gas Markets
The April 2018 contract expired Tuesday at $2.691/MMBtu. Demand for natural gas is expected to drop about 8 Bcf over the next week, however, production should remain very strong. The market seems to be focused on where storage levels will be in time for next winter.
Six-Month Natural Gas Futures
Futures as of 3/28/18 versus previous week:
May $2.698 +0.031
Jun. $2.751 +0.027
Jul. $2.808 +0.024
Aug. $2.823 +0.021
Sep. $ 2.809 +0.022
Oct. $2.822 +0.023
Natural Gas Inventory
EIA estimates, working gas in storage was 1,383 Bcf as of Friday, March 23, 2018. This represents a withdrawal of 63 Bcf from the previous week which is 33% lower than the year-ago level and 20% lower than the five-year. Stocks were 672 Bcf less than last year, and 346 Bcf below the five-year average of 1,729 Bcf. Storage inventories are expected to drop to 1.36 Tcf, 20% below normal before rebuilding begins.
NG Rig Count
The Baker Hughes exploration gas rig count increased by 4 rigs to a total of 194 rigs. The report total is 34 rigs more than in operation last year when there were 160 rigs.
Lower-than-normal temperatures dominate the Northeast and Midwest, while warmer-than-normal temperatures will be experienced in the West, Southwest, and much of the Southeast.
National Weather Service Updates (NOAA)
Hurricane Watch- No Activity: Click here to view the National Hurricane Center site.
Equatorial Pacific Outlook: Click here to view La Nina and El Nino status.
Energy News & Resources
National Grid has filed with the Massachusetts DPU new basic service rates for residential and commercial customers for the six-month period beginning May 1, 2018, and for industrial customers, for the three-month period beginning May 1, 2018
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