Articles tagged Permian Highway Pipeline

Natural gas futures flew higher Thursday, gaining ground for the fifth time in six sessions as production continued to slide and storage excesses gradually narrowed.

North American natural gas forwards rallied across the 2024 strip during the May 2-8 trading period as sagging production readings and an incrementally supportive LNG export outlook stirred bullish optimism.

Natural gas futures were pushing higher at the front of the curve through midday trading Thursday after the latest government-reported inventory build landed on the leaner side of market expectations.

Having posted sizable gains since late last week, natural gas futures were up a more modest amount through midday Tuesday; traders were left to mull a fundamental outlook headlined by falling supply estimates.

• Natural gas futures pop around 1:25 p.m. ET, shortly after Golden Pass Pipeline files FERC partial in-service request
• April Nymex contract briefly pushed above $2.000/MMBtu before receding; front month at $1.945 as of 2:02 p.m. ET, up 2.9 cents
• Regulatory filing seeks interim service for part of Golden Pass Pipeline by April 1, adding up to 600,000 Dth/d
• Nymex futures sold off in December after ExxonMobil pushed back Golden Pass LNG Train 1 first exports to 1H2025
• Production remains down in latest estimates; Wood Mackenzie observing roughly 1.4 Bcf/d day/day drop, overall output down to around 100.4 Bcf/d
• Weather to be “quite bearish” the next 13 days, continuing to pad storage surplus, according to NatGasWeather
• Per NatGasWeather: “The battle continues between not-cold-enough weather patterns versus hopes lighter U.S. production will provide opportunity for massive surpluses to be reduced in time”
• Appalachian basis differentials seeing a bump following EQT Corp.’s announced 1.0 Bcf/d curtailment
• Texas Eastern M-2, 30 Receipt basis up around a nickel for April, May, June contracts since late last week, according to NGI’s Forward Look
• West Texas spot prices crushed under weak demand, pipeline constraints, NGI’s MidDay Price Alert shows
• Waha averaging minus-55.0 cents, down 72.5 cents day/day, according to MidDay Price Alert
• Permian Highway Pipeline notified customers of planned repair at Praha Compressor Station, to limit capacity on Wednesday; expected to resume full service by Thursday
• Waha spot prices last averaged in the negatives on Oct. 24, 2023, at minus-24 cents, NGI’s daily historical data show

Surging production and new takeaway capacity paved a path for record-high natural gas supplies flowing from the prolific Permian Basin.

The January natural gas futures contract stumbled out of the gate on its first day as the front-month Wednesday, tripped up by stubbornly warm forecasts for early December and bears sticking to their oversupply views a day before the government’s weekly storage report.

Natural gas futures rallied on Wednesday, extending a week-to-date win streak amid advancing cold in the North, strengthening spot prices and solid LNG demand.

Natural gas futures snapped a two-day rally with a sharp drop on Wednesday as markets shifted focus to mild weather and persistently strong production. The October Nymex gas futures contract settled at $2.733/MMBtu, down 11.5 cents day/day. November fell 10.5 cents to $2.921.

Record natural gas production and strong oil output in the New Mexico portion of the Permian Basin played a primary role in boosting expectations for revenue in the years to come, according to the state’s Legislative Finance Committee (LFC).