US Natgas Prices Fall Further
US natural gas prices fell for a second session to around $3.11/MMBtu on Monday, as the market awaited further updates on the Mountaineer XPress pipeline in West Virginia. TC Energy’s Columbia Gas Transmission unit said on Friday that crews were working to resolve the issue as quickly as possible after declaring force majeure on Thursday ...
US natural gas prices continued to decline on Monday, slipping to approximately $3.11 per million British thermal units (MMBtu) as market participants awaited further details on the Mountaineer XPress pipeline in West Virginia. TC Energy's Columbia Gas Transmission unit reported on Friday that crews were working diligently to resolve the mechanical issue, which had caused a force majeure declaration on Thursday. The disruption impacted gas flows by an estimated 1.4 to 1.8 billion cubic feet per day (bcfd).
Despite the pipeline setbacks, rising liquefied natural gas (LNG) feedgas demand continued to provide support to prices. In September, flows to the nine major export plants averaged 17.9 bcfd, up from 17.2 bcfd in August. This increase occurred even though the Cove Point facility, located at port 0.8 bcfd, was offline for scheduled maintenance.
The hot summer weather has started to deplete the storage surplus that had accumulated due to robust production levels and mild spring conditions. Although September production remains close to record highs, averaging 112.5 bcfd, daily output has been gradually declining. The primary reason for this decline is attributed to decreased output in West Virginia and Texas.
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