The price of natural gas isn’t going anywhere fast during winter 2015-2016. That’s the takeaway MDN gets from an analysis just released by the Natural Gas Supply Association (NGSA). The NGSA’s 15th annual Winter Outlook assessment (full copy below) says we have record production on the way, record amounts of gas in storage, and according to the National Weather Service, a winter that will average around 7 degrees warmer than last year. NGSA also says demand for natgas from electric generating plants and other users will tick up a bit. So on balance, NGSA says there will be “neutral pressure” on this winter’s natural gas prices compared to the winter of 2014-2015. In other words, the price isn’t going anywhere–likely to stay in the same neighborhood of last winter’s average Henry Hub price of $3.21 per thousand cubic feet (Mcf). MDN points out the price of gas varies widely depending on what part of the country you’re in. Although gas sold at the Henry Hub delivery point for an average of $3.21/Mcf last winter, gas selling at the Tennessee Gas Pipeline Zone 4 Marcellus delivery point was less than half that–around $1.50/Mcf last winter. NGSA is saying: What you saw last winter for prices is what you’re likely to see this winter…
The price of natural gas isn’t going anywhere fast during winter 2015-2016. That’s the takeaway MDN gets from an analysis just released by the Natural Gas Supply Association (NGSA). The NGSA’s 15th annual Winter Outlook assessment (full copy below) says we have record production on the way, record amounts of gas in storage, and according to the National Weather Service, a winter that will average around 7 degrees warmer than last year. NGSA also says demand for natgas from electric generating plants and other users will tick up a bit. So on balance, NGSA says there will be “neutral pressure” on this winter’s natural gas prices compared to the winter of 2014-2015. In other words, the price isn’t going anywhere–likely to stay in the same neighborhood of last winter’s average Henry Hub price of $3.21 per thousand cubic feet (Mcf). MDN points out the price of gas varies widely depending on what part of the country you’re in. Although gas sold at the Henry Hub delivery point for an average of $3.21/Mcf last winter, gas selling at the Tennessee Gas Pipeline Zone 4 Marcellus delivery point was less than half that–around $1.50/Mcf last winter. NGSA is saying: What you saw last winter for prices is what you’re likely to see this winter…