Morningstar Report Says Summer Heat, LNG Exports Will Tighten Gas
Here’s a third natural gas price prediction, from Morningstar DBRS, a top company that gives independent credit ratings and opinions for businesses, governments, banks, and financial projects worldwide. Earlier this week, Morningstar published a commentary/report called: “Summer Heat Likely to Add to High LNG Export Demand, Tightening the North American Gas Market” (full copy below). In the report, Morningstar analysts write that they expect the North American natural gas supply and demand balance to tighten from summer heat-driven peak electricity demand and expanding LNG exports, supporting higher bids for spot gas prices. Analysts believe the average price for natural gas will hit $3.50/MMBtu both in 2025 and in 2026. Read More “Morningstar Report Says Summer Heat, LNG Exports Will Tighten Gas”
U.S. LNG feedgas demand slipped last week to its lowest level since mid-December due to ongoing maintenance at the Sabine Pass and Cameron LNG export facilities along the Gulf Coast. Two trains were offline at Sabine Pass, and one train was offline at Cameron, resulting in feedgas demand of 13.28 Bcf/d for the week (down 7% from the previous week). In something of a miracle, Freeport LNG was online with all trains producing! 
The MVP (Mountain Valley Pipeline) Southgate project won a major decision in the U.S. Court of Appeals for the District of Columbia (DC Circuit), affirming a decision made by the Federal Energy Regulatory Commission (FERC) to allow an extra three years to build the project. Southgate is an extension of MVP from its current termination point in Pittsylvania County, Virginia, into Rockingham County, North Carolina. Coincidentally (or not), a day before the DC Circuit’s decision clearing the way for the project, MVP filed a request with the NC Department of Environmental Quality for a permit to build the project in that state. 
Yesterday, Pennsylvania Governor Josh Shapiro took credit for brokering a deal that will see Amazon build at least three huge data centers (which Democrats typically dislike) in eastern Pennsylvania, investing $20 billion to do so. It is a huge coup 
The Iroquois Gas Transmission’s Enhancement by Compression (ExC) project will increase horsepower at three compression stations — two in New York and one in Connecticut — by an extra 125 MMcf/d, to flow more Marcellus/Utica gas into New York City and New England. The two NY compressor expansions include one in Dover and one in Athens. The CT compressor expansion is located in Brookfield. Another CT compressor will get minor upgrades (gas cooling, no extra compression) in Milford. The NY DEC approved the permits for the NY compressors with the condition that Iroquois pays a $1.5 million 
In early April, MDN brought you the exciting news that pipeline giant Williams, via its subsidiary, Will-Power, is planning to build two Utica/Marcellus gas-fired power plants in the New Albany International Business Park in Licking County, Ohio (see 
In April, MDN told you that the West Virginia Supreme Court was scheduled to hear oral arguments in two important oil and gas royalty cases (see 
In April, Duke Energy, owner of electricity utility companies serving 8.6 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky, sealed a deal with GE Vernova to buy up to 11 gas turbines to power new gas-fired power plants (see 
According to the left-wing-funded (very partisan) Spotlight PA publication, a group of bills aimed at boosting electricity production and regulating clean energy has “rare, bipartisan support” in Pennsylvania’s divided legislature. We doubt that. More like a few RINOs are joining Democrats to support a few bills. Regardless of whether there is consensus between the two parties on these energy bills, they aren’t going anywhere in the PA Senate unless and until the state Supreme Court (loaded with Democrats) renders a decision on the Regional Greenhouse Gas Initiative (RGGI) carbon tax scheme. So says the PA Senate Majority Leader, Joe Pittman (Republican from Indiana). 
Last week, for the sixth week in a row, the Baker Hughes U.S. rig count dropped, down another four rigs to its lowest level since November 2021. It was the first time since September 2023 that the count has fallen for six (or more) weeks in a row. Free fallin’. However, the Marcellus/Utica count remained the same, at a combined 36 active rigs. The Pennsylvania Marcellus operated 18 rigs. The Ohio Utica operated 11 rigs. And West Virginia operated seven rigs. 
Republicans in the Buckeye State (Ohio) are treading on thin ice with a proposed change in the upcoming state budget. When GOP members began advocating for drilling under (not on) state-owned land and state parks in 2011, one of the arguments was that the revenue it would generate would improve state parks. A change in plans is underway with the latest two-year state budget, which would shift those revenues from park improvements to general operations instead. Is this a bait-and-switch? 
The Center for Energy & Environmental Analysis (CEEA) claims it is a “non-partisan think tank” that studies energy and environmental trends and their impact on the future. Attached to the University of Texas at Austin, the CEEA is actually very partisan (Democrat) and anti-fossil fuel. However, the CEEA has done us all a favor. The organization recently released a report aimed at denigrating a flurry of new natural gas pipeline projects planned or being built, and in the process, provides a list of 104 active pipeline projects that our side can celebrate. 
Bloomberg reports that Donald Trump is using our dominance of a niche petroleum gas, ethane, as a bargaining chip in his trade war with China. Last week MDN brought you the news that the Trump U.S. Bureau of Industry and Security (BIS) is blocking at least three (possibly more) cargoes of ethane by rejecting permits to export to Enterprise Products Partners (see 
Two days ago, the Pennsylvania Independent Fiscal Office (IFO) released its latest quarterly Natural Gas Production Report for January through March 2025 (full copy below). There were 93 new horizontal wells spud (drilled) in 1Q25, a decrease of 7 wells (-7%) compared to 1Q24. However, 1Q’s spud number increased by 9 (11%) from the 84 drilled in the prior quarter, 4Q24. Natural gas production volume was 1,941 billion cubic feet (Bcf) in 1Q25, up 56 Bcf (3%) from 1,885 Bcf produced in 1Q24, and up 72 Bcf (4%) from the 1,869 Bcf produced in 4Q24. The big news revolved around price. The average Pennsylvania spot hub price was $3.69, an increase of $2.00 (117.5%) from the prior year.