Prices rose in New England over the September 17-24 report week, with reported restrictions from Algonquin Gas Transmission (AGT). The price at Algonquin Citygate (Boston) rose from $2.64 per million British thermal units (MMBtu) to $4.77/MMBtu to close the week. Prices in the rest of the country stayed closer to their initial marks, with most not moving more than 5% in either direction through the week. Transco Zone 6 (New York) fell significantly, however, even as New England rose.
At the New York Mercantile Exchange (Nymex) the price of the near-month (October 2014) contract fell through the week, from $4.013/MMBtu on Wednesday, September 17, to $3.816 on Tuesday, but rose a dime yesterday.
Working natural gas in storage rose to 2,988 Bcf as of Friday, September 19, according to the U.S. Energy Information Administration (EIA) Weekly Natural Gas Storage Report (WNGSR). A net increase in storage of 97 billion cubic feet (Bcf) for the week resulted in storage levels 11.4% below year-ago levels and 12.5% below the five-year average for this week.
The total rig count for the week ending September 19 remained the same, as reported September 12, at 1931, according to data from Baker Hughes Inc. This includes an increase of 4 land based rigs, offset by a reduction of 4 offshore rigs from the previous week. Rigs are now at 170 more units than last year’s level. The oil rig count rose by 9 to 1601, and is 232 units greater than last year. The natural gas rig count, however, declined by 9 units to 329 units, 57 rigs below year-ago levels.
The Mont Belvieu natural gas plant liquids composite price rose 1.9% to $9.94/MMBtu for the week covering September 15-19. The natural gasoline price remained flat while the prices of ethane, propane, butane, and Isobutane rose 3.5%, 3.2%, 1.1%, and 1.1%, respectively.
Supply down, but demand down more
Overall supply fell by 0.7% for the week ending September 24 because of reduced production and low imports. Dry gas production decreased by 1%, but remains 7.6% greater than year-ago levels. Imports from Canada increased week-over-week by 3.3%, with Northwest imports increasing and Northeast imports dropping. LNG supplied to the pipeline grid remained at minimal levels. Demand fell this week in all sectors, with overall consumption decreasing by 4.9%, although there were daily increases in demand for industrial and residential/commercial use associated with cooler temperatures.