Northeast Gas Poised to Surge on Pipeline Limits: Energy Markets
Natural gas prices in the U.S. Northeast are poised to reach five-year seasonal highs this summer because increasing demand from power plants may be too much for pipelines to handle.
Regional costs may average $5 to $5.50 per million British thermal units, with the potential to jump to $7 to $8, Chris Kostas, senior power and gas analyst for Energy Security Analysis Inc., a market research and advisory company in Andover, Massachusetts, said in a May 1 interview.
Gas at the Algonquin City Gates surged to a premium to benchmark gas at the Henry Hub in Erath, Louisiana, of $30.82 per million British thermal units on Jan. 24, the widest spread since January 2004, according to Intercontinental Exchange data compiled by Bloomberg. That sent spot prices in the region to a nine-year high of $34.38 per million Btu. The premium averaged a record $6.11 this year through April.
“This basis blowout had been primarily considered a winter phenomenon, but in the summertime, this market is getting pretty tight,” Teri Viswanath, director of commodities strategy at BNP Paribas SA in New York, said in an April 30 interview. “It’s really occurring during periods of peak demand, where there is simply not enough delivery pipeline to meet regional demand.”
Progressives. They really just cannot help themselves. Like Stag the Corn Monster Investment Bumble Beast. How dare his repeated lies and purposeful dissembling earn his moniker.