Exports of natural gas from the Permian Basin directly to Mexico averaged 2.0 Bcf/d during the week ending August 18, which is in line with previous peak summer levels. After a very strong start to summer, outflows to Mexico fell in July and early August, but the past two weeks have been back at that peak level, as can be seen in the green line in the chart below. Depending on Mexican power demand, peak outflows could last into September before tapering off as the weather cools in the fall.
Featured Articles
- Analyst Insight
Permian Gas Outflows Increase as Flows to Mexico Remain High
Flows from the Permian Basin to Mexico have been strong this June and may set a new monthly record.
- Blog
Sky's the Limit, Part 2 - How U.S. Demand is Factoring into the 2018 Gas Storage Injection Season
Lower 48 dry gas production has climbed 3 Bcf/d since April to nearly 82 Bcf/d this month to date, which is an average ~9 Bcf/d — or 12% — higher year-on-year. Despite that meteoric rise in supply, the U.S. gas storage inventory, which started the injection season well below year-ago and five-year average levels, continues to carry a substantial deficit. That’s because record demand volumes thus far have managed to keep storage injections in check. Today, we provide an update of the demand factors affecting the 2018 gas injection season.
- Blog
Hazy Shade of Winter - Natural Gas Market Balance, Prices Hinge on Cold Winter
Just a month ago, the CME/NYMEX Henry Hub prompt natural gas futures contract was trading at a six-month high of $3.21/MMBtu (on November 10), and the U.S. gas storage inventory was at a three-year low, setting the stage for a bullish winter — assuming normal wintry weather. Since then, the prompt-month contract has tumbled about 50 cents to a settle of $2.715/MMBtu as of this Wednesday. In that time, temperatures fell across the country and seasonal demand for heating homes and businesses kicked in, and LNG exports ticked up slightly. But supply also grew by a lot, with natural gas production surging by 1.0 Bcf/d since then to a new record high of 76.9 Bcf/d just this past Monday. How did the fundamentals shake out in November, and what do current fundamentals mean for the balance of winter? Today, we reconcile these latest shifts in gas market fundamentals.
