Permian Gas Outflows Increase as Flows to Mexico Remain High

Waha natural gas cash prices increased last week, buoyed by an increase in outflows from the region, specifically to the North and East. Outflows to the North averaged 1.92 Bcf/d, up 0.15 Bcf/d week-on-week, driven by rebounding outflows on El Paso, on the route towards the Midcontinent.

LNG Canada: First LNG Production and a Nearby Tanker Awaiting First Exports

First LNG production occurred at the LNG Canada site in Kitimat, British Columbia (BC) this past weekend according to several media reports that confirmed this information with LNG Canada.

Rig Count Gains In Niobrara Aren't Enough To Offset Losses In Permian, Anadarko

US oil and gas rig count declined for the eighth consecutive week, falling to 554 for the week ending June 20 - a decline of one vs. a week ago according to Baker Hughes data.

Canadian Drilling – Rig Counts Stall Out at Midyear

For the week of June 20, Baker Hughes reported that the Western Canadian gas-directed rig count fell one to 46 (blue line and text in left hand chart below) and 11 less than one year ago.

Senate Budget Bill Offers No Reprieve to Hydrogen

The Senate’s version of the budget reconciliation bill, which was released earlier this week, is somewhat more generous to clean-energy initiatives than the House version but retains a provision to effectively end the 45V tax credit for clean hydrogen production.

Data Centers Consider Connecting to The Grid Versus Behind the Fence Generation

The most hyped-up topic in energy markets recently is the anticipated demand for power required by data centers to enable increased use of artificial intelligence.

Canadian LPG Stocks – Propane Inventories Still Tight; Butane Remains Plentiful

Western Canada’s propane inventories at the end of May (red line and text in left hand chart below) were posted at 3.5 MMbbl, with a stronger than average increase of 0.9 MMbbl versus April and stand 0.7 MMbbl (-16%) below the five-year average (blue line) according to data from the Canada Energy

PADD 1 Propane Draw Bucks Seasonal Norms

The EIA reported that total U.S. propane/propylene inventories had a build of 1.5 MMbbl for the week ended June 13. This build was less than industry expectations for an increase of 2.4 MMbbl and below the average build for the week of 2.1 MMbbl. Total U.S.

LNG Canada To Commence Production of LNG with First Export Cargo Looking Likely by Early July

Based on media reports and updates posted at the LNG Canada website, first production of LNG at the liquefaction site in Kitimat, BC (image below) is expected to begin late this week or on the weekend.

Western Canada’s June Natural Gas Cash Prices Struggle Against Pipeline Flow Restrictions

The cash price of Western Canada’s natural gas price marker of AECO has struggled in June 2025, despite generally stronger natural gas pricing elsewhere in North America and pending LNG exports off Canada’s west coast.

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