January 23, 2024 – Natural Gas Intelligence
Volatility Poised to Permeate Natural Gas Futures, Spot Prices Through Winter
By Kevin Dobbs
…RBN Energy LLC analyst Housley Carr echoed that thinking and emphasized the consistent importance of Mexican demand along with LNG as key factors in price bulls’ playbook.
“With all the talk about U.S. LNG exports and plans for more LNG export capacity, it can be easy to forget that more than 6 Bcf/d of U.S. natural gas” — mostly from the Permian Basin and the Eagle Ford Shale — “is being piped to Mexico. That’s more than three times the volumes that were being piped south of the border 10 years ago, a tripling made possible by the buildout of new pipelines from the Agua Dulce and Waha hubs to the Rio Grande and, from there, new pipes within Mexico.
“And where is all that gas headed? Mostly to new gas-fired power plants and industrial facilities,” as well as “a handful of new LNG export terminals being planned on that side of the border” that “will only add to the demand,” Carr added...
Read the full article here: https://www.naturalgasintel.com/volatility-poised-to-permeate-natural-gas-futures-spot-prices-through-winter/
