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In This Issue

FERC Denies Bid to Block Algonquin Pipeline Expansion

Prices Down 26% in ISO-NE Capacity Auction

Natural Gas and Oil Market Update

EIA - Weekly Natural Gas Storage Report

NYMEX Natural Gas Week-to-Week Price Change

Natural Gas Futures - Five Year Price


NOAA 6 to 10 Day Outlook
Color indicates the probability of forecasted temperatures being above or below a historical average for the period.


Market Overviews

FERC Denies Bid to Block Algonquin Pipeline Expansion

RTO Insider | February 11, 2015

FERC turned aside attempts to block Spectra Energy’s Algonquin pipeline expansion, allowing construction to continue on the 37-mile span, which is expected to be completed in November.

The commission rejected requests for a rehearing and a stay by eight parties, primarily impacted landowners, municipalities and environmental interests.

The ruling reiterated the commission’s order last March granting Algonquin Gas Transmission a certificate of public convenience and necessity for the Algonquin Incremental Market (AIM) project in New York, Connecticut, Rhode Island and Massachusetts.

The challengers complained that FERC erred in not ordering an evidentiary hearing and said it violated the Clean Water Act. They also raised questions over the staff’s National Environmental Policy Act analysis and whether the project was required “by the public convenience and necessity.”

The commission found the written record was sufficient for it to act and said a “trial-type hearing” was unnecessary. It said its March order complied with the CWA, despite objections from several applicants that the “conditioned certificate order” came before state agencies in Connecticut, Massachusetts and New York had issued their water-quality certifications.

“The commission routinely issues certificates for natural gas pipeline projects subject to the federal permitting requirements of the CWA,” FERC said. “The practical reason is that, in spite of the best efforts of those involved, it may be impossible for an applicant to obtain all approvals necessary to construct and operate a project in advance of the commission’s issuance of its certificate without unduly delaying the project.”

The commission affirmed its original finding that Algonquin demonstrated a need for the AIM project, pointing to “executed long-term firm transportation agreements” with its 10 project shippers for the expansion’s full capacity.

The AIM project will include six new compressor units and have an expected capacity of 342,000 dekatherms/day.

Spectra Energy said the Algonquin and a related Maritimes expansion were a response to the New England governors’ initiative on new energy infrastructure. It said the AIM project will provide the Northeast “with a unique opportunity to secure a cost effective, domestically produced source of energy to support its current demand, as well as its future growth.”

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Prices Down 26% in ISO-NE Capacity Auction

RTO Insider | February 11, 2015

ISO-NE’s 10th Forward Capacity Auction cleared adequate resources at a price 26% lower than last year’s results, the RTO reported on Thursday.

The capacity auction, held Monday for the 2019/20 commitment period, received more than 1,450 MW of new generating capacity.

The price of $7.03/kW-month compares with $9.55/kW-month in last year’s auction. The total cost is about $3 billion, down from $4 billion from last year’s auction.

“Competition was robust in this year’s Forward Capacity Auction,” ISO-NE CEO Gordon van Welie said in a statement “The high participation in the auction demonstrates the interest in the New England marketplace and bodes well for meeting future resource adequacy requirements.”

The region is expected to lose 4,200 MW of coal, oil and nuclear generation by 2019, including the 680-MW Pilgrim Nuclear Power Station.

Preliminary results of FCA 10:

  • About 35,567 MW of capacity cleared the auction to meet the 34,151 MW Installed capacity requirement for 2019-2020.
  • 31,371 MW of generation, including 1,459 MW of new generation.
  • 2,746 MW of demand-side resources, including 371 MW that is new.
  • 1,450 MW of imports from New York and Canada.

Read More:

Natural Gas and Oil Market Update


Natural Gas Prices Move Lower as U.S. Supplies Decline by 70 Billion Cubic Feet

Market Watch | February 11, 2015

Natural gas futures moved lower on Thursday after the U.S. Energy Information Administration reported that supplies of the commodity declined by 70 billion cubic feet for the week ended Feb. 5. That was less than the fall of between 81 billion and 85 billion cubic feet expected by analysts polled by Platts. Total stocks now stand at 2.864 trillion cubic feet, up 573 billion cubic feet from a year ago and 543 billion cubic feet above the five-year average, the government said. March natural gas was at $2.017 per million British thermal units, down 2.9 cents, or 1.4%. Prices traded $2.055 before the supply data.


US Oil Tumbles Close to 2003 Low Amid Brimming Stockpiles

CNBC | February 11, 2015

U.S. oil prices fell for a sixth straight day on Thursday, approaching more than 12-year lows hit last month, weighed by brimming crude inventories and a Goldman Sachs forecast that prices would remain low and volatile until the second half of the year.

Crude inventories in Cushing hit all-time highs just shy of 65 million barrels during the week ended Feb. 5, government data showed on Wednesday.

U.S. West Texas Intermediate (WTI) crude futures were at $26.80 per barrel, down 65 cents, at 1:49 p.m. EDT (1849 GMT). They earlier fell as low as $26.22, within striking distance of the $26.19 intraday low hit on Jan. 20 that was the weakest price since May, 2003.

EIA - Weekly Natural Gas Storage Report

EIA - Weekly Natural Gas Storage Report

Working gas in storage was 2,864 Bcf as of Friday, February 5, 2016, according to EIA estimates. This represents a net decline of 70 Bcf from the previous week. Stocks were 573 Bcf higher than last year at this time and 543 Bcf above the five-year average of 2,321 Bcf. At 2,864 Bcf, total working gas is above the five-year historical range.

NYMEX Natural Gas Week-to-Week Price Change NYMEX Natural Gas Week-to-Week Price Change

Natural Gas Futures - Five Year Price ($ per mmBtu)

NYMEX Natural Gas Week-to-Week Price Change - Five Yearly Snapshot

Disclaimer: The information contained in these reports is gathered from public and/or internal sources and is presented solely for the convenience of our customers and Newsletter Subscribers. Patriot Energy Group makes no representation or warranty, express or implied as to the accuracy or completeness of the information set forth in this newsletter, and Patriot Energy shall not have any liability to any person or entity resulting from use of this information in any way.
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