US liquefied natural gas exports decreased in the past week to six shipments, four from Sabine Pass in Louisiana, one from Cove Point in Maryland and one from Corpus Christi in Texas, compared with eight the previous week, while two vessels were lifting cargoes at Sabine Pass through January 24.
LNG shipments fell as domestic natural gas demand increased over the holiday weekend and the start of the week, according to a report from the Energy Information Administration.
The average total supply of natural gas declined by 1 percent compared with the previous week and net imports from Canada dropped by 6 percent from last week as pipeline exports to Mexico rose by 1 percent.
“Total US consumption of natural gas rose by 4 percent compared with the previous week,” said the EIA.
“In the residential and commercial sectors, consumption increased by 8 percent as cold temperatures spurred heating demand,” it added.
“Natural gas consumed for power generation was flat, averaging 25.3 billion cubic feet per day,” stated the report.
Spot prices fell at most locations with the Henry Hub dropping from $3.61 per million British thermal units to $3.10 per MMBtu.
“Net withdrawals from working gas totaled 163 Bcf for the week. Working natural gas stocks are 2,370 Bcf, which is 1 percent more than the year-ago level and 11 percent lower than the five-year (2014-2018) average for this week,” said the EIA.
“Prices at the Algonquin Citygate, which serves Boston-area consumers, were volatile amid stretches of cold temperatures. Prices went down $7.85 from $11.38 per MMBtu on January 16 to $3.53/MMBtu,” added the report.
“At the Transcontinental Pipeline Zone 6 trading point for New York City, prices decreased $1.06 from $4.04 per MMBtu to $2.98 per MMBtu,” it said.
The EIA said that shale-gas prices in Appalachia fell as temperatures increased and takeaway capacity was restricted.
The Tennessee Zone 4 Marcellus spot prices decreased 67 cents from $3.43 per MMBtu on January 16 to $2.76 per MMBtu.
“Prices at Dominion South in southwest Pennsylvania fell 70 cents from $3.42 per MMBtu to $2.72 per MMBtu,” said the report.
“A combination of factors likely affected prices in the region. As in New England and New York City, cold temperatures throughout the Northeast over the long weekend receded, reducing heating demand,” it added.
“Prices west of the Rockies also decreased as a winter storm that brought snow to the mountains of Southern California moved out of the area,” according to the EIA.
Prices at the Pacific Gas & Electric Citygate in Northern California fell $1.02 per MMBtu to $3.60 per MMBtu.
Southwest and Texas prices were also lower. At the Waha Hub in West Texas, which is located near Permian Basin production activities, prices averaged $2.29 per MMBtu, $1.32 per MMBtu lower than Henry Hub prices.
