U.S. gas group predicts record production, demand for the coming winter

first_imgU.S. gas group predicts record production, demand for the coming winter FacebookTwitterLinkedInEmailPrint分享S&P Global Market Intelligence ($):As record gas production keeps pace with historic demand, market dynamics may put continued downward pressure on gas prices this winter, according to the Natural Gas Supply Association.The group predicted record average demand of 109.3 Bcf/d, driven largely by LNG and pipeline exports and by growing use of gas in the power sector, where 7 GW of gas-fired generation is estimated to have come online this year, according to the association’s 2019-2020 winter outlook.Tempering that expected consumption increase, however, may be warmer weather and minimal industrial demand growth, slowed by trade uncertainties, the association, or NGSA, report projected.The association predicted 4% year-on-year production growth, compared with last winter’s 14% uptick. The outlook relies on published data and independent analysis and is prepared by Energy Ventures Analysis. Dry gas production is slated to average a record 92 Bcf/d this winter, and associated gas production from the Permian Basin should comprise the largest increase among supply areas, supported by new pipeline connections, the outlook said.The supply side should be supported by ample storage, with a start-of-winter inventory that is 2% above the five-year average, putting total supply at 109 Bcf/d, including 4.7 Bcf/d of imports from Canada, according to the report.Domestically, electricity demand is also on the rise, forecasted to be 27.0 Bcf/d — up from 25.7 Bcf/d last winter — according to the NGSA outlook. Low gas prices have encouraged dispatch of gas-fired generation and amid a structural shift to additional gas-fired plant.More ($): Record U.S. gas production to keep winter prices down, industry group outlook sayslast_img

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