Friday, May 5, 2017

Natural Gas: EIA Weekly Supply/Demand Report

Yes, yes the hydrocarbon action has been in oil this week but how could one look upon this and not post?
From the Energy Information Administration:

In the News:
First world-scale, greenfield nitrogenous fertilizer plant opened in over 25 years
On April 19, the Iowa Fertilizer Company (IFCo) announced the start of production at its plant in Wever, Iowa. The $3 billion plant is estimated to produce 1.5 to 2 million metric tons (MMmt) of nitrogenous fertilizer products annually, using natural gas as both a feedstock and a fuel.

According to IFCo, it's Wever plant is the first world-scale, greenfield nitrogen fertilizer facility built in the United States in more than 25 years. IFCo's parent company, OCI N.V., produces natural gas-based fertilizers throughout the world and is based in the Netherlands. Foreign investment in the U.S. industrial sector is part of a growing trend in natural gas-intensive manufacturing, such as chemical manufacturing. One of the factors supporting this trend is an extended period of low U.S. natural gas prices, which have made it economical for companies to expand or construct new facilities.

The industrial sector as a whole—which includes methanol and ammonia (or urea-based fertilizer plants)—consumed an average of 21.2 billion cubic feet per day (Bcf/d) of natural gas in 2016, the highest amount since 2000. Natural gas consumption in this sector is forecast to rise in EIA's Short-Term Energy Outlook as new plants come online. In 2015, the United States produced 9.4 MMmt of ammonia—primarily for use as fertilizer—which is projected to grow by 47% through the end of the decade....MORE
Energy and food production in one story, woo-hoo!
Okay, maybe it's just me.
Continuing through the report:

Prices rises slightly. This report week (Wednesday, April 26 to Wednesday, May 3), the Henry Hub spot price rose 7¢ from $3.02/MMBtu last Wednesday to $3.09/MMBtu yesterday. At the Chicago Citygate, prices increased 1¢ from $2.93/MMBtu last Wednesday to $2.94/MMBtu yesterday. Prices at PG&E Citygate in Northern California stayed level week over week at $3.27/MMBtu. The price at SoCal Citygate rose 7¢ from $3.10/MMBtu last Wednesday to $3.17/MMBtu yesterday....

...Demand rises. Total natural gas demand, which includes export volumes to Mexico, rose by 4% compared with the previous report week, while total U.S. consumption of natural gas rose by 3%, according to data from PointLogic. Power burn climbed by 9% week over week. Industrial sector consumption stayed constant, averaging 20.4 Bcf/d. In the residential and commercial sectors, consumption declined by 2%. Natural gas exports to Mexico increased 16%....MUCH MORE
$3.2090 up 0.0230.
Two weeks of action via FinViz: