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September 2022 — Energy News

The U.S. natural gas market continues to face many pressures, both domestic and on the international stage.   

Domestic Demand
In the U.S. Energy Information Administration’s (EIA) latest Short-Term Energy Outlook, the EIA predicts U.S. natural gas consumption to average a record 86.6 billion cubic feet per day (Bcf/d) for the year. One of the largest driving factors of this growth is the electric power generation sector.  Despite high natural gas prices, electric power generation from natural gas continues to grow with an average of 32.1 Bcf/d.  Last week, a potential rail strike threatened the second largest power generation source, coal. This sent natural gas prices surging by 10 percent. Once a tentative deal had been made to avert the strike, natural gas prices dropped nine percent.   

International Demand
The demand for U.S. liquified natural gas exports for Europe and Asia continues to be high. Russian gas exports into Germany via Nord Stream 1 are down to just 1.3 Bcf/d this month compared to 10.8 Bcf/D in September 2021. This has pushed natural gas prices up to $65 per mmBtu in Europe. The U.S. currently exports about 11 percent of its natural gas production; however, there are projects under construction to raise that to over 15 percent in the next three years.  

Production & Supply
U.S. natural gas working stocks grew by a larger than expected 77 Bcf on the week ending September 9th. Although the storage injection was larger than expected, U.S. storage remains 11.3 percent under the five-year average at 2.771 trillion cubic feet.

If you have any questions on this information or would like to discuss your natural gas further, please contact your sales representative. 

Market Data – September 2022

Weekly Natural Gas Storage (Values listed in Bcf)
Region
East
Midwest
Mountain
Pacific
South Central
Total
9/09/22
661
809
163
235
904
2,771
9/09/21
635
776
159
238
887
2,694
net change
-9.2
-7.1
-15.5
-2.1
-6.0
-7.4
Information provided by: https://ir.eia.gov/ngs/ngs.html
CME (Henry Hub) Natural Gas Futures (Values listed in dekatherms) 
Date
5/17/22
4/4/22
3/7/22
2/8/22
1/11/22
12/7/21
11/5/21
10/4/21
9/13/21
8/13/21
7/6/21
Price
$8.26
$5.72
$4.93
$4.30
$4.16
$3.60
$5.33
$5.80
$5.21
$3.95
$3.68
https://www.eia.gov/dnav/ng/hist/rngwhhdD.htm
Utility Costs of Gas (Values listed in dekatherms)
Month
September '22
August '22
July '22
June '22
May '22
April '22
March '22
February '22
January '22
December '21
November '21
October '21
September '21
August '21
July '21
June '21
Mid American - IA
$9.60
$5.79
$6.45
$10.33
$9.16
$9.81
$9.29
$9.25
$9.36
$9.76
$9.67
$9.25
$7.99
$7.53
$7.11
$6.35
Alliant - IA
$9.33
$5.09
$3.05
$9.48
$6.34
$5.56
$6.62
$8.01
$8.01
$8.08
$8.69
$8.60
$7.27
$7.14
$6.85
$6.42
Black Hills - IA
$9.27
$6.50
$4.54
$4.97
$5.50
$6.78
$6.78
$6.86
$7.10
$6.27
$6.49
$6.69
$5.51
$5.06
$4.94
$4.97
Black Hills - NE
$9.65
$9.26
$7.22
$9.18
$6.69
$6.03
$5.53
$5.95
$6.83
$6.08
$6.54
$6.81
$5.64
$5.30
$4.80
$4.40
Xcel Small Volume
$9.38
$9.38
$9.38
$5.27
$5.27
$5.27
$4.93
$4.93
$4.93
$5.31
$5.31
$5.31
$4.11
$4.11
$4.11
$3.38
Xcel Large Volume
$9.32
$9.32
$9.32
$5.22
$5.22
$5.22
$4.87
$4.87
$4.87
$5.25
$5.25
$5.25
$4.06
$4.06
$4.06
$3.27
Kansas Gas Service
$12.26
$10.36
$10.99
$9.80
$8.61
$8.22
$8.35
$7.58
$7.46
$7.49
$6.46
$6.22
$5.85
$5.55
$5.11
$5.08
Midwest Energy
$10.86
$8.89
$10.05
$9.41
$7.90
$7.03
$8.43
$7.96
$7.64
$8.19
$7.65
$6.54
$6.23
$5.86
$5.38
NA
Local First of the Month Markets (Values listed in dekatherms)
Month
September '22
August '22
July '22
June '22
May '22
April '22
March '22
February '22
January '22
December '21
November '21
October '21
September '21
August '21
July '21
June '21
NNG Ventura
$8.55
$8.25
$6.20
$8.51
$6.87
$4.83
$4.52
$6.02
$7.21
$5.50
$5.95
$5.44
$4.01
$3.76
$3.41
$2.74
Chicago Citygates
$8.79
$8.45
$6.34
$8.72
$7.11
$5.10
$4.53
$7.02
$5.68
$5.62
$6.29
$5.70
$4.22
$3.89
$3.46
$2.85
Colorado Interstate Gas
$8.54
$8.26
$5.84
$8.42
$6.13
$4.84
$4.35
$4.77
$5.39
$4.91
$4.57
$4.79
$3.67
$3.78
$3.16
$2.67
SouthernStar
$8.40
$8.08
$6.20
$8.50
$6.65
$4.77
$4.41
$6.68
$5.95
$5.59
$5.96
$5.58
$4.00
$3.78
$3.48
$2.83
Pandandle (PEPL)
$8.29
$8.08
$6.00
$8.31
$6.62
$4.76
$4.62
$6.58
$5.38
$5.42
$6.01
$5.40
$3.96
$3.72
$3.33
$2.76
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