WPA Executive Director’s Monthly Price Report

May 2019

For the month of May 2019, the NYMEX natural gas contract settled at $2.57 per MMBtu.

In contrast, the average of the Kern River Gas Transmission Company and Northwest Pipeline Company representative prices for February 2019 is $3.40 per MMBtu, yielding a basis differential of POSITIVE $0.45 per MMBtu.

On April 29th prices reported by Platts Gas Daily were as follows:

  • Pricing Point Price ($/MMBtu Basis to NYMEX
    Cheyenne Hub )SE Wyoming) $1.62 -$0.95
    Opal Hub (SW Wyoming) $1.62 -$0.95
    Chicago $2.35 -$0.22
    SoCal (Southern California) $1.79 -$0.78
    Waha (West Texas) $0.32 -$2.25

 

1 – Natural gas prices in Wyoming and the price differential to the futures market price (NYMEX) by month, for the last fifteen months. The prices and differentials for SW Wyoming and the Powder River Basin have been separately displayed to highlight the difference in price between SW Wyoming and the PRB that has occurred throughout the winter of 2018-2019

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2 – Long-term natural gas price differentials for Wyoming using a composite price for all of Wyoming

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3 – Representative prices throughout the Western US and Canada. Take note of the extraordinary spot prices experienced at the BC-Washington State border in the last few days. Unusual cold in the entire region, the continued reduction in southbound capacity from production regions in BC and a limitation on withdrawals of gas from the Jackson Prairie storage facility in Oregon (compression outage) have combined to make the demand island of Oregon and Washington susceptible to some of the highest prices ever observed.

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4 – Natural gas in storage through the week ending February 22nd, 2019

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5 – Temperature forecast for May-June-July 2019

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6 – Precipitation forecast for May-June-July 2019.

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7 – Price differential between Wyoming sweet crude oil as reported to the Energy Information Administration (EIA) and the corresponding monthly average NYMEX WTI crude oil futures prompt month contract through November 2018. Owing to reporting delays in the collection of data on crude oil purchases by the EIA, the data is only available on a three to four-month lag

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8 – Current snowpack status in the western US except for most of California. Snowpack is well above normal in most basins

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9 – Snowpack graphs for California. Snowpack is well above normal in California. The take-away from this and chart 8 is the likelihood of above average hydroelectric generation in California and the Pacific Northwest in the coming spring and early summer. Increased hydroelectric generation will put downward pressure on natural gas prices in the west and thus at the Opal Hub as natural gas fueled generation is displaced.

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