WPA Executive Director’s Monthly Price Report

July 2018

Brian Jeffries – Wyoming Pipeline Authority

 

  • The average of the Inside FERC Monthly Index Prices for Colorado Interstate Gas (CIG), Kern River Transmission (KERN), and Northwest Pipeline (NWPL) for July 2018 is $2.19. This basket of index prices is representative of the price of natural gas delivered into the interstate pipeline grid in Wyoming. NYMEX for July 2018 settled at $3.00 yielding a basis differential of MINUS $0.81 per MMBtu. Gas produced in the Rockies continues to suffer from greater Canadian and Permian Basin production thus suppressing prices in markets served by Rockies gas.
  • The index price for gas delivered to the Mid-continent (indicative of the price at the terminus of pipelines such as Cheyenne Plains) in July 2018 is $2.24.
  • The index price for Chicago city-gates (representative of the destination of gas moving on Rockies Express Pipeline) for July 2018 is $2.78.
  • The index price for the Malin Hub at the California/Oregon border (representative of the terminus of the Ruby Pipeline) for July 2018 is $2.30.

 

1 – Natural Gas prices in Wyoming and price differential to the futures market price (NYMEX) for the last 36 months

Click image to enlarge

 

 

2 – Differential in price suffered by Wyoming Natural Gas from January 1993 to the present

Click image to enlarge

 

 

3 – Report of Natural Gas in storage through the week ending June 22nd, 2018.

Click image to enlarge

 

 

4 – Temperature deviation from normal forecast for upcoming July-August-September

Click image to enlarge

 

 

 

 

5 – Precipitation deviation from normal forecast for upcoming July-August-September

Click image to enlarge

 

 

 

 

6 – A chart showing the 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 April 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.

Click image to enlarge

 

 

7 – A chart showing representative prices throughout the Western US and Canada that serves to highlight the impact of low Canadian and Permian Basin prices on the destination markets for Wyoming produced natural gas. As discussed in the May 2018 price update, the differential to NYMEX currently being experienced is not caused by inadequate pipeline capacity out of Wyoming, but rather by low prices in Canada and the Permian basin that are caused (1) by competition to Canadian gas for service to midwestern and upper Atlantic states from Ohio, Pennsylvania and West Virginia production and (2) a lack of natural gas pipeline capacity from West Texas to the US Gulf coast.

Click image to enlarge

Comments Off on WPA Executive Director’s Monthly Price Report

Comments are closed.