Natural gas prices, production, and exports increasing from 2016 to 2017

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In 2017, healthy gas mark prices during a inhabitant benchmark Henry Hub in Louisiana averaged $3.01 per million British thermal units (MMBtu), about 50 cents per MMBtu aloft than in 2016. The aloft prices in 2017 contributed to less healthy gas expenditure for energy generation. Increased domestic prolongation was equivalent by increasing exports of healthy gas by tube and liquefied healthy gas (LNG) cargoes.

Illustration by U.S. Energy Information Administration.

Overall, healthy gas prices during pivotal informal trade hubs were reduction flighty in 2017 than in prior years, as pipelines that came online via a year eased some infrastructure constraints that impact informal prices. In a Northeast, that tends to have vast cost spikes during durations of cold weather, new tube capacity, along with warmer winter weather, helped to assuage cost volatility. However, record cold temperatures at a finish of Dec in a eastern United States led to record high demand for healthy gas and poignant cost spikes during many trade locations.

Additional takeaway ability in a Appalachian region, a segment with a largest U.S. healthy gas prolongation expansion in 2017, continued to slight cost differences between Henry Hub and circuitously trade hubs such as Dominion South in western Pennsylvania, Transco Zone 6 NY in New York City, and Algonquin Citygate nearby Boston, Massachusetts.

Illustration by U.S. Energy Information Administration.

Until a final few days of 2017, comparatively comfortable winter continue singular healthy gas expenditure expansion in a residential and blurb sectors compared with 2016 levels. However, aloft healthy gas prices contributed to a 6% year-on-year decrease in healthy gas expenditure for energy generation, formed on information by Oct and projections for Nov and December. This decrease was notwithstanding a large boost in healthy gas-fired ability additions in 2017, as spark became some-more rival with healthy gas.

Mild winter temperatures in early 2017 also limited healthy gas storage withdrawals, with the first-ever net injectionrecorded in a month of February. As a result, healthy gas storage inventories ended a injection season lower than final year, though aloft than a prior five-year average.

EIA expects a United States to turn a net exporter of healthy gas on an annual basement in 2017 for a initial time given 1957. The United States is exporting some-more healthy gas to Mexico and some-more LNG to during slightest 20 countries while importing reduction healthy gas by tube from Canada. Although EIA’s monthly healthy gas information for Dec 2017 will not be accessible until a finish of Feb 2018, EIA expects a United States to have exported 0.4 billion cubic feet per day (Bcf/d) some-more healthy gas than it alien in 2017.

U.S. net tube imports from Canada continued to decrease in 2017, in partial since of a commissioning of a initial proviso of the Rover pipeline, that transports healthy gas from a Northeast’s Appalachian supply dish to a Midwest and other markets, shortening Canadian net exports into a Midwest.

Illustration by U.S. Energy Information Administration.

U.S. LNG exports averaged 1.9 Bcf/d in 2017, 1.4 Bcf/d aloft than in 2016, as liquefaction ability continued to expand. Currently, a Sabine Pass LNG depot in Louisiana is handling during near-full ability with additional liquefaction ability to be combined in a nearby future. The Cove Point LNG depot in Maryland plans to start blurb operations in a subsequent few months, and 4 additional LNG projects are underneath construction in Georgia, Texas, and Louisiana. By a finish of 2019, presumption all liquefaction comforts now underneath expansion are completed, EIA expects U.S. liquefaction ability to strech 9.6 Bcf/d, a third largest in a universe behind Qatar and Australia.

Future U.S. tube exports to Mexico are upheld by a near doubling of U.S. trade tube ability to Mexicoby 2019. However, serve expansion in healthy gas tube exports to Mexico will be fortuitous on a timely execution of Mexico’s joining pipelines, that so distant have gifted construction delays.

U.S. marketed healthy gas prolongation increasing by 1% (1 Bcf/d) in 2017, according to EIA’s rough estimates for a year. Regionally, healthy gas production expansion was strong in Appalachia—primarily in a Marcellus and Utica shales. Other regions have also increasing production, including the Anadarko region in Texas and Oklahoma and the Bakken segment in North Dakota.

Source: EIA

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