Updated Aug 30, 2024
8/30/24
The long-delayed Mountain Valley Pipeline (MVP), designed to move copious amounts of natural gas from Appalachia to the Southeast, gained a long-sought authorization on Tuesday from federal regulators.
When the long-delayed Mountain Valley Pipeline LLC (MVP) starts up in the coming weeks, the natural gas flowing south into downstream markets is not expected to be anywhere near the pipeline’s full 2 Bcf/d capacity.
Natural gas production cuts have stabilized the fuel’s prices by countering weak Lower 48 winter demand, turning the market’s attention to the next big levers for fundamentals: the upcoming summer and added wind and solar capacity.
North American natural gas prices dropped dramatically in 2023 as producers maintained robust production levels in no small part because of drilling efficiencies. At the same time, midstreamers touted the need for more gas egress capacity while the Biden administration’s LNG authorization pause threw a wrench in the outlook for some export capacity projects. Read what NGI analysts learned during 4Q2023 earnings season and how they view supply and demand trends moving forward.
Propelled by its latest tentative offtake agreements, Glenfarne Energy Transition LLC is looking to close deals on the remaining volumes of its 4 million metric ton/year (mmty) Texas LNG project by the end of July.
Slumping natural gas prices offset festering high prices in other corners of the economy and helped to keep overall inflation mostly in check last month.
Regional natural gas forwards generally pushed higher at the front of the curve during the Feb. 29-March 6 trading period as ebbing production strengthened the price outlook for a market dealing with excess supply exiting winter, NGI’s Forward Look data show.
Natural gas futures rallied on Monday after the largest U.S. natural gas producer announced it would cut 1 Bcf/d of output through the end of March, chopping into a supply glut caused by one of the mildest winters on record.
