Updated Aug 30, 2024
8/30/24
With recent estimates appearing to confirm a ramp in production, natural gas futures were modestly lower through midday trading Friday, even as demand-side factors leaned bullish. Cash prices were mostly lower as weekend days and the startup of the Mountain Valley Pipeline LLC (MVP) added pressure.
Equitrans Midstream Corp. announced Friday that Mountain Valley Pipeline LLC (MVP), the 2 million Dth/d natural gas conduit that will move supply from Appalachia to the Southeast, has begun service.
Natural gas futures fell Wednesday as traders’ attention shifted back to likely supply additions in the East from the start-up of the Mountain Valley Pipeline LLC (MVP).
Natural gas futures were gaining back a modest chunk of their pre-holiday losses through midday trading Tuesday, supported by warm-leaning forecasts and strengthening export demand.
While data centers and artificial intelligence (AI) may dominate the news, investments by large load industrial and manufacturing sectors, particularly in the U.S. Southeast, are driving a significant portion of an expected rise in natural gas consumption.
As bidweek continued into a second day Thursday (April 25), baseload prices maintained the weak tenor established in Wednesday’s opener, according to NGI’s Bidweek Alert (BWA).