Demand May Push Up Gas Prices after 2014
Energy consulting firm ScottMadden’s recently released Energy Industry Update finds that with the advance of shale gas, prices in the natural gas market have shifted from shortage to surplus. However, many expect a step change in 2015–2016 as demand from power generation and LNG exports picks up.
Credit Suisse estimates base case LNG exports of 8.5 BCF/day, while Macquarie sees cumulative natural gas demand growth of 18 BCF/day by year-end 2018 over current 65 BCF/day, more than 25 percent annually. Continued strong demand is expected from industrial customers including petrochemicals, finds ScottMadden.
Observers say that Henry Hub may be waning as the benchmark for Eastern US gas prices for power generation and end use. Increasingly, supply/demand dynamics are reversing, with Northeast US supply and Gulf Coast demand.
Production growth is expected to expand in 2014 despite still-low prices.
- What You Need to Know About Demand Charges
- NAEM Trends Report: Planning for a Sustainable Future
- LED Myths and Facts
- Alarms Management: The Future is Now
- Cox Enterprises Cuts Energy Costs Up to 10-15% in Certain Markets
- How "Fixed" is the Fixed Price Product?
- 2014 Energy and Sustainability Predictions: Findings from Leading Professionals
- The Business Case for Corporate Sustainability Tools
- Dow Chemical Company Optimizes Facility Management Worldwide
- ARC Brief: Infrastructure: The Hidden Optimization Opportunity
- BUYING STRATEGIES IN A VOLATILE MARKET: What Businesses Need to Know about Retail Electricity Procurement
- Smart Building Technology: The Key to Comprehensive Building Performance
- What Energy Managers Need to know about Procuring Natural Gas: Guidance for 2014 Natural Gas Contracts
- Energy Optimization from the Boiler Room to the Board Room
- Your Roadmap for Energy Management: First Stop – Myths & Realities of Energy Purchasing