Last Thursday’s, natural gas storage injection was +56 Bcf. This was slightly above the projection of +40 Bcf to +50 Bcf. The natural gas storage injection projection for the next 2 weeks is in the range of +40 to +50 Bcf. The US EIA is projecting increases in natural gas exports to Mexico due to the completion of the Wahalajara system connecting natural gas demand in Mexico to U.S. natural gas pipeline exports.
The weather throughout the U.S. will continue to rise. As seen by the 6 to 10 day weather outlook from NOAA below, most of the US will be blanketed with extreme heat. Temperatures in Houston and Dallas are expected to reach 100 degrees early this week. If you are behind ERCOT, you need to consider mitigating your risk when it comes to pricing!
Stay tuned for PJM Peak Demand Day alerts.
Unless something significantly changes, such as the temperatures drop or LNG feedgas flows drop, the August 2020 natural gas prices will likely be in the $1.90/MMBTU range.
If you look at future power prices, you will see slight increases across PJM for 2021 through 2024 prices.
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