trending Market Intelligence /marketintelligence/en/news-insights/trending/Fv5OxiFVr-AoJMyxxA0r1g2 content esgSubNav
In This List

Falling off-system demand drags Transco spot prices lower

Blog

Insight Weekly: Labor market recovery hurdles; power market integration; nonbank M&A hunt

Blog

ESG & Technology: Impacts and Implications

Blog

Q&A: Q2'21 Power Forecast: Overheated Power Markets are Here – Who Wins, Who Loses, and Why?

Blog

Essential Energy Insights - October 2021


Falling off-system demand drags Transco spot prices lower

Spotnatural gas prices along TranscontinentalGas Pipe Line Co. LLC declined year over year during the week endedApril 7 as falling off-system deliveries nearly offset increased residentialand commercial deliveries from the pipeline.

Duringthe week, nominations at delivery points along the pipeline averaged 7.96Bcf/d, up 0.9% versus the year-ago week, while nominations for deliveries on tothe pipeline increased 3.1% to 8.62 Bcf/d.

Off-systemdeliveries dropped 12.1% to 2.37 Bcf/d, while power-sector consumption andresidential and commercial deliveries jumped 21.8% and 12.6%, respectively, to1.97 Bcf/d and 3.15 Bcf/d, as net injections into storage declined 50.4% to331,702 Dth/d.

Onthe supply side, a 922,725 Dth/d increase in receipts from interconnectedinterstate and intrastate pipelines more than offset a 660,869 Dth/d decline innet receipts from the upstream and midstream sectors, leading to a net increasein supply year over year.

Duringthe week, deliveries in Zones 4, 5 and 6 accounted for 81.3% of system demand,while receipts in Zones 3, 4 and 6 accounted for 86.1% of supply coming on tothe system. Alone, Zone 6 accounted for 48.9% and 42.4% of the week's averagesupply and demand, respectively.

Zone3 saw the week's average supply climb 8.4% to 834,180 Dth/d, as receipts frominterconnected pipelines jumped 42.8% to 628,819 Dth/d, led by a 122,373 Dth/dincrease in flows from ANRPipeline Co.

Duringthe week, Zone 3 spot natural gas prices averaged $1.855/MMBtu, down 28.6% fromthe year-ago level of $2.598/MMBtu.

AtZone 4, flows from interconnections with other pipelines climbed 29.6% versusthe prior year to 2.37 Bcf/d, driven primarily by a 287,604 Dth/d increase inflows from Midcontinent ExpressPipeline LLC.

Zone4 off-system deliveries more than doubled to 200,092 Dth/d, driven primarily bya 181,400 Dth/d increase in flows to ElbaExpress Co. LLC.

Spotprices in the zone were down 28.9% year over year to an average of$1.856/MMBtu, a 0.1-cent premium to Zone 3.

Similarly,spot prices in Zone 5 averaged $1.938/MMBtu, a 26.9% decline from the year-agoweek, but an 8.2-cent premium to Zone 4.

Off-systemdeliveries in the zone climbed 81.6% year over year to 331,390 Dth/d, drivenlargely by a 93,842 Dth/d increase in deliveries to the Elba Express pipeline.

Residentialand commercial demand in Zone 5 jumped 35.5% to 877,041 Dth/d, as more thanhalf of the week's flows went to PiedmontNatural Gas Co. Inc. and PublicService Co. of North Carolina Inc.

TranscoZone 6 saw the lowest spot natural gas prices along the pipeline as pricesdeclined versus the year-ago week. At $1.633/MMBtu and $1.701/MMBtu,respectively, for Zone 6 non-NY and Zone 6 NY, average spot prices were down30.2% and 29.7% below the year-ago week.

Thedrop in the zone's spot prices comes with a 6.5% drop in demand to 3.38 Bcf/d.Receipts from the midstream sector dropped 6.7% to 2.28 Bcf/d, and a 0.4%increase in deliveries from interconnected pipelines failed to offset thatdecline.

led the drop in midstream deliveries to Transco as flows from the midstreamoperators dropped 164,770 Dth/d collectively.

Meanwhile,the zone saw roughly offsetting changes in flows from interconnected interstatepipelines as nominations ticked 6,721 Dth/d higher year over year.

Leadingthe drop in Zone 6 demand was a 30.1% drop in off-system deliveries, the bulkof which was a 200,772 Dth/d drop in flows to interconnections with

Onbalance, Zone 6 deliveries to local distribution companies, or LDCs, edged 0.7%higher, led by a 192,881 Dth/d increase in flows to a group of points servingConsolidated Edison Co. of NewYork Inc. and NationalGrid USA that offset declines in flows to

Nearlyall deliveries to power generators took place in Zones 4, 5 and 6, with Zones 4and 5 together accounting for 76.7% of the week's average flows to the powersector, and Zone 6 accounting for the bulk of the remainder. Total systemdeliveries to the power sector slipped 4.8% to 474,762 Dth/d in Zone 4, whilethey climbed 32.1% to 1.03 Bcf/d in Zone 5. Zone 6 deliveries to the powersector jumped 40.3% to 446,940 Dth/d.

Marketprices and included industry data are current as of the time of publication andare subject to change. For more detailed market data, including power, natural gas and coal index prices, as well as forwards and futures, visit our energy commodities pages. To view operational statistics oninterstate natural gas pipelines, go to our Pipeline Summary Page. To view natural gas operational flow datafor receipt or delivery points, go to our Operational Capacity by Point Page.