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Power-sector demand climbs along Transco as spot natural gas prices fall

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Power-sector demand climbs along Transco as spot natural gas prices fall

Fallingoff-system deliveries and declining demand from the residential and commercialsector brought spot natural gas prices along Transcontinental Gas Pipe Line Co. LLC lower year overyear during the week ended March 30 to help boost power-sector demand.

Duringthe week, nominations at delivery points along the pipeline averaged 8.18Bcf/d, down 6% versus the year-ago week, while nominations for deliveries on tothe pipeline fell 6.1% to 8.51 Bcf/d.

Off-systemdeliveries dropped 10.9% to 2.43 Bcf/d, while power-sector consumption climbed18.5% to 2.25 Bcf/d. Residential and commercial deliveries dropped 27.6% to2.88 Bcf/d, as net injections into storage jumped to 451,266 Dth/d from theyear-ago level of 14,374 Dth/d.

Onthe supply side, a 281,074 Dth/d increase in receipts from interconnectedinterstate and intrastate pipelines failed to offset an 834,120 Dth/d declinein net receipts from the upstream and midstream sectors, leading to a netdecrease in supply year over year.

Duringthe week, deliveries in Zones 4, 5 and 6 accounted for 80.5% of system demand,while receipts in Zones 3, 4 and 6 accounted for 86% of supply coming on to thesystem. Alone, Zone 6 accounted for 48.1% and 40.1% of the week's averagesupply and demand, respectively.

Zone3 saw the week's average supply climb 30.7% to 930,722 Dth/d, as receipts frominterconnected pipelines jumped 81.7% to 711,842 Dth/d, driven predominately bya 236,414 Dth/d increase in flows from ColumbiaGulf Transmission LLC.

Duringthe week, Zone 3 spot natural gas prices averaged $1.746/MMBtu, down 34.5% fromthe year-ago level of $2.665/MMBtu.

AtZone 4, flows from interconnections with other pipelines edged 3.8% higherversus the prior year to 2.29 Bcf/d, driven primarily by a 166,668 Dth/dincrease in flows from MidcontinentExpress Pipeline LLC, which more than offset a 144,117 Dth/ddecline in deliveries from GulfSouth Pipeline Co. LP.

Zone4 off-system deliveries more than doubled to 210,880 Dth/d, driven primarily bya 145,774 Dth/d increase in flows to ElbaExpress Co. LLC.

Spotprices in the zone were down 34.6% year over year to an average of$1.753/MMBtu, a 0.6-cent premium to Zone 3.

Similarly,spot prices in Zone 5 averaged $1.789/MMBtu, a 34.2% decline from the year-agoweek, but a 3.6-cent premium to Zone 4.

Off-systemdeliveries in the zone climbed 22.7% year over year to 375,944 Dth/d, drivenlargely by a 76,911 Dth/d increase in deliveries to and a60,155 Dth/d increase in flows to the Elba Express system. The zone'sdeliveries to interconnections with ColumbiaGas Transmission LLC dropped 96.3% year over year to 3,277 Dth/d.

Residentialand commercial demand in Zone 5 dropped 27.2% to 712,347 Dth/d, led by a 44.5%and 43.5% respective drop in flows to PiedmontNatural Gas Co. Inc. and PublicService Co. of North Carolina Inc. that was partially offset by agreater than six-fold increase in flows to Columbia Gas of Virginia Inc.

TranscoZone 6 saw the lowest spot natural gas prices along the pipeline as pricesdeclined versus the year-ago week. At $1.343/MMBtu for both Zone 6 non-NY andZone 6 NY, average spot prices were down 49.9% and 49.7%, respectively, belowthe year-ago week.

Thedrop in the zone's spot prices comes with a 27.1% drop in demand to 3.28 Bcf/d.Receipts from the midstream sector dropped 16.4% to 2.22 Bcf/d, whiledeliveries from interconnected pipelines fell 12.2% to 1.60 Bcf/d.

led the drop in midstream sector deliveries to Transco as it accounted for45.3% of the zone's net decline.

Meanwhile,average daily flows from TennesseeGas Pipeline Co. remained nearly flat at 212,270 Dth/d as everyother pipeline in the zone saw the week's deliveries onto Transco fall yearover year.

Leadingthe drop in Zone 6 demand was a 49.5% drop in off-system deliveries, the bulkof which was a 527,127 Dth/d drop in flows to interconnections with

Zone6 deliveries to local distribution companies, or LDCs, dropped 28.2% to 1.72Bcf/d, led by an 189,910 Dth/d decrease in flows to

Nearlyall deliveries to power generators took place in Zones 4, 5 and 6, with Zones 4and 5 together accounting for 76% 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 climbed 18.5% to 2.25 Bcf/d, as deliveries inZone 4 slipped 2% to 574,028 Dth/d and deliveries to Zone 5 climbed 22.7% to1.14 Bcf/d. Zone 6 deliveries to the power sector climbed 18.5% to 524,635Dth/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.