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Higher power, gas utility demand on Algonquin buoys New England spot gas prices

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Higher power, gas utility demand on Algonquin buoys New England spot gas prices

Strongerresidential and commercial demand alongside increased deliveries to power generatorsdrove a year-on-year uptick in overall AlgonquinGas Transmission LLC system demand during the week ended May 3 thatfostered gains in spot natural gas prices, but pipeline utilization remained mixedversus historical averages.

Duringthe week, flows at the Millennium Mainline segment averaged 903,286 Dth/d for autilization rate of 58.3%, which is below both the May 2015 average of 86.7% andthe prior-summer average of 81.8%. The Southeast and Stony Point compressor stationssaw utilization rates of 59.8% and 98.8%, respectively, against the summer 2015average of 89.9% and 91.7%.

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at delivery points alongthe system that averaged at 2.23 Bcf/d were up 6.0% from the year-ago level, whilenominations at receipt points were 2.9% higher than in the previous year at an averageat 2.15 Bcf/d.

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The spotnatural gas price index during the week at Algon Gates peaked at $2.800/MMBtu onApril 28, before ultimately averaging at $2.594/MMBtu over the course of the reportperiod, reflecting a 6.4% increase from the prior-year figure.

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Increasedflows to gas utilities and the power sector that accompanied reduced deliveriesto interconnected pipelines drove a limited uptick in overall demand and allowedfor pipeline utilization to have mixed comparisons to historical averages.

Together,deliveries to gas utilities and power generators accounted for 60.8% of the week'stotal average demand. LDC demand jumped by 54.5% year on year to 778,025 Dth/d andpower-sector demand rose by 23.8% from the level seen last year to 576,565 Dth/d,as off-system demand fell by 22.8% over the same period to 869,881 Dth/d.

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At 706,814Dth/d and 154,478 Dth/d, respectively, nearly all of the week's off-system demandflowed into interconnections with TexasEastern Transmission LP and IroquoisGas Transmission System LP, with Texas Eastern seeing a 50,576 Dth/dgain in deliveries from Algonquin versus the previous year and Iroquois seeing Algonquinflows drop by 309,630 Dth/d year on year. TennesseeGas Pipeline Co. saw supply from Algonquin average at 8,929 Dth/d overthe course of the review week.

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LDC demandwas mostly higher than in the year ago during the report period, with the largestincrease observed for Boston Gas Co.

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Only25,995 Dth/d of LNG supply found its way on to the system during the review period,as interconnections with Tennessee Gas, MillenniumPipeline Co. LLC and Texas Eastern met 87.4% of the deliveries to Algonquin.Tennessee Gas notched a 147,244 Dth/d year-over-year gain in Algonquin gas flowsas it averaged at 1.10 Bcf/d, while Millennium Pipeline saw deliveries to Algonquinfall by 259,876 Dth/d year on year to 505,182 Dth/d and Texas Eastern saw Algonquingas flows slump by 11,988 Dth/d over the same period to 252,698 Dth/d.

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Market prices and included industrydata are current as of the time of publication and are subject to change. For moredetailed market data, including power, natural gas andcoal indexprices, as well as forwards andfutures, visit our Commodities Pages.To view operational statistics on interstate natural gas pipelines, go to our Pipeline Summary Page. To view naturalgas operational flow data for receipt or delivery points, go to our Operational Capacity by Point Page.