US Weekly Energy Report - 6 April 2017

Market Commentary

The U.S. Energy Information Administration (EIA) announced on Monday that natural gas storage capacity in 2016 increased modestly from the previous year. After experiencing significant growth in 2013, working storage capacity in the U.S. has seen relatively small incremental growth in each of the last three years, as no new storage facilities have entered service over that period.

With wind generation continuing to surge in the Electric Reliability Council of Texas (ERCOT), state regulators at Tuesday’s Board of Directors Meeting expressed concerns over reliability. Noting that wind generation reached a record 50% of load at one point on March 23, a member of the Public Utility Commission said there is growing concern that reliability in constrained areas could be threatened by a sudden drop in wind output.

According to updates posted to the U.S. Department of Energy’s website this week, several gas export projects have pushed back planned start dates. This slated in-service date for commercial operations on six projects was delayed, including liquefied natural gas (LNG) export terminals in Cameron Parish, LA, Brownsville, TX, and Pascagoula, MS. A compressed gas liquids (CGL) terminal and floating liquefaction storage vessel were also among the delayed projects.

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