APGA Holds Webinar on Summer Gas Outlook

By Dave Schryver posted 06-06-2019 11:47 AM

On June 6, Jenny Fordham, Senior Vice President of Government Affairs for the Natural Gas Supply Association (NGSA), presented a webinar that provided an overview of the 2019 NGSA Summer Outlook. NGSA represents suppliers that produce and market natural gas. In her presentation, Jenny addressed several market pressure points, ranging from weather and the economy to storage and demand. Jenny also addressed wild card factors, such as hurricane activity and the potential impact that tariffs could have on the industrial sector.

Jenny communicated that unlike last summer, which was 20 percent warmer than the 30-year average, this summer is projected to be 14 percent cooler than the previous summer and only 3 percent above the 30-year average. She also communicated that economic growth, while not as strong as last year, is projected to remain strong. Customer demand is anticipated to increase slightly from 2018 with the liquified natural gas (LNG) export market driving that increase. It was also projected that by the end of summer injection season, there will be approximately 500 Bcf more of natural gas in storage than the previous year. Summer production is also projected to increase by approximately 7 Bcf per day than the previous year. Jenny communicated that efficiencies in drilling and production have made wells more productive at lower cost. 

A recording of the webinar and materials will be posted at www.apga.org/webinars. NGSA has also done an annual winter outlook and have a provided a webinar for APGA members, typically around the October timeframe. For questions on this article, please contact Dave Schryver of APGA staff by phone at 202-464-2742 or by email at dschryver@apga.org.