BENTEK: Outbound natural gas flows drop 45% from Southeast/Gulf to Northeast in March 2012 vs. March 2011

Tuesday, April 03, 2012

BENTEK’s Southeast/Gulf Observer reports that continued Northeast natural gas production growth is putting significant pressure on Southeast outflows through the Ohio Valley region. The six pipeline systems that move gas through the Ohio Valley from the Southeast to major demand centers in the Northeast are flowing substantially less gas. Year-over-year natural gas throughput on these pipelines has declined 36% or 1.9 Bcf/d compared to 2011. Total Ohio Valley flows in March 2012 averaged 3 Bcf/d compared to an average of 5.4 Bcf/d posted for March 2011, a decrease of 45%.

A number of Southeast region market changes have taken place to absorb this displaced supply. Southeast gas demand from power is increasing, and more gas is flowing to the Midcontinent. Texas flows to the Southeast have dropped 1 Bcf/d so far this year. Southeast storage injections also have increased, but this will only provide a temporary solution if Northeast natural gas production growth continues.

Follow BENTEK’s weekly Southeast/Gulf Observer for ongoing analysis of natural gas supply and demand dynamics.

Key features of BENTEK’s Southeast/Gulf Observer:

• Natural gas production, inflows, outflows and storage in the Southeast region, including year-over-year analysis

• Prices, pipeline transportation rates and price spreads for key Southeast flow corridors

• Forward prices and basis for key Southeast and downstream markets

• Southeast/Gulf demand analysis including res/comm, power and demand from other regions

• Infrastructure analysis: Expansions, new builds and maintenance


BENTEK’s full line of Observers provides regional coverage of natural gas supply and demand dynamics, price differentials and inflow/outflow analysis.

BENTEK’s Cell Model database balances supply, demand and storage on a region-by-region basis and provides new visibility into the movement of natural gas in the U.S.

To learn more, please contact your BENTEK sales representative or call BENTEK Sales at 1-888-251-1264.