Observer Reports

Natural gas in the U.S. trades in a robust, integrated national marketplace, tightly coupled with the Canadian market and increasingly influenced by global LNG markets. But at the physical level, all gas markets are local – or at least regional.

Some examples include the how dynamics of natural gas supply/demand on the West Coast can be quite disconnected from East Coast markets. Markets in the Midwest can be more closely tied to Canadian supplies than the Gulf Coast. Until the completion of the Rockies Express Pipeline (REX), the Rockies region frequently resembled an island, cut off from many factors influencing other areas of the country.

To truly understand physical natural gas markets, it is necessary to focus on specific regional developments. Such a regional focus must consider natural gas flows, capacity trends, pipeline outages, behavior of price differentials, weather patterns and a myriad of other market developments. These reports provide daily and weekly details of regional markets in the United States, Canada and Europe.