North American natural gas flow corridors will be reshaped over the next five years as traditional supply routes, including the U.S. Southeast, become net demand regions.

Tuesday, November 13, 2012

Bentek’s new Market Alert, CellCAST: Volatility Returns to Regional Natural Gas Markets, forecasts more than 30% of total U.S. gas demand from power generation growth over the next five years will take place in the Southeast region. At the same time, Southeast natural gas production will significantly decline. These fundamental changes are expected to make the Southeast 3.3 Bcf/d net supply short by 2017 (compared to 2013) and will prompt renewed price volatility. As the North American gas market becomes tightly integrated over the next few years, regional supply, demand and price changes will have a greater impact on market fundamentals across the continent than ever before. Access the Analysis.

Key takeaways from Bentek’s CellCAST Market Alert:

• Southeast region expected to be net short 3.3 Bcf/d of gas in 2017 compared to 2013, prompting renewed price volatility.
• Northeast region production growth of 9.5 Bcf/d over the next five years will transform the North American gas market.
• Northeast projected to be a net supply region in five years, displacing 6 Bcf/d in pipeline flows to the region.
• The U.S. West is expected to be 0.9 Bcf/d net short gas in 2017 compared to 2013. Changing market conditions will shift gas price premiums to the West.

Join Bentek’s complimentary webinar to dive deep into the fundamental factors causing dramatic shifts in the North American natural gas market and explore how regional supply and demand dynamics impact pipeline flows, infrastructure needs and basis relationships across the continent. Register now.

Topic: Navigating Regional Relationships in the North American Gas Market
Date: Wednesday, Dec. 5, 2012
Time: 2:00-3:00 p.m. MST
Host: Justin Carlson, Bentek Manager, Energy Analysis

This Market Alert was created using CellCAST, Bentek’s new, extensive natural gas dataset that allows you to transparently examine how recent fundamental dynamics will impact regional markets across North America over the next five years. To learn more, access the analysis now available in Bentek’s new Market Alert.