Relevant • Independent • Objective
The North American natural gas market is seethed, the lingering oversupplied market is supported by low breakeven costs of production that push most of the price indices in a downward trend. Over the 2010-2017 period, the natural gas monthly average price oscillated in a band from $2/MMBtu to $6/MMBtu for most of the indices.2 Since 2016, except for the seasonal winter peak, the range has narrowed to $2-$4/MMBtu. In 2017, AECO-C, the main western Canadian index for gas prices barely exceeded $2/MMBtu3 except for the months of March, April and May (Figure 1). Figure 1: Natural Gas Monthly Index Spot Prices
Source: CERI, Argus Media
Much of Canada’s natural gas supply is produced within the Western Canadian Sedimentary Basin (WCSB), with current production at more than 15 billion cubic feet per day (Bcf/d).4 The Liard basin, Horn River, Montney, Duvernay, Alberta Deep basin and Williston in the southern part of Saskatchewan are the leading Canadian producing plays. Alberta production (10.6 Bcf/d) grew by 1% in 2017 from 2016, driven by the Montney and Mannville formations.5 For the near-term, the Alberta Energy Regulator (AER) forecasts that Montney, Upper Mannville, and Duvernay formations will grow and contribute up to 70% of total Alberta production in 2027.6 Although British Columbia’s gas production grew slightly (almost 1%) to 4.5 Bcf/d,7 mainly from the Montney, the province produced 40,000 bbl/d of condensate (plant and wellhead combined), an attractive byproduct with an average price of CAN$76/bbl,8 which will drive the drilling activity in the play. On the other hand, Saskatchewan’s marketable natural gas supply decreased by 1.7% with monthly average peak
March 2018
CERI Natural Gas Report
Canadian Natural Gas Industry - A Year in Review Alpha Sow In the past, the North American natural gas market had two advantages – a continental market that was running low on gas supply, and price peaks during abnormal temperatures. These two facts helped producers enjoy relatively high prices (up to US$10/MMBtu for AECO-C in December 2000)1 for years before the disruptive effect of the shale gas boom in the US. 2017 was a transition year – described as a year: Where a continental market set itself to go global
through higher LNG exports from the US Where Canadian producers were not increasing their
natural gas production with expectations of an even gloomier drilling outlook caused by existing oversupply and shrinking export markets for Canadian gas
Where high price volatility due to swinging temperatures.
The gas market is currently driven by four opposing forces: The increase in productivity and decrease of supply
costs The boom of LNG projects in the US and potential
prospect projects in Canada The extreme winter weather and temperature
swings An effective pipeline infrastructure plan in the US to
reduce regional supply/demand mismatch particularly in the US mid-continent.
CERI Natural Gas Report Editorial Committee: Ganesh Doluweera, Dinara Millington, Megan Murphy, Allan Fogwill About CERI The Canadian Energy Research Institute is an independent, not-for-profit research establishment created through a partnership of industry, academia, and government in 1975. Our mission is to provide relevant, independent, objective economic research in energy and related environmental issues. For more information about CERI, please visit our website at www.ceri.ca or contact us at [email protected].
CERI Natural Gas Report
Page 2
production in December 2017 of 418 million cubic feet per day (MMcf/d) against 428 MMcf/d a year earlier in 2016.9 AECO-C spot price and its differential with other indexes are influenced by pipeline availability, eastern Canada and US northeast demand, and active gas storage levels. Overall, the AECO-C 2017 price increased by 9.8% compared to 2016 levels with a record low of CAN$-0.55/GJ10 in September due to a disruption on the TransCanada Mainline that brings western gas supply to eastern markets. Figure 2: Canada Export Market
Source: CAPP
Canada natural gas net pipeline exports to the US amounted to 5.8 Bcf/d, down from 6 Bcf/d in 2016.11 The decrease in value has deepened from CAN$10.7 billion in 2014 to CAN$6.7 billion in 2017. Traditionally, exports flow to the west, mid-west and east as illustrated in Figure 2. The export points at Huntingdon and Kingsgate in the east are increasing and situated well above 1000 Bcf.12 The trend is downward for the two other export regions where the Midwest volumes decreased from 1,842 Bcf in 2011 to 1,640 Bcf in 2017.13 The eastern volumes represent half of the western supply and are steadily decreasing from 575 Bcf in 2010 to 259 Bcf in 2017.14 The shrinking export market has pushed Canadian suppliers and TransCanada to an agreement that led to a cut in pipeline tolls to increase Canadian competitiveness against US producers. The rate is set at CAN$0.77/GJ ($US 0.61 /MMBtu)15 from the Empress receipt point in Alberta to the Dawn Hub in Ontario. The rate is supposed to help western Canadian producers compete with the booming Utica and Marcellus plays. Also, the rate is set
lower than the following US competing pipelines ($US 0.70 - 1/MMBtu):16 The Nexus pipeline is 255 miles long with a capacity
of 1.5 Bcf/d17 and delivers Appalachian shale gas to the high demand markets of Ohio, Michigan, Chicago, and Ontario.
The Rover pipeline is 713 miles long and designed to transport 3.25 Bcf/d18 of Marcellus and Utica supply to the Dawn Hub in Ontario and then redistribute it to US markets.
The competition against western Canadian gas does not stop at Ontario and Quebec. Many other infrastructure projects are planned to refuel the US mid-continent (Figure 3). The 3.25 Bcf/d Rover pipeline will supply the mid-continent and the approved Atlantic Sunrise Pipeline (1.7Bcf/d)19 will move Pennsylvania gas to the mid-Atlantic and southeastern states. Figure 3: Natural Gas Pipeline Projects Certificated by the US-FERC in 2017
Source: EIA
All these planned infrastructure projects will support the ever-increasing shale gas production in the US. The associated gas from the Permian Basin is estimated to rise to an average of 8 Bcf/d from 2017 to 2020 and will be transported by the Northern Natural Gas Pipeline (NNG) and the Natural Gas Pipeline Company of America to the mid-continent. The Bakken’s gas production, which was at an all-time record in 2017, is also heading to Chicago through Northern Border Pipeline. The US supply is also powered by Haynesville, a gas-rich play in east Texas and northern Louisiana. It is the fastest growing field with production of 4.8 Bcf/d in 2017,20 surpassing the growth rate of the Marcellus basin. A high price of US$3/MMBtu supported increased production,
Relevant • Independent • Objective
Page 3
and active drilling activity doubled from 2016. The production is slated for markets in the southeast and along the Gulf Coast as well as upcoming LNG exports. The EIA estimated that 2017 US dry gas production averaged 73.6 Bcf/d, and forecast an additional increase of 8.1 Bcf/d in 2018, whereas US consumption is 74.2 Bcf/d, down from 75.1 Bcf/d in 2016 – a decrease caused by a higher rate of renewable generation in the electricity sector. This could be a long-term trend in jurisdictions such as California, which is cancelling planned gas power plants, closing natural gas storage facilities and is progressively shifting away from natural gas-fired generation. The state of California planned to introduce a new regulation that will impact how natural gas is moved, stored and consumed within its borders. The heating degree days in winter 2017 were on average 13% colder than 2016, increasing household natural gas consumption. The incremental future gas demand in the mid-continent will be driven by the electricity sector which is projected to increase by 5.7% in 2018;21 all other end-users demand is expected to be flat. While the internal demand is flattening, the possibility of gas exports to Asia is increasing through LNG. US LNG exports will increase significantly in coming years and is expected to offset part of the oversupply. Besides the current Louisiana Sabine Pass terminal that started in 2016 and operates at full capacity with fours trains (60 mm t/year), three other projects are scheduled to come online in 2018 – Dominion Cove Point LNG in Maryland, Elba Island LNG in Georgia and Freeport LNG in Texas – with a cumulative peak capacity of 4.2 Bcf/d.22 Many others are planned and forecasted to start up in the early 2020s. A positive Final Investment Decision (FID) is expected in 2018 in Texas for Corpus Christi train 3, Golden Pass LNG, Rio Grande LNG, Louisiana-Magnolia LNG, Driftwood LNG, Gulf of Mexico-Delfin LNG, and Jordan Cove LNG in Oregon.
The Canadian working gas storage level in 2017 was higher than 2016 for half of the year; the storage peaked in October at 970 Bcf,23 higher than the five-year average (see Data Appendix). On the contrary, the US working gas storage was lower than the previous year and close to the five-year average. For the first part of 2017, the monthly average was between the five-year range on the lower side and 2016 levels on the upper side (see Data Appendix). The industrial sector and power generation represent a significant part of Canadian natural gas demand, ranging from 5 Bcf/d to 7.5 Bcf/d24 in 2017, well above 2016 monthly averages of 4.6 and 6.3 Bcf/d.25 The prospect of electricity grid transition from coal to natural gas as well as increase of renewable variable sources will increase the demand for natural gas in the upcoming years. Residential demand in 2017 varied between a five-year low of 0.4 Bcf/d to 3.3 Bcf/d26 but slightly higher than 2016, whereas commercial demand is sited in the five-year average range of 0.5 Bcf/d to 2.6 Bcf/d.27 The demand growth is expected to be marginal; methane derived petrochemicals seem to be another option to absorb the oversupply. Although the economic potential is significant, the volume of feedstock required is insignificant compared to current volumes. The feedstock volume ranges from 0.15 to 0.6 Bcf/d per plant for the most attractive derivatives. Despite a keen interest in LNG, only a few projects in Canada will likely move forward. Goldsboro and Bear Head in Nova Scotia and LNG Canada on the west coast are the furthest along. None of the projects have issued FID’s. The natural gas market is temporary oversupplied pushing prices downward, which could lead to a decrease in drilling activity in the short term until the new demand emerges such as LNG or petrochemicals activity. For now, Canadian producers are restrained by the size of the domestic market and fierce competition from US producers from both sides of the border.
CERI Natural Gas Report
Page 4
Endnotes 1www.argusmedia.com 2ibid 3ibid 4www.neb-one.gc.ca 5www.aer.ca 6ibid 7www.neb-one.gc.ca 8www.petersco.com 9www.neb-one.gc.ca 10www.direct.argusmedia.com 11www.neb-one.gc.ca 12ibid 13ibid 14ibid 15www.direct.argusmedia.com 16ibid 17www.eia.gov 18ibid 19ibid 20www.direct.argusmedia.com 21www.direct.argusmedia.com 22www.eia.gov 23http://www5.statcan.gc.ca 24CERI calculation 25CERI calculation 26www.neb-one.gc.ca 27www.neb-one.gc.ca
References https://direct.argusmedia.com/ http://www.aer.ca/data-and-publications/statistical-reports/natural-gas-production https://www.eia.gov/todayinenergy/detail.php?id=30232 https://www.eia.gov/dnav/ng/ng_prod_sum_a_EPG0_VGM_mmcf_m.htm https://www.eia.gov/dnav/ng/ng_cons_sum_dcu_nus_m.htm https://www.energy.gov/fe/listings/lng-reports https://www.ferc.gov/industries/gas/indus-act/lng/lng-approved.pdf https://apps.neb-one.gc.ca/CommodityStatistics/Statistics.aspx?language=english https://www.neb-one.gc.ca/nrg/ntgrtd/ftr/2017ntrlgs/index-eng.html http://www.cpc.ncep.noaa.gov/products/analysis_monitoring/cdus/pastdata/degree_days/ http://www.cga.ca/gas-stats/
Relevant • Independent • Objective
Page 5
SOU
RC
E: C
ERI,
Pla
tts
Gas
Dai
ly P
rice
Gu
ide.
SO
UR
CE:
CER
I, P
latt
s G
as D
aily
Pri
ce G
uid
e.
SOU
RC
E: C
ERI,
Pla
tts
Gas
Dai
ly P
rice
Gu
ide.
SO
UR
CE:
CER
I, P
latt
s G
as D
aily
Pri
ce G
uid
e.
-$2
$0
$2
$4
$6
$8
$1
0
$1
2
$1
4
$1
6 Jan
-06
Jul-
07
Jan
-09
Jul-
10
Jan
-12
Jul-
13
Jan
-15
Jul-
16
Jan
-18
Dif
fere
nti
al
He
nry
Hu
bA
EC
O-C
He
nry H
ub
/AE
CO
-CB
eg
inn
ing
of N
ex
t M
on
th
Sp
ot P
ric
e (
US
$/M
MB
tu
)
-$8
-$6
-$4
-$2
$0
$2
$4
$6
$8
$1
0
$1
2
$1
4
$1
6 Jan
-06
Jul-
07
Jan
-09
Jul-
10
Jan
-12
Jul-
13
Jan
-15
Jul-
16
Jan
-18
Dif
fere
nti
al
He
nry
Hu
bC
hic
ag
o
He
nry
Hu
b/C
hic
ag
oB
eg
inn
ing
of N
ex
t M
on
th
Sp
ot P
ric
e (
US
$/M
MB
tu
)
-$8
-$6
-$4
-$2
$0
$2
$4
$6
$8
$1
0
$1
2
$1
4
$1
6 Jan
-06
Jul-
07
Jan
-09
Jul-
10
Jan
-12
Jul-
13
Jan
-15
Jul-
16
Jan
-18
Dif
fere
nti
al
He
nry
Hu
bC
hic
ag
o
He
nry
Hu
b/C
hic
ag
oB
eg
inn
ing
of N
ex
t M
on
th
Sp
ot P
ric
e (
US
$/M
MB
tu
)
-$6
-$4
-$2
$0
$2
$4
$6
$8
$1
0
$1
2
$1
4
$1
6 Jan
-06
Jul-
07
Jan
-09
Jul-
10
Jan
-12
Jul-
13
Jan
-15
Jul-
16
Jan
-18
Dif
fere
nti
al
He
nry
Hu
bS
. C
ali
forn
ia
He
nry H
ub
/So
uth
ern
Ca
lifo
rn
iaB
egin
nin
g o
f N
ext M
onth S
pot P
ric
e (
US
$/M
MB
tu)
CERI Natural Gas Report
Page 6
SOU
RC
E: C
anad
ian
Gas
Ass
oci
atio
n.
NO
TE:
Sep
tem
ber
, Oct
ob
er a
nd
No
vem
ber
HD
D’s
esti
mat
ed
by
CER
I.
SOU
RC
E: C
ERI,
Can
adia
n G
as A
sso
ciati
on
, Sta
tisti
cs C
anad
a.
SOU
RC
E: N
OA
A.
SOU
RC
E: C
ERI,
NO
AA
, EIA
.
0
10
0
20
0
30
0
40
0
50
0
60
0
70
0
80
0
JF
MA
MJ
JA
SO
ND
5-Y
ea
r A
ve
rage
20
16
20
17
Ca
na
dia
n H
ea
tin
g D
eg
re
e D
ays
01234567
Jan
-09
Jan
-10
Jan
-11
Jan
-12
Jan
-13
Jan
-14
Jan
-15
Jan
-16
Jan
-17
0
20
0
40
0
60
0
80
0
1,0
00
1,2
00
De
gre
e D
ay
sC
on
sum
pti
on
(B
cfp
d)
Ca
na
dia
n H
eatin
g D
eg
re
e D
ays (l)
vs R
esid
en
tia
l a
nd
Co
mm
erc
ial C
on
su
mptio
n (
r)
0
10
0
20
0
30
0
40
0
50
0
60
0
70
0
80
0
90
0
1,0
00
JF
MA
MJ
JA
SO
ND
5-Y
ea
r A
ve
rage
20
16
20
17
US
He
atin
g D
eg
re
e D
ays
010
20
30
40
50
60
Jan
-09
Jan
-10
Jan
-11
Jan
-12
Jan
-13
Jan
-14
Jan
-15
Jan
-16
Jan
-17
0
20
0
40
0
60
0
80
0
1,0
00
1,2
00
De
gre
e D
ay
sC
on
sum
pti
on
(B
cfp
d)
US
He
atin
g D
eg
re
e D
ays (l)
vs
Re
sid
en
tia
l a
nd
Co
mm
erc
ial C
on
su
mp
tio
n (
r)
Relevant • Independent • Objective
Page 7
SOU
RC
E: E
nvi
ron
men
t C
anad
a.
SOU
RC
E: E
nvi
ron
men
t C
anad
a.
SOU
RC
E: N
OA
A.
SOU
RC
E: N
OA
A.
CERI Natural Gas Report
Page 8
SOU
RC
E: N
OA
A.
SOU
RC
E: E
nvi
ron
men
t C
anad
a.
SOU
RC
E: N
OA
A.
Relevant • Independent • Objective
Page 9
NO
TE:
As
of
Jan
uar
y 2
01
6, S
tats
Can
ch
ange
d t
he
con
ten
t an
d m
eth
od
olo
gy o
f C
anad
ian
nat
ura
l ga
s co
nsu
mp
tio
n.
Use
rs s
ho
uld
use
cau
tio
n c
om
par
ing
curr
ent
dat
a w
ith
his
tori
cal d
ata
SO
UR
CE:
Sta
tisti
cs C
anad
a.
SOU
RC
E: S
tati
stics
Can
ada,
NEB
.
SOU
RC
E: E
IA.
SOU
RC
E: E
IA.
02468
10
12
14
16 Ja
n-0
9Ja
n-1
0Ja
n-1
1Ja
n-1
2Ja
n-1
3Ja
n-1
4Ja
n-1
5Ja
n-1
6Ja
n-1
7
Ind
ust
ria
l +
Po
we
rR
esi
de
nti
al
Co
mm
erc
ial
Ca
na
dia
n C
on
su
mp
tio
nB
y S
ect
or
(Bcf
pd
)
02468
10
12
14
16
18
20 Ja
n/0
9Ja
n/1
0Ja
n/1
1Ja
n/1
2Ja
n/1
3Ja
n/1
4Ja
n/1
5Ja
n/1
6Ja
n/1
7
BC
, Y
uk
on
, NW
TA
BS
KE
ast
Co
ast
Ca
na
dia
n M
arke
ta
ble
Pro
du
ctio
n
By P
ro
vin
ce/R
eg
ion (B
cfp
d)
0
20
40
60
80
10
0
12
0 Jan
-09
Jan
-10
Jan
-11
Jan
-12
Jan
-13
Jan
-14
Jan
-15
Jan
-16
Jan
-17
Ind
ust
rial
Ele
ctr
ic P
ow
er
Co
mm
erc
ial
Re
sid
en
tial
US
Co
nsu
mp
tio
nB
y S
ec
tor (B
cfp
d)
0
10
20
30
40
50
60
70
80
90 Ja
n-0
9Ja
n-1
0Ja
n-1
1Ja
n-1
2Ja
n-1
3Ja
n-1
4Ja
n-1
5Ja
n-1
6Ja
n-1
7
US T
ota
lT
exa
sP
en
nsy
lvan
iaO
kla
ho
ma
Lou
isia
na
Co
lora
do
US
Ma
rk
eta
ble
Pro
du
ctio
n,
To
p P
ro
du
ctio
n S
ta
te
s
(Bcf
pd
)
CERI Natural Gas Report
Page 10
SOU
RC
E: S
tati
stics
Can
ada,
NEB
. SO
UR
CE:
Sta
tisti
cs C
anad
a, N
EB.
SOU
RC
E: S
tati
stics
Can
ada,
NEB
. SO
UR
CE:
Sta
tisti
cs C
anad
a, N
EB.
0123456
JF
MA
MJ
JA
SO
ND
20
15
20
16
20
17
BC
, Y
uk
on
, N
WT
Ma
rk
eta
ble
Pro
du
ctio
n (
Bc
fpd
)
02468
10
12
14
16
JF
MA
MJ
JA
SO
ND
20
15
20
16
20
17
Alb
erta
Ma
rk
eta
ble
Pro
du
ctio
n (
Bc
fpd
)
0.0
0.3
0.5
JF
MA
MJ
JA
SO
ND
20
15
20
16
20
17
Sa
sk
atc
he
wa
n M
ark
eta
ble
Pro
du
ctio
n (
Bc
fpd
)
0.0
0
0.2
5
0.5
0
JF
MA
MJ
JA
SO
ND
201
52
01
62
01
7
Ea
st C
oa
st M
ark
eta
ble
Pro
du
ctio
n (
Bc
fpd
)
Relevant • Independent • Objective
Page 11
SOU
RC
E: C
ERI,
TC
PL,
Wes
tco
ast
Ener
gy.
No
te:
Alli
ance
del
iver
ies
wer
e n
ot
avai
lab
le b
etw
een
Dec
. 1/1
5 a
nd
Jan
. 16
/16
.
SOU
RC
E: C
ERI,
TC
PL,
Alli
ance
Pip
elin
e.
SOU
RC
E: N
EB.
SOU
RC
E: N
EB.
02468
10
12
14
16
18
JF
MA
MJ
JA
SO
ND
20
15
20
16
20
17
Syste
m F
ield
Re
ce
ipts
Tra
nsC
an
ad
a +
Westc
oast; M
on
thly
Ave
ra
ge
(B
cfp
d)
02468
10
12
14
No
v/1
6Ja
n/1
7M
ar/1
7M
ay/1
7Ju
l/1
7Se
p/1
7N
ov/
17
Em
pre
ssM
cNe
illA
B-B
CA
llia
nce
Alb
erta
Syste
m D
elive
rie
s (
Bc
fpd
)
0123456789
Jan
/17
Mar
/17
May
/17
Jul/
17
Sep
/17
No
v/1
7Ja
n/1
8
Kin
gsg
ate
Mo
nch
yE
lmo
reH
un
tin
gdo
n
Ca
na
dia
n G
as E
xp
orts t
o t
he
US
By E
xp
ort P
oin
t -
We
st (
Bc
fpd
)
01234
Jan
/17
Mar
/17
May
/17
Jul/
17
Sep
/17
No
v/1
7Ja
n/1
8
Em
ers
on
Iro
qu
ois
Nia
gar
aE
ast
He
refo
rdSt
. C
lair
Oth
ers
Ca
na
dia
n G
as E
xp
orts t
o t
he
US
By E
xp
ort P
oin
t -
Ea
st (B
cfp
d)
CERI Natural Gas Report
Page 12
SOU
RC
E: N
EB.
SOU
RC
E: N
EB.
SOU
RC
E: N
EB, E
IA.
SOU
RC
E: N
EB.
02468
10
12
Jan
/17
Mar
/17
May
/17
Jul/
17
Sep
/17
No
v/1
7Ja
n/1
8
We
stM
idw
est
Ea
st
US
Im
po
rts o
f C
an
ad
ian
Ga
sB
y U
S R
eg
ion (
Bcfp
d)
02468
Jan
/17
Mar
/17
May
/17
Jul/
17
Sep
/17
No
v/1
7Ja
n/1
8
We
stM
idw
est
Ea
st
Ave
ra
ge
Ca
na
dia
n E
xp
ort P
ric
eB
y U
S R
eg
ion (
C$/G
J)
02468
10
12 D
ec/
16
Feb
/17
Ap
r/1
7Ju
n/1
7A
ug/
17
Oct
/17
De
c/1
7
Ca
na
da
Me
xico
To
ta
l U
S P
ipe
lin
e G
as I
mp
orts (
Bc
fpd
)
01234
Jan
/17
Mar
/17
May
/17
Jul/
17
Sep
/17
No
v/1
7Ja
n/1
8
Co
urt
righ
tSa
rnia
St.
Cla
irO
the
r
Ca
na
dia
n G
as I
mp
orts
By I
mp
ort P
oin
t (
Bc
fpd
)
Relevant • Independent • Objective
Page 13
SOU
RC
E: U
S. D
OE.
SOU
RC
E: U
S D
OE.
SOU
RC
E: U
S D
OE.
No
te:
Ther
e w
ere
no
LN
G im
po
rts
for
the
mo
nth
of
No
vem
ber
20
14
.
SOU
RC
E: U
S D
OE.
02468
10
12
14
16
De
c/1
5M
ar/1
6Ju
n/1
6Se
p/1
6D
ec/
16
Mar
/17
Jun
/17
Sep
/17
De
c/1
7
Co
ve P
oin
tE
lba
Isl
an
dE
vere
ttN
E G
ate
wa
yN
ep
tun
e
Ea
ste
rn
US
LN
G I
mp
orts B
y F
ac
ilit
y (
Bc
f)
02468
De
c/1
5M
ar/
16
Jun
/16
Se
p/1
6D
ec/
16
Ma
r/1
7Ju
n/1
7S
ep
/17
De
c/1
7
Fre
ep
ort
La
ke
Ch
arl
es
Sa
bin
e P
ass
Ca
me
ron
Go
lde
n P
ass
Gu
lf L
NG
US
Go
M L
NG
Im
po
rts B
y F
ac
ilit
y (
Bc
f)
05
10
15
20
De
c/1
5M
ar/1
6Ju
n/1
6Se
p/1
6D
ec/
16
Mar
/17
Jun
/17
Sep
/17
De
c/1
7
Nig
eri
aT
rin
ida
dN
orw
ay
Ye
me
n
US
LN
G I
mp
orts B
y O
rig
in (
Bc
f)
02468
10
12
14
JF
MA
MJ
JA
SO
ND
20
15
20
16
20
17
Volu
me-W
eig
hted A
verage L
NG
Pric
e (
US
$/M
MB
tu)
CERI Natural Gas Report
Page 14
SOU
RC
E: U
S D
OE,
NEB
.
SOU
RC
E: E
IA, U
S D
OE.
SO
UR
CE:
US
DO
E.
0
10
20
30
40
50
60
70
80
90
De
c/1
5M
ar/1
6Ju
n/1
6Se
p/1
6D
ec/
16
Mar
/17
Jun
/17
Sep
/17
De
c/1
7
Chart
Title
Lith
ua
nia
Un
ite
dK
ing
do
mP
ola
nd
Th
aila
nd
Ne
the
rla
nd
s
Pa
kis
tan
Ma
lta
Eg
yp
t
So
uth
Ko
rea
Ita
ly
Tu
rke
y
Me
xico
Do
min
ica
n R
ep
.
Ch
ina
Jord
an
Sp
ain
Ch
ile
Ku
wa
it
Arg
en
tin
a
Po
rtu
ga
l
US
LN
G E
xp
orts b
y D
estin
atio
n (
Bc
f)
01234567
De
c/1
5M
ar/
16
Jun
/16
Se
p/1
6D
ec/
16
Ma
r/1
7Ju
n/1
7S
ep
/17
De
c/1
7
Tu
rke
yB
razi
lE
gyp
tIn
dia
Arg
en
tin
a
US
LN
G R
e-E
xp
orts
By D
estin
atio
n (B
cf)
Relevant • Independent • Objective
Page 15
SOU
RC
E: C
ERI,
CA
OD
C, B
aker
Hu
ghes
. SO
UR
CE:
CER
I, C
AO
DC
.
SOU
RC
E: C
ERI,
CA
OD
C.
SOU
RC
E: C
ERI,
CA
OD
C.
0
50
0
1,0
00
1,5
00
2,0
00
2,5
00
3,0
00 Ja
n/0
6Ja
n/0
8Ja
n/1
0Ja
n/1
2Ja
n/1
4Ja
n/1
6Ja
n/1
8
US
WC
SB
No
rth
Am
eric
an
Ac
tiv
e R
igs
0
10
0
20
0
30
0
40
0
50
0
60
0
70
0
80
0
90
0
1,0
00
1,1
00 Ja
n/0
6Ja
n/0
8Ja
n/1
0Ja
n/1
2Ja
n/1
4Ja
n/1
6Ja
n/1
8
Act
ive
Rig
sT
ota
l Rig
Dri
llin
g F
lee
t
Ca
na
dia
n R
ig F
lee
t U
tiliz
atio
nW
ee
kly
Ave
ra
ge
Activ
e R
igs
0
10
0
20
0
30
0
40
0
50
0
60
0
70
0 Jan
/09
Jan
/10
Jan
/11
Jan
/12
Jan
/13
Jan
/14
Jan
/15
Jan
/16
Jan
/17
Jan
/18
SKA
BB
C
WC
SB
Ac
tiv
e R
igs b
y P
ro
vin
ce
We
ek
ly A
ve
ra
ge
-
10
0
20
0
30
0
40
0
50
0
60
0
70
0
80
0
15
91
31
72
12
52
93
33
74
14
54
9
5-Y
ea
r A
vg.
20
17
20
18
We
ste
rn
Ca
na
da
Ac
tiv
e R
igs
We
ek
ly A
ve
ra
ge
We
ek
Nu
mb
er
CERI Natural Gas Report
Page 16
SOU
RC
E: C
ERI,
Bak
er H
ugh
es.
SO
UR
CE:
CER
I, B
aker
Hu
ghe
s.
SOU
RC
E: C
ERI,
Bak
er H
ugh
es.
0%
10
%
20
%
30
%
40
%
50
%
60
%
70
%
80
%
90
%
10
0%
0
20
0
40
0
60
0
80
0
1,0
00
1,2
00
1,4
00
1,6
00
1,8
00
2,0
00
2,2
00
2,4
00 Ja
n/0
6Ja
n/0
8Ja
n/1
0Ja
n/1
2Ja
n/1
4Ja
n/1
6
Oil-
dir
ect
ed
Ga
s-d
ire
cte
dG
as-
dir
ect
ed
%
US
To
ta
l O
il-
an
d G
as-d
ire
cte
d A
ctiv
e R
igs
0
50
0
1,0
00
1,5
00
2,0
00
2,5
00 Ja
n/0
7Ja
n/0
9Ja
n/1
1Ja
n/1
3Ja
n/1
5Ja
n/1
7
To
tal O
il-d
ire
cte
dG
oM
Ga
s-d
ire
cte
dO
nsh
ore
Ga
s-d
ire
cte
d
US
To
ta
l A
ctiv
e R
igs
0
10
20
30
40
50
60
70
80
90
10
0 Jan
/07
Jan
/09
Jan
/11
Jan
/13
Jan
/15
Jan
/17
Oil-
dir
ect
ed
Ga
s-d
ire
cte
d
US
Gu
lf o
f M
ex
ico
Ac
tiv
e R
igs
Relevant • Independent • Objective
Page 17
SOU
RC
E: C
ERI,
Pla
tts
Gas
Dai
ly, S
tati
stics
Can
ada
CA
NSI
M T
able
12
9-0
00
5
SOU
RC
E: C
ERI,
Sta
tisti
cs C
anad
a C
AN
SIM
Tab
le 1
29
-00
05
.
SOU
RC
E: C
ERI,
EIA
. SO
UR
CE:
CER
I, E
IA.
•Im
po
rtan
t N
ote
: So
urc
e o
f C
anad
ian
sto
rage
dat
a is
in
tra
nsi
tio
n,
fro
m P
latt
's G
as D
aily
to
Sta
tisti
cs
Can
ada
CA
NSI
M T
able
12
9-0
00
5 -
Can
adia
n m
on
thly
nat
ura
l gas
sto
rage
, C
anad
a an
d p
rovi
nce
s. 2
01
6
dat
a an
d o
nw
ard
s is
no
w c
olle
cted
fro
m t
he
latt
er w
hile
dat
a p
rio
r to
20
16
is f
rom
th
e fo
rmer
.
0
20
0
40
0
60
0
80
0
1,0
00
1,2
00
JF
MA
MJ
JA
SO
ND
Ca
na
dia
n W
ork
ing
Ga
s S
tora
ge
(Bcf
, M
on
th-e
nd
)
20
16
20
17
5-Y
ea
r A
ve
rage
Ca
na
dia
n W
ork
ing
Ga
s S
to
ra
ge
(B
cf, M
on
th
-en
d)
0
10
0
20
0
30
0
40
0
50
0
60
0
70
0
80
0
90
0
No
v-1
6Ja
n-1
7M
ar-
17
Ma
y-1
7Ju
l-1
7S
ep
-17
No
v-1
7
We
stE
ast
Ca
na
dia
n S
to
ra
ge
by R
eg
ion
(B
cf,
Mo
nth
-en
d)
0
50
0
1,0
00
1,5
00
2,0
00
2,5
00
3,0
00
3,5
00
4,0
00
4,5
00
5,0
00
JF
MA
MJ
JA
SO
ND
20
18
20
17
5-Y
ea
r A
vera
ge
US
Lo
we
r-4
8 W
ork
ing
Ga
s S
to
ra
ge
(B
cf,
Mo
nth
-en
d)
0
50
0
1,0
00
1,5
00
2,0
00
2,5
00
3,0
00
3,5
00
4,0
00
4,5
00
Fe
b-1
7A
pr-
17
Jun
-17
Au
g-1
7O
ct-1
7D
ec-
17
Fe
b-1
8
Ea
stM
idw
est
Mo
un
tain
Pa
cifi
cSo
uth
Ce
ntr
al
US
Sto
ra
ge
by R
eg
ion
(B
cf,
Mo
nth
-en
d)
CERI Natural Gas Report
Page 18
SOU
RC
E: C
ERI,
Pla
tts
Gas
Dai
ly, S
tati
stics
Can
ada
CA
NSI
M T
able
12
9-0
00
5.
SOU
RC
E: C
ERI,
Pla
tt’s
Gas
Dai
ly, S
tati
stics
Can
ada
CA
NSI
M T
able
12
9-0
00
5.
SOU
RC
E: C
ERI,
Pla
tt’s
Gas
Dai
ly, S
tati
stics
Can
ada
CA
NSI
M T
able
12
9-0
00
5.
-80
-60
-40
-200
20
40
60
JF
MA
MJ
JA
SO
ND
5-Y
ea
r A
ve
rage
20
16
20
17
We
ste
rn
Ca
na
dia
n S
tro
ag
e I
nje
ctio
ns/W
ith
dra
wa
ls
(B
cf,M
on
th-e
nd)
-10
0
-80
-60
-40
-200
20
40
60
JF
MA
MJ
JA
SO
ND
5-Y
ea
r A
ve
rage
20
16
20
17
Ea
ste
rn
Ca
na
dia
n S
to
ra
ge
In
jec
tio
ns/W
ith
dra
wa
ls
(B
cf,
Mo
nth
-en
d)
-15
0
-10
0
-500
50
10
0
JF
MA
MJ
JA
SO
ND
5-Y
ea
r A
ve
rage
20
16
20
17
Ca
na
dia
n S
to
ra
ge
In
jec
tio
ns/W
ith
dra
wa
ls
(B
cf,
Mo
th
-end)
Relevant • Independent • Objective
Page 19
SOU
RC
E: C
ERI,
EIA
. SO
UR
CE:
CER
I, E
IA.
SOU
RC
E: C
ERI,
EIA
. SO
UR
CE:
CER
I, E
IA.
-25
0
-20
0
-15
0
-10
0
-500
50
10
0
15
0
20
0
JF
MA
MJ
JA
SO
ND
5-Y
ea
r A
ve
rage
20
16
20
17
US
Ea
st R
eg
ion
Sto
ra
ge
In
jec
tio
ns/W
ith
dra
wa
ls
(B
cf, M
on
th-e
nd
)
-30
0
-25
0
-20
0
-15
0
-10
0
-500
50
10
0
15
0
20
0
JF
MA
MJ
JA
SO
ND
5-Y
ea
r A
ve
rage
20
16
20
17
US
Mid
we
st R
eg
ion S
to
ra
ge
In
jec
tio
ns/W
ith
dra
wa
ls
(B
cf, M
onth
-en
d)
-60
-50
-40
-30
-20
-100
10
20
30
JF
MA
MJ
JA
SO
ND
5-Y
ea
r A
ve
rage
20
16
20
17
US
Mo
un
ta
in R
eg
ion
Sto
ra
ge
In
jec
tio
ns/W
ith
dra
wa
ls
(B
cf,
Mo
nth
-en
d)
-80
-60
-40
-200
20
40
60
JF
MA
MJ
JA
SO
ND
5-Y
ea
r A
ve
rage
20
16
20
17
US
Pa
cif
ic R
eg
ion
Sto
ra
ge
In
jec
tio
ns/W
ith
dra
wa
ls
(B
cf, M
on
th-e
nd)
CERI Natural Gas Report
Page 20
SOU
RC
E: C
ERI,
EIA
. SO
UR
CE:
CER
I, E
IA.
-30
0
-20
0
-10
00
10
0
20
0
30
0
JF
MA
MJ
JA
SO
ND
5-Y
ea
r A
ve
rage
20
16
20
17
US
South C
entral R
egio
n S
torage
Inje
ctio
ns/W
ithdraw
als
(B
cf, M
on
th
-end)
-1,0
00
-80
0
-60
0
-40
0
-20
00
20
0
40
0
60
0
JF
MA
MJ
JA
SO
ND
5-Y
ea
r A
ve
rage
20
16
20
17
US
Sto
ra
ge
In
jec
tio
ns/W
ith
dra
wa
ls
(B
cf, M
on
th-e
nd)