Percentage of New England natural gas consumption from Canaport and Everett LNG sendout less than half of levels last winter
The average percentage of daily natural gas consumption in New England that was met with combined liquefied natural gas (LNG) sendout from the Distrigas of Massachusetts import and regasification facility located in Everett, Massachusetts and the Canaport LNG facility in New Brunswick, Canada through February 20 of the current winter season is less than half of the percentage through February 20 of the previous winter season, according to calculations with estimates from BENTEK Energy, LLC (Bentek). From November 1, 2011 through February 20, 2012, average sendout from the Everett and Canaport terminals was 15.8 percent of average daily consumption in New England, versus an average of 7.4 percent of daily consumption in New England between November 1, 2012 and February 20, 2013, according to the Bentek estimates. By comparison, LNG sendout met over 25 percent of New England’s average daily natural gas demand from November 2010 to January 2012.
Part of the reason for the decline in the portion of New England consumption met from Everett and Canaport terminals is that average daily consumption in the region has increased this winter by 3.3 percent, from 3.8 billion cubic feet per day (Bcf/d) in the winter of 2011-12 to 4.0 Bcf/d in the winter of 2012-13. However, another large part of the reason for the decline in the LNG sendout as a percent of consumption is that average daily LNG sendout has fallen by more than half between the two winters, from 0.61 Bcf/d in the winter of 2011-12 to 0.29 Bcf/d in the winter of 2012-13. LNG sendout from Canaport has fallen by 41.9 percent, from 0.39 Bcf/d to 0.23 Bcf/d, while sendout from Everett has fallen by 69.7 percent, from 0.22 Bcf/d to 0.07 Bcf/d.
Natural gas prices were up at most market locations, increasing most significantly in the Northeast. Henry Hub increased from $3.28 per MMBtu last Wednesday to $3.34 yesterday, an increase of 6 cents per MMBtu, or 2 percent. Most trading points increased between 5 and 20 cents per MMBtu week-on-week, with the notable exception of the Northeast. Algonquin Citygate, serving Boston markets, is currently very elevated but fell by 7 percent relative to last week, from $17.85 per MMBtu last Wednesday to $16.55 per MMBtu yesterday. Transco Zone 6 NY, serving New York City, nearly tripled from Wednesday to Wednesday, moving from $6.10 per MMBtu to $17.21 per MMBtu, surpassing Algonquin Citygate on February 20. The Midwest and Northeast faced cold temperatures for the week, and temperatures in the Southeast were low relative to historical norms.