CALGARY, Alberta (Oct. 8, 2024) — Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has released a report addressing natural gas price volatility related to supply, demand and midstream timing. The analysis also includes pipe stacks and flow capacities for select North American basins, and historical basis and commentary.
“Amplified gas price instability is a sure bet in the next few years as the market tries to time supply growth and LNG export capacity with the required midstream infrastructure needed to move the molecules,” said Jason Feit, lead author and an adviser at EIR.
“EIR expects Waha gas prices to further tighten to Henry Hub as Matterhorn Express Pipeline ramps up to full capacity. However, Katy and East Texas may see reduced pricing strength as additional gas makes its way there in advance of forthcoming LNG demand,” said Feit.
“Natural gas in Alberta recently traded at a few pennies because of a supply glut, a situation that could easily reoccur over the next couple of years if producers don’t allow the market to balance before they boost production on the expectation that a new LNG plant scheduled to start next year will increase demand by close to 2 Bcf/d,” said Feit.
Key takeaways from the report:
- EIR expects gas price volatility to heighten across North America as production tries to time LNG demand and midstream infrastructure development.
- The Matterhorn Express Pipeline buys less than two years of room for gas production growth in the Permian. A high probability exists that timing mismatches will briefly drive Waha negative again in 2026.
- Producer discipline may not keep Canadian production from exceeding the incremental demand that will be created by LNG Canada. EIR expects continued price pressure, both in the near term and beyond.
EIR’s analysis pulls from a variety of Enverus products including Enverus Intelligence® Research.
Additional Resources:
EIR is inviting members of the media to attend a live webinar Oct. 16, 2024, at noon CDT, to learn more about gas-fired power generation. Learn more and register here.
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About Enverus Intelligence® Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.
