09/22/2022 | Press release | Archived content
In the first six months of 2022, U.S. liquefied natural gas (LNG) imports reached their lowest level in at least 15 years, averaging 77 million cubic feet per day (MMcf/d), compared with the five-year (2017-2021) average for the same period of 174 MMcf/d. LNG imports are usually at their highest level in the winter months of October through March. This past winter, LNG imports averaged 93 MMcf/d, which is significantly lower than in the winter of 2006-2007, when LNG imports averaged 1.8 billion cubic feet per day (Bcf/d).
As a share of U.S. total natural gas imports, LNG imports accounted for less than 1% in 2021, down from almost 17% in 2007. LNG imports peaked in April 2007 at 3.3 Bcf/d, and they accounted for almost 26% of total natural gas imports. Over the past five years, LNG imports were at their highest level in January 2018 averaging 0.5 Bcf/d, or almost 6% of total natural gas imports that month.
Before 2010, the United States was expanding its LNG import infrastructure. Eight LNG import terminals were built between 2005 and 2011, increasing the number of U.S. terminals to 12. Domestic dry natural gas production began to grow rapidly around the same time and eventually many of those LNG import terminals were reconfigured into LNG export terminals.
U.S. dry natural gas production grew by nearly 80% from 2007 to 2021, displacing LNG imports, which declined rapidly during this period. Natural gas production has increased primarily in three production regions-Appalachia, Permian, and Haynesville. Production from the Appalachian Basin, which includes the Marcellus and Utica shale formations in the Northeast, accounted for 31% of total U.S. natural gas production in 2021.
With the growth in natural gas production, several pipeline projects were completed, improving the delivery of natural gas supplies from producing regions to consumption centers across most of the country. However, even after the completion of some projects, such as the Algonquin Incremental Market (AIM) project, supplies by pipeline into the New England market can be constrained during periods of peak demand. As a result, New England continues to rely on LNG imports, particularly during the winter when demand for natural gas is high. On peak demand days, imported LNG can contribute up to 35% of New England's natural gas supply.
LNG imports can be a key marginal source of supply during times of high demand and help moderate natural gas prices. Almost all LNG imported into the United States today is delivered into the New England market at the import terminals in the Boston, Massachusetts, area-Constellation Energy's Everett LNG Facility in Boston Harbor and Excelerate Energy's Northeast Gateway in Massachusetts Bay. From November 2021 through March 2022, nine vessels carrying LNG from Trinidad and Tobago delivered 16.8 billion cubic feet of LNG to the two terminals.
In Southern California, the price at SoCal Citygate decreased $2.18 from $9.52/MMBtu last Wednesday to $7.34/MMBtu yesterday. Temperatures have continued to decline along the West Coast and across the Desert Southwest, following a heat wave that affected much of the region in early September. In the Riverside Area, inland from Los Angeles, temperatures averaged a little more than 73°F this week, leading to 59 cooling degree days (CDD), which is 51 fewer CDDs than last week and 132 fewer than two weeks ago. In the Phoenix Area, temperatures averaged 88°F, almost 1°F below normal. Natural gas consumption in the electric power sector in California declined 44%, or 1.1 billion cubic feet per day (Bcf/d), this report week, and in the Desert Southwest, it declined 15%, or 0.3 Bcf/d, according to data from PointLogic.
Further north, the price at PG&E Citygate in Northern California declined $1.54, from $9.83/MMBtu last Wednesday to $8.29/MMBtu yesterday. The price at Sumas on the Canada-Washington border fell $1.21, from $8.07/MMBtu last Wednesday to $6.86/MMBtu yesterday. The price at Malin, Oregon, the northern delivery point into the PG&E service territory, fell $1.11 from $8.20/MMBtu last Wednesday to $7.09/MMBtu yesterday. In the Sacramento Area, temperatures averaged 68°F, which is 4°F below normal, leading to 24 CDDs this report week, compared with 99 CDDs last report week. In the Seattle City Area in the state of Washington, temperatures averaged 63°F, leading to 0 CDDs and 11 heating degree days (HDD), compared with 19 CDDs and 3 HDDs last report week. Natural gas consumption in all sectors declined by 6%, or 0.1 Bcf/d, in the Pacific Northwest this report week, according to data from PointLogic.
Daily spot prices by region are available on the EIA website.
See also:
Spot Prices ($/MMBtu) |
Thu,
15-Sep |
Fri,
16-Sep |
Mon,
19-Sep |
Tue,
20-Sep |
Wed,
21-Sep |
Henry Hub |
8.51
|
8.07
|
7.85
|
7.95
|
7.99
|
New York |
7.37
|
6.84
|
7.05
|
6.92
|
5.95
|
Chicago |
7.67
|
6.94
|
6.99
|
7.00
|
6.82
|
Cal. Comp. Avg.* |
8.33
|
7.54
|
7.73
|
7.53
|
7.51
|
Futures ($/MMBtu) | |||||
October contract |
8.324
|
7.764
|
7.752
|
7.717
|
7.779
|
November contract |
8.372
|
7.811
|
7.804
|
7.772
|
7.827
|
Data source: Natural Gas Intelligence and CME Group as compiled by Bloomberg, L.P. *Avg. of NGI's reported prices for: Malin, PG&E Citygate, and Southern California Border Avg. |
U.S. natural gas supply - Gas Week: (9/15/22 - 9/21/22) | |||
Average daily values (billion cubic feet)
|
|||
this week
|
last week
|
last year
|
|
Marketed production |
110.5
|
111.0
|
106.8
|
Dry production |
98.8
|
99.4
|
94.1
|
Net Canada imports |
6.0
|
5.3
|
4.8
|
LNG pipeline deliveries |
0.1
|
0.1
|
0.1
|
Total supply |
104.9
|
104.8
|
98.9
|
Data source: PointLogic |
U.S. natural gas consumption - Gas Week: (9/15/22 - 9/21/22) | |||
Average daily values (billion cubic feet)
|
|||
this week
|
last week
|
last year
|
|
U.S. consumption |
66.7
|
67.4
|
64.3
|
Power |
36.4
|
36.8
|
34.9
|
Industrial |
21.4
|
21.8
|
20.7
|
Residential/commercial |
9.0
|
8.9
|
8.7
|
Mexico exports |
5.3
|
5.6
|
5.9
|
Pipeline fuel use/losses |
6.6
|
6.7
|
6.3
|
LNG pipeline receipts |
11.6
|
11.2
|
9.6
|
Total demand |
90.2
|
90.8
|
86.1
|
Data source: PointLogic |
Rigs | |||
Tue, September 13, 2022
|
Change from
|
||
last week
|
last year
|
||
Oil rigs |
599
|
1.4%
|
45.7%
|
Natural gas rigs |
162
|
-2.4%
|
62.0%
|
Note: Excludes any miscellaneous rigs |
Rig numbers by type | |||
Tue, September 13, 2022
|
Change from
|
||
last week
|
last year
|
||
Vertical |
23
|
-4.2%
|
-20.7%
|
Horizontal |
695
|
0.4%
|
49.1%
|
Directional |
45
|
4.7%
|
164.7%
|
Data source: Baker Hughes Company |
Working gas in underground storage | |||
Stocks
billion cubic feet (Bcf) |
|||
Region |
2022-09-16
|
2022-09-09
|
change
|
East |
690
|
661
|
29
|
Midwest |
844
|
809
|
35
|
Mountain |
168
|
163
|
5
|
Pacific |
237
|
235
|
2
|
South Central |
935
|
904
|
31
|
Total |
2,874
|
2,771
|
103
|
Data source: U.S. Energy Information Administration Form EIA-912, Weekly Underground Natural Gas Storage Report |
Working gas in underground storage | ||||
Historical comparisons
|
||||
Year ago
(9/16/21) |
5-year average
(2017-2021) |
|||
Region |
Stocks (Bcf)
|
% change
|
Stocks (Bcf)
|
% change
|
East |
748
|
-7.8
|
784
|
-12.0
|
Midwest |
900
|
-6.2
|
907
|
-6.9
|
Mountain |
196
|
-14.3
|
199
|
-15.6
|
Pacific |
240
|
-1.3
|
278
|
-14.7
|
South Central |
986
|
-5.2
|
1,038
|
-9.9
|
Total |
3,071
|
-6.4
|
3,206
|
-10.4
|
Data source: U.S. Energy Information Administration Form EIA-912, Weekly Underground Natural Gas Storage Report |
Temperature - heating & cooling degree days (week ending Sep 15) | ||||||
HDDs
|
CDDs
|
|||||
Region |
Current total
|
Deviation from normal
|
Deviation from last year
|
Current total
|
Deviation from normal
|
Deviation from last year
|
New England |
7
|
-16
|
0
|
18
|
12
|
-1
|
Middle Atlantic |
6
|
-10
|
2
|
24
|
8
|
-7
|
E N Central |
16
|
-4
|
7
|
14
|
-2
|
-19
|
W N Central |
20
|
-7
|
8
|
22
|
-1
|
-19
|
South Atlantic |
1
|
-1
|
1
|
67
|
1
|
-6
|
E S Central |
4
|
1
|
2
|
47
|
-7
|
-9
|
W S Central |
1
|
-1
|
1
|
77
|
-11
|
-8
|
Mountain |
22
|
-8
|
19
|
37
|
-6
|
-29
|
Pacific |
2
|
-7
|
-2
|
43
|
10
|
-11
|
United States |
9
|
-6
|
4
|
41
|
1
|
-12
|
Data source: National Oceanic and Atmospheric Administration Note: HDDs=heating degree days; CDDs=cooling degree days |
Average temperature (°F)
7-day mean ending Sep 15, 2022
Data source: National Oceanic and Atmospheric Administration
Deviation between average and normal temperature (°F)
7-day mean ending Sep 15, 2022
Data source: National Oceanic and Atmospheric Administration