So the price of oil is flirting with new records, but what about the other white meat, natural gas? Turns out it’s doing its own thing.
Gas for November delivery fell 12 cents, or 1.6 percent, to $7.367 per million btus on the NYMEX Tuesday, likely due to news a survey of analysts by Bloomberg found stockpiles likely increased by 54 billion cubic feet last week. By the end of October, storage could exceed last year’s record of 3.461 trillion cubic feet.
Independence Hub: A big gas line out of the GOM.
“The fundamentals are really bearish. If you take a look at injections on Thursday” it will be a big a number, said Chris Jarvis, president of Caprock Risk Management in Hampton Falls, New Hampshire. Gas fundamentals and technicals are working opposite the advancing crude market of the last several days. It “is a sign of weakness” that crude is not pushing gas higher, Jarvis said.
And maybe this is helping: Enterprise Products Partners is opening the spigot wider every day on a couple of projects.
On Monday the Houston pipeline giant said the Independence Hub platform in the Gulf of Mexico reached 600 million cubic feet per day of gas as 10 of its 15 wells got up to speed. The semi-submersible, which sits 123 miles southeast of Biloxi and started up in July, is expected to hit a year-end of 1 billion cubic feet per day.
Enterprise also said it began processing natural gas at the recently completed first phase of the Meeker gas processing facility in Colorado. The plant, located in the Piceance Basin, has the capacity to process 750 mmcf per day of natural gas and can extract up to 35,000 barrels per day of natural gas liquids.