Low Midcontinent gas prices fuel outbound flows in growing risk to winter storage

摘要

Weak basis prices in the US Midcontinent are keeping outbound gas transmissions elevated recently. As shippers push more supply to higher-priced spot markets, regional storage has fallen to its lowest mid-September level since at least 2005, raising alarm in the market over winter-season supply reliability. At the NGPL Midcontinent hub, the region’s benchmark location, cash basis has averaged a 24 cent discount to Henry Hub since the start of August. In the second quarter, the Midcontinent location had averaged just an 18 cent discount to Henry Hub, S&P Global Platts data shows.