First Look: Kinder Morgan's NGPL extends maintenance through the end of August
May 16, 2024
Oil is trading higher, near $79.40, extending gains from yesterday
Yesterday, prices jumped following a larger draw on crude inventories than expected and a softer-than-expected inflation report
Nigerian mega refinery buying large volumes of US oil (BBG)
Nigeria’s new Dangote refinery is seeking to buy millions of barrels of US crude over the next year as it ramps up to full capacity
The refinery has issued a tender to purchase 2 MMBbls per month of WTI Midland for the next 12 months
Supply of Nigerian crude is insufficient or unavailable, forcing the refinery to seek cargos from elsewhere
The max capacity of the refinery is 650 MBbl/d
Natural gas prices trade higher amid anticipated strong summer demand and continued low production
June ’24 Henry Hub is up 2.4c this morning to trade around $2.44/MMBtu
The Summer ’24 strip is up 6.2c to $2.663 and Winter ‘24/’25 strip is up 4.7c to $3.495
Today’s Euro Ensemble indicates a colder shift in the Southeast but warmer trends in the Northeast, Midwest, and West, maintaining an overall gradually warmer forecast for the Lower 48 (Criterion)
Kinder Morgan’s NGPL extends maintenance through the end of August (Criterion)
NGPL is performing inspections and potential remediation on the Gulf Coast #1 mainline from CS 302 in Montgomery to Wharton County, Texas, with work continuing through August 2024
Segment 22 (South of CS 302) shows reduced flows at 0.1 Bcf/d due to ongoing hydrotesting east of the station
An outage from May 21-27 in Segment 26 (South of CS 303) will cut capacity to 69% of the maximum daily quantity, affecting southbound gas movement toward the Gulf Coast
Despite increased flows north of CS 302 reaching up to 1.0 Bcf/d, the May capacity restrictions are expected not to impact current operations significantly due to existing limitations from downstream outages
Extended maintenance impacts gas flows on Permian Highway Pipeline (Bloomberg)
Waha Hub in Texas saw gas prices drop to -$4.07/MMbtu on May 6, marking the lowest since April 2019, driven by high Permian production and limited pipeline access due to maintenance
On May 13, Permian production climbed to a record high for 2024, hitting 17.47 Bcf/d, while export capacities at the Gulf Coast were pushed to their limits
Maintenance on the Permian Highway Pipeline, originally expected to end on May 12, has been extended to May 17, limiting gas flows to 2.45 Bcf/d or about 93% of its full capacity, according to Kinder Morgan's electronic bulletin board
Despite the early May price lows, Waha Hub gas prices have since recovered closer to $0/MMBtu, reflecting the market's adjustment to the ongoing pipeline constraints
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