Loading…
Pipeline constraints into Louisiana and East Texas are expected to widen basis discounts at US gas hubs next summer. Forward prices at Carthage and Columbia Gulf are 10 and 24 cents per MMBtu below Henry Hub, and Chicago and Dominion South are discounted further.
Widening regional basis spreads show that Gulf Coast LNG-linked demand is absorbing gas capacity, which can raise feed-processing energy costs in the Gulf while lowering prices at Midwest and Northeast hubs. Pipeline congestion may also affect regional energy costs for crushing and ethanol plants.
spglobal.comJ. Robinson, Luke Jackson, Tyler JubertJan 10, 2020Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
