The NYMEX June gas futures contract inched up 1.3 cents to settle at $4.194/MMBtu. Cash prices generally drifted lower Thursday despite an impending shut-in of at least one gas pipeline segment due to flooding along the Mississippi River. According to the the Energy Information Administration, a below average 70-Bcf injection lifted the nation's gas storage inventories to 1.827 Tcf as of May 6. The injection was within consensus expectations ranging from 67 to 71 Bcf, but it was well below the 93-Bcf injection a year earlier and the five year average of 90 Bcf. EIA reported a 41-Bcf injection in the East, leaving inventories at 748 Bcf, compared with 950 Bcf a year ago.
Some analysts think this could be the last report for a while that includes a below-average injection. They also have a neutral-to-bearish outlook on injections going forward and don’t anticipate a sustained push higher for gas prices. Summer is quickly approaching and heating demand will fall drastically, pushing injections into the triple digits before air conditioning is turned to high.
In an effort to give our clients a broader choice in Pennsylvania, Washington Gas Energy Services is now offering natural gas service to large commercial businesses in the following utility territories: PECO Gas, UGI Utilities, UGI Penn Natural, and Columbia Gas.
We are currently serving Pennsylvania electric customers in MetEd and Penelec, as well as our continued service in PPL and PECO. We will be adding Potomac Edison (formerly Allegheny Power) in the near future.
For more detailed information please see our Spotlight on Expansion feature in this newsletter.