With low storage levels and an early blast of winter weather, the natural gas industry has been on a tear the past few weeks.
- Daily Mid-con prices on November 1st posted around $2.70 per MMBtu
- Today, November 20th, they are approaching $4.50 per MMBtu; an increase of more than 60%
- Demand continues to grow as well
- In October KMGA purchased 60% more gas supply than in October 2017
- To date, November 2018 gas supply purchases are 74% more than a year ago
Production continues to grow, up about 8.3 Bcf in November from year ago levels. Much of that added production has been absorbed by the high demand due to the cold snap that continues across much of the country.
NOAA has modified their 2018-2019 winter forecast to be 4-5 degrees below the average temperature. The NYMEX futures contract prices for Dec-Feb have reacted to this updated forecast and are currently averaging $4.54 per MMBtu. On November 1st, the winter strip average was $3.23 per MMBtu.
We wanted to provide this information to you as you should expect to see a significant increase in both usage volume and dollars on your KMGA invoice for November gas supply!