Incoming heat wave looks to boost gas-fired power generation, prices across US West

摘要

Natural gas prices in the US Pacific region are showing resilience despite higher-than-normal storage inventories due to higher power demand coupled with lower nuclear and hydroelectric output with cooling demand expected to spike in the coming days. For example, so far in this year’s injection season, starting April 1, gas-fired power generation in the US Southwest has averaged 2.67 Bcf/d, according to S&P Global Platts Analytics data. This measures 220 MMcf/d more than in 2020 over the same period. Sweltering temperatures in the Western US during the final week of May eased up during the first week of June, but that is not expected to last much longer, according to the most recent forecast. The ongoing heat wave is expected to set record highs across the west over the week ending June 11, reportedly pushing temperatures in the US Pacific Northwest into the upper 90’s and even 100’s.