Higher Gas Prices but Generally Cautiously Optimistic Overall

摘要

The Winter Assessment is staffs opportunity to look ahead to the coming winter and share our thoughts and expectations about market preparedness, including an assessment of risks. Natural gas and power markets are well-supplied going into the winter, with plentiful storage, a better-connected pipeline system, and the ability to draw greater imports from Canada through pipelines and higher imports of liquefied natural gas (LNG) into New England. However, US natural gas production is down slightly from last year, and prices are likely to be moderately higher than last winter. Most forecasters expect winter temperatures across the northern United States to be average, while most sectors of the gas market should see strong demand relative to last year's record warm winter. There are challenges though, specifically in regional markets like New England and California, where operational issues could create some regionalized gas and power risk.