gas daily - s&p globalnymex sept. gas increases as storage concerns grow 10 regional gas markets...

Monday, August 6, 2018

GAS DAILY

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News HeadliNes

China adds Us lNG to list for potential 25% tariff�� Market consequences seen if implemented�� American developers urge negotiated resolution

(continued on page 2)

soCal city-gate cash skyrockets into $20s�� Limiting capacity at PG&E Wheeler Ridge �� Demand projections show upside


Nueva era begins flowing across the border�� Delivering gas to combined-cycle plants�� May deliver to LDC’s in Monterrey


Columbia maintenance to cut w.Va. production�� Sherwood plant reduced to 165 MMcf/d�� Prices unfazed by reductions


iNside tHis issUe

Southwestern turns to Appalachian wet window to bolster returns 5Enbridge says Nexus and Line 3 Replacement projects progressing well 6Pembina anticipates FERC decision on Jordan Cove in 2019 7Noble to shift capital from Permian to Colorado’s DJ Basin 7Homeland Security forms group to consolidate cyber defense 7NYMEX Sept. gas increases as storage concerns grow 10Regional Gas Markets 11Gas Daily Supplement Links 15

Final Daily Price Survey - PlattS locationS ($/MMBtu)NATIONAL AVERAGE PRICE: 2.970Trade date: 03-AugFlow date(s): 04-Aug—06

Midpoint +/- absolute Common Vol. deals

Northeast

Algonquin, city-gates IGBEE21 3.080 +0.120 2.870-3.300 2.975-3.190 228 33

Algonquin, receipts IGBDK21 — — ——- ——- — —

Dracut, Mass. IGBDW21 — — ——- ——- — —

Iroquois, receipts IGBCR21 3.120 +0.160 3.090-3.200 3.095-3.150 240 66

Iroquois, zone 2 IGBEJ21 3.150 +0.170 3.100-3.200 3.125-3.175 95 29

Niagara IGBCS21 2.775 +0.005 2.750-2.800 2.765-2.790 14 4

Tennessee, z6 (300 leg) del. IGBJC21 — — ——- ——- — —

Tennessee, zone 6 del. IGBEI21 2.960 +0.045 2.880-3.300 2.880-3.065 236 49

Tx. Eastern, M-3 IGBEK21 2.660 -0.035 2.640-2.740 2.640-2.685 207 52

Transco, zone 5 del. IGBEN21 2.985 +0.095 2.950-3.000 2.975-3.000 451 82

Transco, zone 5 del. North IGCGL21 2.995 +0.105 2.970-3.000 2.990-3.000 155 24

Transco, zone 5 del. South IGCHL21 2.980 +0.085 2.950-3.000 2.970-2.995 296 58

Transco, zone 6 N.Y. IGBEM21 2.970 +0.090 2.900-3.020 2.940-3.000 163 24

Transco, zone 6 non-N.Y. IGBEL21 2.975 +0.125 2.930-3.010 2.955-2.995 279 69

Transco, zone 6 non-N.Y. North IGBJS21 2.975 +0.125 2.930-3.010 2.955-2.995 279 69

Transco, zone 6-non-N.Y. South IGBJT21 — — ——- ——- — —

Northeast regional average IGCAA00 2.965

appalachia

Columbia Gas, App. IGBDE21 2.685 +0.045 2.660-2.715 2.670-2.700 753 133

Columbia Gas, App. non-IPP IGBJU21 — — ——- ——- — —

Dominion, North Point IGBDB21 2.555 +0.005 2.500-2.570 2.540-2.570 284 70

Dominion, South Point IGBDC21 2.565 +0.020 2.520-2.605 2.545-2.585 671 154

Lebanon Hub IGBFJ21 2.770 +0.065 2.760-2.775 2.765-2.775 58 8

Leidy Hub IGBDD21 — — ——- ——- — —

Millennium, East receipts IGBIW21 2.290 -0.060 2.250-2.360 2.265-2.320 55 22

REX, Clarington Ohio IGBGO21 — — ——- ——- — —

Tennessee, zone 4-200 leg IGBJN21 2.710 +0.065 2.690-2.740 2.700-2.725 263 55

Tennessee, zone 4-300 leg IGBFL21 2.330 -0.060 2.270-2.400 2.300-2.365 135 36

Tennessee, zone 4-313 pool IGCFL21 2.660 +0.060 2.650-2.670 2.655-2.665 67 22

Tennessee, zone 4-Ohio IGBHO21 — — ——- ——- — —

Texas Eastern, M-2 receipts IGBJE21 2.560 -0.025 2.515-2.650 2.525-2.595 782 181

Transco, Leidy Line receipts IGBIS21 2.505 +0.010 2.445-2.600 2.465-2.545 438 105

Appalachia regional average IGDAA00 2.565

Midcontinent

ANR, Okla. IGBBY21 2.505 -0.020 2.420-2.575 2.465-2.545 279 52

Enable Gas, East IGBCA21 2.645 -0.030 2.640-2.660 2.640-2.650 35 7

NGPL, Amarillo receipt IGBDR21 2.750 +0.055 2.730-2.770 2.740-2.760 119 24

NGPL, Midcontinent IGBBZ21 2.440 +0.055 2.400-2.460 2.425-2.455 184 28

Oneok, Okla. IGBCD21 1.865 +0.035 1.800-1.900 1.840-1.890 323 48

Panhandle, Tx.-Okla. IGBCE21 2.420 -0.025 2.390-2.480 2.400-2.445 412 78

Southern Star IGBCF21 2.430 -0.040 2.400-2.500 2.405-2.455 143 23

Tx. Eastern, M-1 24-in. IGBET21 2.795 +0.050 2.775-2.810 2.785-2.805 13 5

Midcontinent regional average IGEAA00 2.480

Upper Midwest

Alliance, into interstates IGBDP21 2.835 +0.090 2.815-2.880 2.820-2.850 429 79

ANR, ML 7 IGBDQ21 — — ——- ——- — —

Chicago city-gates IGBDX21 2.835 +0.095 2.785-2.870 2.815-2.855 484 78

Chicago-Nicor IGBEX21 2.835 +0.085 2.785-2.870 2.815-2.855 303 51

Chicago-NIPSCO IGBFX21 2.825 +0.085 2.820-2.850 2.820-2.835 49 10

Chicago-Peoples IGBGX21 2.830 +0.090 2.810-2.870 2.815-2.845 132 17

Consumers city-gate IGBDY21 2.890 +0.095 2.865-2.950 2.870-2.910 193 36

Dawn, Ontario IGBCX21 2.990 +0.105 2.955-3.030 2.970-3.010 346 55

Emerson, Viking GL IGBCW21 2.795 +0.115 2.760-2.830 2.780-2.815 106 28

Mich Con city-gate IGBDZ21 2.885 +0.085 2.870-2.900 2.880-2.895 427 64

Northern Bdr., Ventura TP IGBGH21 2.785 +0.095 2.770-2.800 2.780-2.795 66 12

Northern, demarc IGBDV21 2.760 +0.065 2.700-2.900 2.710-2.810 191 31

Northern, Ventura IGBDU21 2.775 +0.080 2.770-2.820 2.770-2.790 607 64

REX, Zone 3 delivered IGBRO21 2.775 +0.065 2.755-2.810 2.760-2.790 774 128

Upper Midwest regional average IGFAA00 2.835

($/MMBtu)

SPOT PRICE AND BASIS CHANGES

-1.0

-0.5

0.0

0.5

TX E

aste

rn M

-3 (N

E)

Dom

inio

n S

Pt (

App

al)

Chi

cago

(Mid

C)

Hen

ry H

ub (S

E)

Hou

ston

Shi

p (E

TX)

Wah

a (S

W)

Panh

andl

e TX

-OK

(Mid

C)

CIG

(NW

)

PG&

E C

G (S

W)

SoC

al G

as (S

W)

Sum

as (N

W)

AEC

O-C

(NW

)

Source: S&P Global Platts

Daily spot price changeDaily cash basis changeDaily spot price change from bidweek

2

Monday, august 6, 2018gas daily

© 2018 s&P global Platts, a division of s&P global inc. all rights reserved.

Final Daily price survey - platts locations ($/MMBtu)Trade date: 03-AugFlow date(s): 04-Aug—06

Midpoint +/- Absolute Common Vol. Deals


4�DAY�AHEAD TEMPERATURE FORECAST MAP

Source: S&P Global Platts, Custom Weather

China adds Us lNG to list of products for potential 25% import tariff

�■ Market consequences seen if implemented�■ american developers urge negotiated resolution

China rattled investors in the US LNG export sector when it said Friday it may impose 25% tariffs on American cargoes if President Donald Trump follows through on his threat to escalate the trade war with Beijing that he initiated.

Chinese demand figures to underpin a substantial chunk of the expected US export capacity growth over the next decade, as the country is forecast to soon overtake Japan as the world’s biggest LNG importer.

Cheniere Energy holds the only major firm long-term sales agreements announced so far between a US exporter and a Chinese

Platts Gas Daily indices are based upon trade data reported to Platts by market participants and the Intercontinental Exchange.

The indices are calculated using detailed transaction level data from these providers. Platts editors screen the data for outliers that may be further examined and potentially removed. A volume weighted average is then calculated from the remaining set of data.

These locations were assessed by Platts and deviated from the standard volume weighted average methodology in the following ways:

Texas Gas, Zone SL: Price of $2.785/MMBtu was assessed at a 2.5-cent premium to Texas Gas Zone 1 based on recent daily gas trading and verified by ICE bid/offer activity

This rationale applies to symbols found in the Market Data category GD listed at http://plts.co/uwHX30kyPG0

aSSeSSment rationale

east texas

Agua Dulce Hub IGBAV21 — — ——- ——- — —

Carthage Hub IGBAF21 2.745 +0.055 2.730-2.775 2.735-2.755 93 25

Florida Gas, zone 1 IGBAW21 2.820 +0.075 2.815-2.820 2.820-2.820 17 2

Houston Ship Channel IGBAP21 2.890 +0.050 2.860-2.930 2.875-2.910 69 14

Katy IGBAQ21 2.880 +0.040 2.850-2.920 2.865-2.900 430 46

NGPL, STX IGBAZ21 2.845 +0.015 2.840-2.850 2.845-2.850 7 6

NGPL, Texok zone IGBAL21 2.735 +0.050 2.725-2.785 2.725-2.750 510 86

Tennessee, zone 0 IGBBA21 2.755 +0.075 2.745-2.800 2.745-2.770 109 28

Tx. Eastern, ETX IGBAN21 2.750 +0.020 2.750-2.750 2.750-2.750 2 2

Tx. Eastern, STX IGBBB21 2.850 +0.035 2.820-2.910 2.830-2.875 131 36

Transco, zone 1 IGBBC21 2.790 +0.075 2.780-2.800 2.785-2.795 23 6

Transco, zone 2 IGBBU21 2.830 +0.100 2.830-2.830 2.830-2.830 8 2

East Texas regional average IGGAA00 2.810

louisiana/southeast

ANR, La. IGBBF21 2.785 +0.070 2.780-2.830 2.780-2.800 328 36

Columbia Gulf, La. IGBBG21 2.790 +0.055 2.790-2.800 2.790-2.795 18 6

Columbia Gulf, mainline IGBBH21 2.760 +0.060 2.725-2.780 2.745-2.775 455 80

Florida city-gates IGBED21 3.140 +0.030 3.120-3.190 3.125-3.160 20 2

Florida Gas, zone 2 IGBBJ21 2.790 +0.060 2.775-2.820 2.780-2.800 65 5

Florida Gas, zone 3 IGBBK21 2.895 +0.095 2.865-2.910 2.885-2.905 294 34

Henry Hub IGBBL21 2.840 +0.050 2.815-2.880 2.825-2.855 383 52

Southern Natural, La. IGBBO21 2.810 +0.065 2.800-2.845 2.800-2.820 424 62

Tennessee, zone 1 IGBHI21 2.790 +0.045 2.770-2.800 2.785-2.800 128 29

Tennessee, 500 Leg IGBBP21 2.815 +0.080 2.800-2.835 2.805-2.825 226 50

Tennessee, 800 Leg IGBBQ21 2.785 +0.065 2.760-2.800 2.775-2.795 416 66

Tx. Eastern, ELA IGBBS21 2.770 +0.040 2.760-2.825 2.760-2.785 110 18

Tx. Eastern, M-1 30-in. IGBDI21 2.740 +0.030 2.740-2.740 2.740-2.740 11 2

Tx. Eastern, WLA IGBBR21 2.800 +0.050 2.780-2.835 2.785-2.815 220 26

Tx. Gas, zone 1 IGBAO21 2.760 +0.070 2.750-2.780 2.755-2.770 965 125

Tx. Gas, zone SL IGBBT21 2.785** +0.080 2.785-2.785 2.785-2.785 0 0

Transco, zone 3 IGBBV21 2.830 +0.060 2.800-2.870 2.815-2.850 517 80

Transco, zone 4 IGBDJ21 2.850 +0.065 2.830-2.885 2.835-2.865 1352 177

Trunkline, ELA IGBBX21 2.720 -0.010 2.720-2.720 2.720-2.720 1 1

Trunkline, WLA IGBBW21 — — ——- ——- — —

Trunkline, zone 1A IGBGF21 2.770 +0.085 2.760-2.790 2.765-2.780 254 41

Louisian/Southeast regional average IGHAA00 2.810

Rockies/Northwest

Cheyenne Hub IGBCO21 2.490 +0.010 2.450-2.540 2.470-2.515 160 38

CIG, Rockies IGBCK21 2.445 -0.015 2.400-2.490 2.425-2.470 85 16

GTN, Kingsgate IGBCY21 2.500 +0.125 2.500-2.500 2.500-2.500 10 2

Kern River, Opal IGBCL21 2.595 +0.035 2.560-2.660 2.570-2.620 864 144

NW, Can. bdr. (Sumas) IGBCT21 1.520 -0.675 1.090-1.680 1.375-1.670 185 34

NW, s. of Green River IGBCQ21 2.500 +0.010 2.450-2.550 2.475-2.525 103 17

NW, Wyo. Pool IGBCP21 2.580 +0.035 2.490-2.660 2.540-2.625 549 93

PG&E, Malin IGBDO21 2.690 +0.110 2.640-2.730 2.670-2.715 150 34

Questar, Rockies IGBCN21 2.500 +0.030 2.500-2.500 2.500-2.500 5 4

Stanfield, Ore. IGBCM21 2.540 +0.090 2.500-2.650 2.505-2.580 140 32

TCPL Alberta, AECO-C* IGBCU21 0.835 -0.415 0.500-1.000 0.710-0.960 896 153

Westcoast, station 2* IGBCZ21 1.145 -0.355 1.050-1.200 1.110-1.185 86 13

White River Hub IGBGL21 2.525 +0.015 2.500-2.580 2.505-2.545 55 12

Rockies/Northwest regional average IGIAA00 2.445

southwest

El Paso, Bondad IGBCG21 2.415 -0.085 2.400-2.420 2.410-2.420 46 6

El Paso, Permian IGBAB21 2.180 -0.135 2.070-2.330 2.115-2.245 1241 179

El Paso, San Juan IGBCH21 2.435 -0.040 2.400-2.590 2.400-2.485 218 40

El Paso, South Mainline IGBFR21 5.035 -0.630 4.300-5.500 4.735-5.335 64 10

Kern River, delivered IGBES21 4.465 -1.445 4.150-5.000 4.255-4.680 211 44

PG&E city-gate IGBEB21 3.300 +0.020 3.280-3.325 3.290-3.310 527 66

PG&E, South IGBDM21 2.495 -0.205 2.400-2.600 2.445-2.545 58 10

SoCal Gas IGBDL21 4.090 -0.145 2.600-5.750 3.305-4.880 280 55

SoCal Gas, city-gate IGBGG21 23.050 +9.640 16.000-27.000 20.300-25.800 423 132

Transwestern, Permian IGBAE21 2.150 -0.255 2.100-2.250 2.115-2.190 78 20

Transwestern, San Juan IGBGK21 2.420 +0.015 2.400-2.420 2.415-2.420 83 14

Waha IGBAD21 2.120 -0.185 1.995-2.250 2.055-2.185 942 144

Southwest regional average IGJAA00 4.680

*Price in C$ per gj; C$1=US$0.7702; **Assessed Price; Volume in 000 MMBtu/day. Symbols represent gas

flow date.

3



buyer. More commercial deals with China will be needed to finance projects under development. Tariffs could make those contracts more expensive, prompting Chinese buyers to seek supplies from elsewhere. US spot cargoes also would be at risk of being priced out of the market.

“I think the US can compete, but this is a potential issue for some facilities depending on their cost structure,” Brad Leach, an energy market consultant in Connecticut who was formerly responsible for natural gas and electricity research at exchange operator CME Group, said in a telephone interview.

US exporters and developers were muted in their response to the announcement from China’s Customs Tariff Commission of the State Council, with many preferring to take a wait-and-see approach about whether the tariffs would actually happen.

“We will continue to work with Chinese buyers,” LNG Limited CEO Greg Vesey, whose 8 mtpa Magnolia LNG project is being proposed for Lake Charles, Louisiana, said in an emailed statement. “This is positive from the aspect that we considered it part of the tariff list all along and maybe now this gets everyone to the negotiating table to find a mutually beneficial solution. Chinese buyers and US exporters want this resolved.”

Vesey told S&P Global Platts in June on the sidelines of the World Gas Conference in Washington that an interested Chinese buyer was holding off completing a purchase agreement for Magnolia capacity until there is greater certainty about tariffs.

Tellurian, whose Driftwood LNG terminal also is proposed for Louisiana, questioned the logic of the Chinese tariff threat. Its shares fell 5.6% to close at $7.58 in Friday trading in New York.

“American gas doesn’t come with a ‘Made in America’ label on the molecules,” co-founder Charif Souki said in an email. “I’m not sure how a tariff on a commodity works, but we are watching in fascination. This will not affect the trade but will simply make gas more expensive to Chinese consumers.”

Cheniere crosshairsThe greatest immediate impact from Chinese tariffs on US LNG

would be on Cheniere. It has shipped dozens of cargoes from its Sabine Pass terminal in Louisiana to China on a spot basis, and it has two long-term sales agreements with state-owned China National Petroleum Corp. that supported its decision to build a third liquefaction unit at its Corpus Christi, Texas, facility. Cheniere shares fell 2% to close at $62.06.

“While we are waiting on details of the recent announcement and do not view tariffs as productive, Cheniere continues to see China as an important growth market and LNG as a ‘win-win’ between the United States and China,” the company said in a statement.

In a July 24 interview with S&P Global Platts, CEO Jack Fusco acknowledged the uncertainties created by trade tensions between the US and China. He reiterated how important the Chinese market is to Cheniere’s growth plans.

A spokeswoman for Dominion Energy, which operates the Cove Point LNG export terminal in Maryland, said in an email that “any tariffs imposed will not affect” its customer contracts. To date, none of the cargoes shipped from Cove Point under long-term agreements with Gail India and a joint venture of Sumitomo and Tokyo Gas has been delivered to China. Dominion shares gained 1.4% to close at $72.12.

trump tripJust nine months ago, President Trump visited Beijing, where he

urged a stronger trade relationship with China and touted a series of preliminary agreements that were signed between US LNG exporters and Chinese buyers. One involved the proposed Alaska LNG project, though it wasn’t guaranteed. Alaska Gasline Development said in an email it believes the current trade tensions “will be resolved well in advance of Alaska LNG” exports to China.

Since the November trip, Trump has imposed tariffs on imports of some goods from China, and recently he said he would explore the possibility of expanding those duties with a 25% tariff on $200 billion worth of Chinese products.

The latest threat prompted China’s action Friday.It said it has added US LNG to its list of products liable to a

potential 25% import tariff if the US follows through.In June, in a earlier retaliatory move, China announced an

additional 25% tariff on $50 billion worth of US goods, including energy and agricultural products. But LNG was not on the list.

Market fundamentalsChina has imported more than 1.25 million mt of US LNG to date

this year, compared with 1.61 million mt in the whole of 2017, behind Mexico and South Korea, S&P Global Platts Analytics data shows.

China became the largest contributor to global LNG consumption growth in 2017. It surpassed South Korea as the world’s second-largest LNG importer and its share of global LNG demand is expected to rise to the same level as Japan’s by 2030.

“All parties need to keep these fundamental facts in mind as they work through the present difficulties, which have nothing to do with energy trade between our two nations,” said Fred Hutchison, executive director of industry trade association LNG Allies.

In a note to clients, Wood Mackenzie’s research director of global gas and LNG supply, Giles Farrer, said the tariffs, if implemented, will have considerable short-term and long-term implications for both the US and China.

“In the short term, the tariff would likely raise LNG prices,” Farrer said. “Long-term market consequences are likely to be felt on new supply developments as it would restrict the target market for developers of new US LNG projects trying to find new long-term contracts.”

— Harry Weber, Robert Perkins and Sapna Dogra

soCal city-gate cash, skyrockets into the $20s

�■ soCal limiting capacity at the PG&e wheeler Ridge interconnect�■ demand projections showing significant upside

SoCal city-gate saw its balance-of-month swing swap change hands at $24.25/MMBtu on Intercontinental Exchange early Friday, $16/MMBtu stronger than the August index, which settled just two days ago and was already the highest SoCal city-gate index on record by a margin of nearly $3.

The explosion in SoCal’s pricing comes as newly scheduled maintenance is expected to constrain flows on the pipeline through

mailto:[email protected]

4



the second week of August, and recent demand projects foreshadow tight markets in the near term.

In an announcement posted Friday morning, SoCal Gas said it would be limiting capacity at the PG&E Wheeler Ridge interconnect August 13-17 by 150 MMcf/d. While this initially seems marginal, SoCal’s ability to offset the constraints by increasing receipts from Kern River Gas Transmission at Wheeler are limited given that inflows on KRGT at Wheeler are already near their capacity, exacerbating the bullish impact of the maintenance.

In addition, the maintenance comes as demand projections looking through to the second half of August show significant upside, with demand across the West projected to average more than 11.2 Bcf/d and reach a high of 11.8 Bcf/d, according to S&P Global Platts Analytics data.

The last time average demand levels neared this level — just two weeks ago in late July — prices at SoCal city-gates leaped as high as $39/MMBtu.

Historically, August demand levels have come in about 200 MMcf/d above average July levels, highlighting the potential for even further demand builds before the end of the month.

The new maintenance announcement is the most recent in a series of maintenance actions on the pipeline, with SoCal undertaking maintenance at North Wheeler Ridge over August 7-8, limiting capacity by 430 MMcf/d and likely limiting inflows from the PG&E interconnect.

On the back of this, SoCal Gas also has a curtailment order in place for the Bakersfield area that will begin on the morning of August 9 and is scheduled to finish that same afternoon or until work is finished.

These more-immediate maintenance events have already begun to drive California gas prices higher, with SoCal city-gates cash trading as high as $22/MMBtu on Friday.

— Samer Mosis, Arsalan Syed

Nueva era pipeline begins flowing gas across the Us-Mexico border

�■ delivering gas to combined-cycle power plants�■ Pipeline may also deliver to local distribution companies in Monterrey

The 630 MMcf/d Nueva Era Pipeline started posting daily flow data on July 25, showing receipts from the US intrastate Impulsora Pipeline at the Columbia receipt meter for just under 1 MMcf/d and delivering volumes to the Noreste meter in the Monterrey area. Volumes at the border quickly increased to 8 MMcf/d July 27; however, that was likely a result of system testing for linepack or fuel given none of the downstream meters reflected the increase in flows.

The new US-Mexico cross-border system is a joint venture of Howard Energy Partners and Grupo Clisa. Nueva Era noted that a binding open season secured contractual flows of 504 MMcf/d by the Comision Federal de Electricidad (CFE). The CFE – together with Iberdrola – will be operating the 889 MW-Noreste (Escobedo) power plant while the CFE operates the 849 MW-Huinala Complex. The Huinala complex is home to three combined-cycle units as well as Energia del Caribe’s 150 MW-Huinala Flexicycle gas turbine unit.

Iberdrola last confirmed that the Noresete (Escobedo) power plant would enter commercial operations in December 2018; however, flow data on Nueva Era suggest that the power plant may be entering the testing phase of operations.

CFE generation data for 2017 shows that the three CCGT Huinala units had gross output of 3,783 GWh on 849 MW of capacity, implying a capacity factor of 51% and gas consumption of 70 MMcf/d. The gas turbine unit had a capacity factor of 9% in 2017 and consumption of 3 MMcf/d. The Huinala complex has been receiving gas from the Kinder Morgan Mexico (Mier–Monterrey) pipeline system but will likely switch to supply from Nueva Era. Kinder Morgan Mexico has the ability to deliver into the Monterrey area, which will help free supply on the SISTRANGAS system, which has faced tight balances considering sample production on the latter pipeline has fallen by 0.4 Bcf/d (19%) from a year ago July.

Based on the Huinala data and the 889 MW Noreste (Escobedo) plant, the Nueva Era pipeline can be expected to flow 130 MMcf/d over the next few months.

That said, Nueva Era may also deliver volumes to local distribution companies in Monterrey as well as the 840 MW Iberdrola/CFE Noreste (El Carmen) CCGT planned for September 2019, when the latter could provide an incremental 55 MMcf/d assuming 50% utilization and a quoted heat rate of 6.6 MMBtu/MWh.

Power plant delaysPlatts Analytics is tracking 1.9 GW of combined-cycle generating

capacity in Mexico that is currently under construction and planned to enter service though the rest of 2018. Another 0.9 GW of capacity has been proposed for 2018 but has not yet broken ground.

US exports to Mexico are forecast to average 4.8 Bcf/d in Q4 2018 and aren’t expected to reach 6 Bcf/d until seasonal cooling demand picks up by June 2019. From December 2018 to June 2019, there is an incremental 2.7 GW of combined-cycle capacity that is under construction, with another 2.9 GW of capacity that has been proposed but has yet to break ground. Historically, combined-cycle units have taken roughly 34 to 42 months to enter service from when first proposed, providing downside risk to US pipeline exports to Mexico.

— John Hilfiker




5



FactBoX: columbia maintenance to cut w.Va. production, leave prices unfazed

Upcoming maintenance on Columbia Gas Transmission will put downward pressure on West Virginia gas production beginning Tuesday and continuing through August 14, but it is unlikely to affect upstream hub prices.

Current status�■ Pipeline work on Line 1983 will reduce Columbia’s production-

receipt capacity at the Sherwood Gas Processing Plant to just 165 MMcf/d, the midstream operator said in a critical notice issued this week.

�■ Production declines from Columbia’s maintenance in West Virginia will likely offset expected gains in output from the northeast Pennsylvania dry window, which have been building momentum recently as Transcontinental Gas Pipe Line’s Atlantic Sunrise project approaches its mid-August in-service date.�■ In July, sample production from West Virginia averaged nearly

4.9 Bcf/d; modeled production from Appalachia’s Marcellus and Utica shales was estimated at 28.2 Bcf/d over the same period.

Prices�■ Late Friday, a preliminary settlement at the Columbia Gas

Appalachia hub showed prices for weekend flow dates up about 4.5 cents to $2.685/MMBtu, S&P Global Platts data shows.�■ August forward prices at Columbia Gas Appalachia are up roughly

6 cents/MMBtu since the balance-of-month contract began trading on July 27.�■ During a prior maintenance on Columbia, a 300 MMcf/d cut in

processing receipts from the Sherwood plant had little impact on prices, which moved just 1 cent/MMBtu at the Columbia Gas Appalachia hub.�■ Columbia Gas Appalachia has historically enjoyed a premium to

Dominion South basis pricing due to its direct access to the Gulf Coast via Columbia Gulf pipeline.

— J. Robinson, John McManus

southwestern turns to appalachian wet window to bolster returns

�■ liquids production climbs 44% year over year�■ Marcellus wet iRRs hit 35.7%

Northeast producers are continuing to find ways to increase returns, including targeting liquids and improving upon drilling efficiencies and well designs.

Southwestern Energy, the fourth most prolific US gas producer, has started targeting wetter areas of Appalachia, prompting its natural gas liquids production to jump by 44% year over year, which has led to higher returns.

“We’re driving value from our highest-return Appalachia assets and

Processing receipts�■ Over the past 30 days, Columbia’s gas processing receipts from

the Sherwood plant have averaged 645 MMcf/d, implying that the upcoming maintenance could displace volumes totaling around 480 MMcf/d.�■ Gas processing receipts from Sherwood on Dominion Transmission

and the Braxton Gathering System—both alternative pipeline routes to downstream markets—have averaged 138 MMcf/d and 1.03 Bcf/d, respectively, over the past 30 days according to S&P Global Platts Analytics data.�■ Spare receipt capacity on Dominion Transmission is currently

estimated at just 20 MMcf/d; spare receipt-capacity data for the Braxton system was not available at the time of publication.�■ During a prior maintenance event in mid-June, neither Dominion

Transmission nor Braxton Gathering provided a meaningful outlet for processing volumes ordinarily delivered to Columbia.

appalachian production�■ West Virginia production will face downward pressure during

Columbia’s maintenance, potentially declining by as much as 500 MMcf/d from August 7 to August 14.�■ During a prior maintenance event on Columbia in mid-June, a 330

MMcf/d decline in Columbia’s processing receipts from Sherwood was accompanied by a simultaneous cut in West Virginia sample production of approximately 230 MMcf/d.



6



growing our liquids production base in that area,” CEO Bill Way said during an earnings call Friday. “Our leading transportation portfolio maximizes value in a volatile commodity market.”

Northeast iRRsInternal rates of return per well in the Marcellus wet window are

35.7% compared to 21.6% in the Marcellus Dry, according to S&P Global Platts Analytics. NGLs comprise 32.8% of production in the wet window. This is based on a 12-month forward average of Mont Belvieu prices at $33.89/b.

long as producers continue to improve drilling efficiencies and achieve lower costs per well, incremental regional production in the Northeast is supported from an operator perspective, despite market expectations for prices to remain near recent averages for the next 12 months.

— Brandon Evans

enbridge says Nexus and line 3 Replacement projects progressing well

�■ Gas project startup seen in late Q3�■ oil project to boost market access for alberta producers

Enbridge said Friday its Nexus Gas Transmission pipeline project is nearing completion and remains on track to start up by the end of September, a welcome sign for Appalachian Basin producers eager for more takeaway capacity to downstream markets.

A 50-50 joint venture with DTE Energy, Nexus is expected to support up to 1.5 Bcf/d of incremental production in the US Northeast region, and will drive higher Northeast-to-Midwest region flows while expanding supplies in the Dawn Hub market in Ontario.

During a conference call with investors to discuss second-quarter financial results, Enbridge CEO Al Monaco said construction was going well in Michigan and Ohio and the project was expected to be in service late in the third quarter, in line with the most recent guidance.

The company — like other operators that are proposing or currently building infrastructure in the US Northeast — has struggled with timelines amid the slow regulatory process. The pipelines are key to moving more shale gas to market.

“We believe that North American energy fundamentals remain very strong,” Monaco said.

Also Friday, Enbridge updated the progress of other gas and oil infrastructure projects. It said it doesn’t see any further hurdles in its plans to start construction in Minnesota on the Line 3 Replacement project, with the state’s public utilities commission due to issue a certificate in September.

“We’re awaiting a written order and will work through the federal and state permits,” Monaco said.

In late June, the Minnesota PUC approved a certificate of need and route permit for replacing the 380,000 b/d pipeline that ships Canadian heavy barrels from Edmonton to Superior, Wisconsin.

The federal and state permits include approvals from the US Army Corps of Engineers, state agencies including the Minnesota Department of Natural Resources and the Minnesota Pollution Control Agency, to name a few, Enbridge said in its earnings statement.

The estimated C$9 billion ($7 billion) project will increase pipeline throughput to 760,000 b/d and is a critical piece of infrastructure that will provide land-locked Alberta’s oil producers with further market access, Monaco said.

Enbridge is targeting to start on-site construction in the first quarter of 2019 and is targeting a start-up in the second half of the same year, he said.

In Canada, the first phase of pipeline construction is complete, with about 40% of the pipe now laid, and the remaining segments to

Southwestern reported a record-high 1.8 Bcfe/d output from its Appalachian assets during the second quarter. NGL production increased due to increased activity in the wet window of the southwest Marcellus Basin in West Virginia. This prompted the company to increase it guidance for the year from 950 to 970 Bcfe and NGLs to 62,100 b/d, 37% more than last year, with no additional capital expenditures.

“Our focus on liquids growth continues to improve our economics, and we have ample current and forward planned NGL processing and fractionation capacity to deliver further results,” added Way. “We are working with multiple counterparties to strategically structure additional long-term takeaway capacity for propane plus liquids to maximize price, accommodate future growth, all while continuing flow assurance.”

Faster drillingThe company also boosted production by increasing the number of

completion stages pumped per day by 36% and reduced facility installation recycle times by 52% compared to last year, allowing it to complete 13 more wells during the second quarter than originally planned.

Producers across the Northeast have improved drilling times. One rig can currently drill an average of 1.9 wells per month compared to 1.7 wells per month a year ago. Seventy-two Marcellus and Utica rigs have been operating in the past four weeks compared to 74 in the same period in 2017.The number of horizontal Marcellus and Utica wells drilled during those two time frames were 134 and 124, respectively, showing the increase in drilling efficiencies.

Platts’ Analytics forecasts Northeast production to reach an average 30.6 Bcf/d in December, or 2.4 Bcf/d over current levels. As


7



advance construction later this year, Monaco said.In the US, the pipeline replacement work in Wisconsin is now

complete and has been placed into service, he said.— Harry Weber and Ashok Dutta

Pembina anticipates FeRC decision on Jordan Cove in 2019

�■ Project could be in service by 2024�■ Jordan Cove acquired in Veresen acquisition

Pembina Pipeline expects a decision in the second half of 2019 on its reapplication to the US Federal Energy Regulatory Commission for construction of its Jordan Cove LNG export project.

With a positive ruling from the regulator, the project could be in service by 2024, President and CEO Mick Dilger said during an August 2 conference call. The Calgary, Alberta-based company is going “full steam ahead” in its pursuit of contracts to underpin the facility and is still receiving customer interest in it despite FERC’s 2016 rejection of the project.

Pembina inherited the troubled project on the Oregon Coast in its 2017 acquisition of Veresen. The company has said it would not spend more than C$10 million per month on the facility. “We talked about spending C$10 million a month. We’re well under that year to date,” Dilger said. “There’s not a chance we’re going higher than that.”

Pembina is trying to advance the Jordan Cove project. The company submitted a modified application for the facility, which has a conditional authorization from the US Department of Energy to export as much as 0.8 Bcf/d of liquefied gas. Jordan Cove has sought to increase that authorization to 1.08 Bcf/d.

Dilger said differences in management philosophy led to Jordan Cove LNG CEO Elizabeth Spomer’s departure in May.

“We’re very intrusive owners, and that just wasn’t a fit for Betsy,” Dilger said.

Separately on August 2, Pembina reported second-quarter adjusted EBITDA of C$700 million, more than doubling the C$297 million in the same quarter of 2017 following the Veresen acquisition. The S&P Global Market Intelligence consensus adjusted EBITDA estimate for the most recent quarter was C$650.8 million.

— Gene Laverty, S&P Global Market Intelligence

Noble energy to shift capital from Permian, mostly to Colorado’s dJ Basin

Noble Energy will shift some spending outside the US’ Permian Basin, owing to takeaway constraints in West Texas and southeast New Mexico, its top executives said Friday.

The company is also raising its capital budget by about 7% to $3 billion, largely due to inflation and to scope changes on some onshore facility projects that enhance reliability.

“Given industry pressures in the Permian due to widening basis differentials and service cost inflation, we plan to moderate our activity in the Delaware Basin,” Noble CEO Dave Stover said during a second-quarter earnings conference call. “We’ll reduce planned completions

later this quarter and into 2019 to better align our activity with expected timing of pipeline additions [that start up in late 2019].”

Stover added that Noble will “reallocate” some Permian activity into other areas, primarily the DJ Basin of Colorado.

Of the roughly $200 million additional dollars added to Noble’s 2018 capex, about half or more will go toward mitigating cost inflation, particularly in the Permian, which has crept up as a result of tightening demand for oilfield services.

The unspecified sum taken out of the Permian to be reallocated to the DJ Basin will result in additional volumes in that area, said Gary Willingham, Noble’s executive vice president for operations. DJ volumes averaged 121,000 b/d of oil equivalent production in Q2, with more than 50% of output oil.

Higher inflation“We’ve said all along we expected 10% to 15% inflation this year,”

Willingham said. “We have built some of that into the budget, but we also assumed, given our track record and where we were with our developments, particularly in the Permian, we could offset a large part of that with efficiencies.”

While there have been efficiencies in both the DJ and the Permian, inflation has trended toward the high end of the range, he said, adding “a bit more is coming in.”

Monies shifted out of the Permian would be tied to export capacity, to “give the system time to grow the capacity to deliver wells we’d be drilling and completing,” Willingham said. “Assuming they’re on track, we could start adding back frac crews into the Permian relatively early next year.”

Asked about where monies taken out of the Permian would be deployed in the DJ, Willingham was not precise, although he suggested some cash could be deployed to the Mustang area where early well results are “very encouraging.” The majority of Noble’s DJ production comes from two other areas in that play.

Willingham said additional natural gas processing capacity has been added in the DJ which removes previous constraints in that arena.

Noble’s total company sales volumes for Q2 averaged 346,000 boe/d, up 11% year on year, driven by higher production from each of its US onshore unconventional plays, which also include the Permian and Eagle Ford Shale in South Texas.

The company’s US onshore oil production in Q2 totaled 105,000 b/d, up 22% compared to the same period in 2017.

Permian volumes totaled 47,000 boe/d, just over double year-ago output, while the Eagle Ford volumes were 76,000 boe/d, up 10%.

— Starr Spencer

Homeland security forms group to coordinate Us cyber defense across sectors

�■ More opportunities for coordination across sectors�■ Collaboration to focus on managing threats

Saying critical industries such as energy utilities and banks often face similar cyber threats, the US Department of Homeland Security has created a central body to coordinate protection and develop a “government/industry playbook” across multiple sectors.




8



The National Risk Management Center is intended to identify cyberrisks and coordinate threat management across critical infrastructure, aiming to integrate the defense strategies that are in play in various parts of the US.

“Risk management activities are frequently stove-piped and opportunities exist for additional coordination across sectors and between government and industry, a distinct need given the crosscutting nature of critical infrastructure technologies like industrial control systems and the internet of things,” the DHS wrote Tuesday in a fact sheet on the National Risk Management Center.

To effectively protect critical infrastructure, the DHS acknowledged that the National Risk Management Center will first need to define what constitutes “truly critical” parts of the nation’s systems. This will be among the first government-industry activities the new center tackles, the department said.

Efforts to protect critical infrastructure have “too often” been focused on the primary assets and entities involved in the critical infrastructure segments, the DHS said, noting that the more peripheral contributors to critical infrastructure functions and the interconnections between sectors have gone overlooked.

For instance, an April attack on a third-party data system used by various energy companies for scheduling gas flows on pipelines highlighted the vulnerability that companies can expose themselves to when they inevitably engage an outside entity to manage some part of their business.

“What I find fascinating is that ... it’s the infrastructure that’s moving the commodity that gets put under the microscope but not the vendor,” Kimberly Denbow, the American Gas Association’s senior director of security, operations and engineering services said in an interview earlier in 2018. More emphasis should be put on ensuring that third-party entities are able to provide a high level of cyber protection, especially when those businesses are working closely with critical infrastructure companies, she said.

The DHS also said the National Risk Management Center will focus on moving beyond information sharing about the risks and problems and increase the focus on collaboratively developing trusted ways of managing threats. The center will aim to develop a framework for highlighting crucial supply chain elements across different infrastructure sectors and finding secure ways to address supply chain needs.

Nation-state actors have tried to breach critical infrastructure operations in multiple sectors, requiring coordination between industry and government, the department said. The DHS said the new center will be tasked with developing a standardized playbook for how to efficiently and effectively integrate risk management between the public and private sectors.

In creating the center, the DHS said it was responding both to the “increasingly complex threat environment” and to rising demand from industries for better integrated government support.

— Sarah Smith, S&P Global Market Intelligence

PiPeliNe MaiNteNaNCestart date end date Pipeline description07-Aug 14-Aug Columbia Gas TCO maintenance likely to cut WV production

01-Aug 01-Jan El Paso El Paso declares force majeure on their Line 3130

01-Aug 06-Aug Millennium Millennium maintenance impacting NE PA production

01-Aug 31-Aug NGPL NGPL recently announced a Force Majeure on its Southwest leg that is likely to severely weaken prices at the NGPL Midcon hub for the entirety of August.

10-Mar 31-Dec SOCAL SOCAL Southern Zone restricted by 532 MMcf/d until further notice

29-Jul 16-Sep SOCAL Topock maintenance extended through summer

tHe BaRRelthe Platts blog that spans the commodities spectrumRead and respond to posts from Platts editors and analysts on issues affecting a wide range of the world’s energy, petchem, and agriculture resources.

oil, natural Gas, electricity and coal, Steel and metals, Petrochemicals, Biofuels and agriculture, Renewables

…as well as commentary, analysis and observations on everything from global politics, to market dynamics. The Barrel strives to be the world’s most complete commodities blog, and its comment section is always open for your thoughts.

visit http://blogs.platts.com/ now!


http://blogs.platts.com/

9



Platts to discontinue daily and monthly natural gas locations

Based on a review of historical liquidity and market feedback, S&P Global Platts will discontinue North American natural gas daily and monthly indices for the following Platts locations:

Location:

REX, Clarington, Ohio IGBGO00 (Daily Trade Date) IGBGO03 (Monthly Symbol)

Tennessee, zone 4-Ohio IGBHO00 (Daily Trade Date) IGBHO03 (Monthly Symbol)

The daily prices will be discontinued as of flow date October 1, 2018, and the monthly prices will be discontinued beginning with November 2018 bidweek. Affected publications are Gas Daily, Inside FERC Gas Market Report, Natural Gas Alert pages 1310, 1318, 1350, 1351,1352, 1353, 1354, 1355, 1357, and Market Data categories GI, GD, GJ, and GM.

Associated daily and monthly symbols will also be discontinued.

Please send any comments to the above to [email protected] and [email protected]. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.

Platts extends feedback for transitioning iCe natural gas locations to Platts locations

S&P Global Platts is extending its feedback period on an original proposal dated March 2 to transition the following daily natural gas ICE locations to Platts locations:

1. The ICE location ICE Iroquois, zone 1 (delivered excl. Waddington) with trade date symbol JAABS00.

2. The ICE location ICE Tennessee, zone 5, 200 Line, dlvd downstream of station 245 with trade date symbol of JAAEV00.

The methodology for these locations would change. Currently only trades executed on ICE are used in final daily indices, the trades are not screened for outliers, and there are no assessments in absence of trading on ICE and no index would be published. As Platts locations, price reporter trades and ICE non-price reporter legs of trades would be included in final daily indices, the trades would be screened for outliers, and there may be assessments in the absence of reported trading activity. In addition, Platts would clearly define the locations in the North American natural gas methodology guide.

Platts has extended the original consultation period and is now seeking feedback on the proposal above until August 31, 2018, to [email protected] and [email protected].

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.

s&P Global Platts changes Mexico natural gas locations and modifies transport costs

S&P Global Platts has made the following changes to its Mexico natural gas locations as of trade date July 31, 2018:

1. The following locations have been added: Aguascalientes, Ciudad Pemex, Merida, Guadalajara, Topolobampo, Tula, Tuxpan, and Villa de Reyes

2. The following locations have been discontinued: Alamo, TX, Hidalgo, TX, Rio Bravo, TX, Alcalde Mayor, Matamoros, Miguel Aleman, and Tierra Blanca

3. Platts has also modified the transport costs for all 16 Mexico locations to

SuBScriBer noteS

reflect fully loaded transportation costs instead of just reservation fees

The prices are currently published on the Platts Mexico app. They will be added to the Platts Analytics Mexico Energy Weekly Spotlight series on August 10 and the Gas Daily market report and new market category GX (Natural Gas: Gas Daily Mexico) in September 2018.

For more information, please see the Mexico Natural Gas Methodology guide located at: https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/natural-gas

Please send any comments to [email protected] and [email protected]. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.

10



nymeX Henry HuB GaS FutureS contract, auG 3 settlement High low +/- Volume

Sep 2018 2.853 2.862 2.814 0.037 80694Oct 2018 2.862 2.870 2.821 0.040 16749Nov 2018 2.898 2.906 2.858 0.041 4172Dec 2018 2.998 3.004 2.960 0.040 2038Jan 2019 3.082 3.089 3.044 0.039 3032Feb 2019 3.045 3.051 3.007 0.039 1171Mar 2019 2.941 2.947 2.901 0.038 1806Apr 2019 2.626 2.628 2.604 0.021 2351May 2019 2.595 2.598 2.581 0.017 1144Jun 2019 2.624 2.626 2.608 0.016 514Jul 2019 2.657 2.658 2.642 0.015 238Aug 2019 2.662 2.664 2.654 0.014 140Sep 2019 2.644 2.645 2.630 0.015 154Oct 2019 2.659 2.660 2.648 0.014 614Nov 2019 2.708 2.708 2.702 0.012 291Dec 2019 2.834 2.835 2.828 0.011 16Jan 2020 2.929 2.929 2.923 0.011 28Feb 2020 2.892 2.892 2.888 0.011 16Mar 2020 2.789 2.789 2.786 0.011 9Apr 2020 2.496 2.496 2.488 0.006 47May 2020 2.460 2.461 2.460 0.006 8Jun 2020 2.489 2.490 2.489 0.006 1Jul 2020 2.519 2.519 2.519 0.006 1Aug 2020 2.526 2.526 2.526 0.006 1Sep 2020 2.510 2.510 2.510 0.006 0Oct 2020 2.525 2.525 2.525 0.006 0Nov 2020 2.584 2.584 2.584 0.005 0Dec 2020 2.714 2.714 2.714 0.005 0Jan 2021 2.820 2.820 2.820 0.005 0Feb 2021 2.790 2.790 2.785 0.005 3Mar 2021 2.708 2.708 2.708 0.005 0Apr 2021 2.451 2.451 2.451 0.005 0May 2021 2.420 2.425 2.420 0.005 4Jun 2021 2.449 2.455 2.449 0.005 2Jul 2021 2.480 2.790 2.785 0.005 1Aug 2021 2.493 2.500 2.493 0.005 1Contract data for ThursdayVolume of contracts traded: 327,419Front-months open interest:Sep, 294,075; Oct, 177,035; Nov, 148.118Total open interest: 1,576,382Data is provided by a third-party vendor and is accurate as of 5:30 pm Eastern time.

NYMEX PROMPT MONTH FUTURES CONTINUATION

Note: The entire wick of the candlestick depicts the high and low daily front-month Henry Hub futures price range. The body of the candlestick depicts the price range between the open and close, with a red candlestick indicating a close on the downside and a green candlestick indicating a close on the high end.Source: S&P Global Platts

($/MMBtu)

2.6

2.7

2.8

2.9

3.0

3.1

03-Aug18-Jul29-Jun13-Jun25-May09-May23-Apr05-Apr

MONTH�AHEAD TEMPERATURE FORECAST MAP

Source: S&P Global Platts, Custom Weather

US GAS STORAGE SURPLUS vs ROLLING 5�YEAR AVERAGE

-750

-500

-250

0

250

500

1

2

3

4

5

6

Aug-18May-18Feb-18Nov-17Aug-17

(Bcf) ($/MMBtu)

HH prompt (right)HH cash (right)

3-week forecastStorage surplus

NatURal Gas FUtURes

nymeX Sept. gas increases as storage concerns grow

NYMEX September natural gas futures increased Friday, up 3.7 cents to settle at $2.853/MMBtu, with the market feeling upward pressure as supply concerns become more imminent going to the winter months.

The front-month contract traded Friday between $2.814/MMBtu and $2.862/MMBtu.

US dry gas production is expected to fall 100 MMcf day on day to 79.9 Bcf on Friday, the third consecutive day that dry gas output has been beneath 80 Bcf, according to S&P Global Platts Analytics.

US dry gas production is at record levels but recent power burn demand is inhibiting its impact on reducing the US storage deficit. Total stocks are 688 Bcf less than inventories a year ago and 565 Bcf under the five-year average, according to US Energy Information Administration data.

The market seems to be reacting to supply concerns, sources say, with the front-month increasing about 10 cents over the past two trading days.

A fourth straight lower-than-expected storage injection in the week that ended July 27 is due to the market underestimating exports to Mexico, according to Platts Analytics.

Exports to Mexico are averaging 4.4 Bcf/d so far this year, 300 MMcf/d above exports in the same period last year, according to Platts Analytics.

The North American gas market is transforming as exports to Mexico and LNG shipments are only going to increase and put further pressure on the market.

That said, China is threatening to impose a 25% import duty on US LNG, which would be bearish for prices as gas could possibly be stranded in the US if the record production levels persist.

Total US demand on Friday — including exports to Mexico and LNG exports — is set to fall 800 MMcf to 76.5 Bcf, led primarily by a fall in power burn, according to Platts Analytics.

— Arsalan Syed


11



nortHeaSt SPot anD ForwarD BaSiS ($/MMBtu) spot basis Prompt forward basis

Mtd Mtd 03-aug 02-aug Chg avg. last year Chg 03-aug 02-aug Chg

Henry Hub 2.84 2.79 0.05 2.81 2.78 +0.03 2.85 2.82 0.04

Northeast region

Algonquin CG 0.24 0.17 0.07 0.23 0.12 +0.11 0.03 0.03 -0.01

Iroquois Zn2 0.31 0.19 0.12 0.26 0.12 +0.14 -0.24 -0.24 0.00

Tenn Zn6 Dlvd 0.12 0.13 -0.01 0.17 0.07 +0.11 0.09 0.10 -0.01

Transco Zn 6 NY 0.13 0.09 0.04 0.11 -0.13 +0.24 -0.27 -0.26 -0.01

Transco Zn5 Dlvd 0.15 0.10 0.05 0.12 0.08 +0.04 -0.01 0.00 -0.01

Transco Zn6 Non-NY 0.14 0.06 0.08 0.10 -0.13 +0.24 -0.29 -0.28 -0.01

TX Eastern M-3 -0.18 -0.10 -0.09 -0.13 -0.81 +0.68 -0.31 -0.30 -0.01

appalachia

Col Gas Appal -0.16 -0.15 -0.01 -0.16 -0.11 -0.06 -0.21 -0.21 0.00

Dominion N Pt -0.29 -0.24 -0.05 -0.27 -0.87 +0.60 -0.52 -0.50 -0.02

Dominion S Pt -0.28 -0.25 -0.03 -0.27 -0.88 +0.62 -0.43 -0.41 -0.02

Lebanon Hub -0.07 -0.09 0.02 -0.09 — — -0.14 -0.15 0.01

Millennium East Receipts -0.55 -0.44 -0.11 -0.44 -0.85 +0.41 -0.46 -0.45 -0.01

Tenn Zn4-200 Leg -0.13 -0.15 0.02 -0.13 -0.72 +0.59 -0.38 -0.37 -0.01

Tennessee zone 4-300 leg -0.51 -0.40 -0.11 -0.42 -0.94 +0.52 -0.57 -0.56 -0.01

Texas Eastern M-2 receipts -0.28 -0.21 -0.08 -0.25 -0.93 +0.68 -0.43 -0.41 -0.02

Transco Leidy Line receipts -0.34 -0.30 -0.04 -0.31 -0.87 +0.57 -0.46 -0.44 -0.02

other locations

Dracut MA — — — — — — 0.33 0.34 -0.01

Iroquois Receipts 0.28 0.17 0.11 0.23 0.07 +0.16 -0.24 -0.24 0.00

Niagara -0.07 -0.02 -0.05 -0.04 — — 0.01 -0.02 0.03

Source: Platts M2M data

NORTHEAST DEMAND FORECAST


13

14

15

16

17

17-Aug13-Aug09-Aug05-Aug01-Aug28-Jul24-Jul

Actual(Bcf/d) Forecast Yesterday forecast Normal

nortHeaSt GaS marketS

Northeast spot gas strengthens as temperatures rise

Most spot US Northeast and Appalachian natural gas prices rose Friday as demand in the region is expected to climb through the weekend.

Trading Friday encompassed three flow days to account for the weekend.

According to S&P Global Platts Analytics data, total Northeast demand is set to average around 15.2 Bcf/d over the next three days, rising from 14.9 Bcf on Saturday to 15.7 Bcf by Monday, as temperatures in the region are expected to tick higher as the weekend progresses.

The high temperature in New York City is forecast by the US National Weather Service to reach 90 degrees on Sunday and Monday, compared with an 85 degrees average for those days, likely boosting power demand in New York City.

The Iroquois Zone-2 spot price jumped around 17 cents day on day to $3.15/MMBtu, its highest level since July 3.

In Appalachia, Dominion North saw a 0.5-cent increase for weekend flows to $2.555/MMBtu, while seeing its cash basis weaken against the Henry Hub spot price to minus 28.5 cents/MMBtu, as the Louisiana benchmark rose 5 cents to $2.84/MMBtu.

Over the past 60 trading sessions, Dominion North has averaged a 52.4-cent discount to Henry Hub, compared with minus 84.5 cents/MMBtu in the same time period in 2017, as increased outflows from the region have boosted the basis.

According to Platts Analytics data, the Northeast has averaged a 9 Bcf/d outflow in the first three days in August, a 53% jump from a 5.9 Bcf/d average outflow in the year-ago period.

Aiding the increase in flows from the Northeast region is robust production that has paced well above year-ago levels, according to Platts Analytics data. Total production in the Northeast is averaging 27.4 Bcf/d so far in 2018, a 16% increase from 23.6 Bcf/d in the same period last year.

— Eric Janssen

NORTHEAST FORWARD BASIS


-2

0

2

4

6

8

Sep-21Mar-21Sep-20Mar-20Sep-19Mar-19Sep-18

Algonquin CG($/MMBtu) Iroquois Zn2 Transco Zn6 NY

APPALACHIA FORWARD BASIS($/MMBtu)


-1.00

-0.75

-0.50

-0.25

0.00


Col Gas App Dominion S Tennessee Z4-300 Transco Leidy


12



SoutHeaSt SPot anD ForwarD BaSiS ($/MMBtu) spot basis Prompt forward basis


Henry Hub 2.84 2.79 0.05 2.81 2.78 +0.03 2.85 2.82 0.04

southeastANR LA -0.06 -0.08 0.02 -0.07 -0.06 -0.01 -0.13 -0.13 0.00Col Gulf LA -0.05 -0.06 0.01 -0.06 -0.06 +0.00 -0.13 -0.13 0.00Col Gulf-Mainline -0.08 -0.09 0.01 -0.10 -0.07 -0.02 -0.14 -0.14 0.01FL Gas Zn1 -0.02 -0.05 0.03 -0.04 -0.04 +0.00 -0.05 -0.05 0.00FL Gas Zn2 -0.05 -0.06 0.01 -0.06 -0.05 -0.01 -0.03 -0.03 0.00FL Gas Zn3 0.06 0.01 0.05 0.02 -0.01 +0.03 0.02 0.02 0.00Florida CG 0.30 0.33 -0.03 0.30 — — 0.31 0.31 0.00SoNat LA -0.03 -0.05 0.02 -0.05 -0.05 +0.00 -0.07 -0.07 0.00Tenn LA 500 Leg -0.03 -0.06 0.03 -0.05 -0.04 -0.01 -0.08 -0.08 0.00Tenn LA 800 Leg -0.06 -0.07 0.02 -0.07 -0.09 +0.02 -0.07 -0.08 0.00TETCO-M1 -0.10 -0.08 -0.02 -0.08 -0.02 -0.06 -0.06 -0.06 0.00Texas Gas Zn SL -0.06 -0.09 0.03 -0.07 — — -0.13 -0.13 0.00Texas Gas Zn1 -0.08 -0.10 0.02 -0.09 -0.07 -0.02 -0.13 -0.13 0.00Transco Zn2 -0.01 -0.06 0.05 -0.04 -0.04 +0.00 -0.08 -0.08 0.00Transco Zn3 -0.01 -0.02 0.01 -0.02 -0.03 +0.01 -0.05 -0.05 0.00Transco Zn4 0.01 -0.01 0.02 0.00 -0.02 +0.02 -0.05 -0.05 0.00Trunkline E LA -0.12 -0.06 -0.06 -0.09 -0.09 +0.00 -0.11 -0.11 0.01Trunkline WLA — — — -0.05 — — -0.07 -0.07 0.00Tx Eastern E LA -0.07 -0.06 -0.01 -0.07 -0.06 -0.02 -0.07 -0.07 0.00TX Eastern W LA -0.04 -0.04 0.00 -0.05 -0.05 +0.00 -0.06 -0.06 0.00

east & south texasAgua Dulce — — — 0.07 — — 0.09 0.08 0.00Carthage Hub -0.10 -0.10 0.01 -0.10 -0.06 -0.04 -0.11 -0.11 0.00Houston Ship Channel 0.05 0.05 0.00 0.05 -0.01 +0.06 0.08 0.07 0.00Katy 0.04 0.05 -0.01 0.05 -0.01 +0.06 0.08 0.07 0.00NGPL S TX 0.01 0.04 -0.04 0.02 -0.03 +0.05 0.02 0.02 0.00NGPL Texok Zn -0.11 -0.11 0.00 -0.11 -0.09 -0.02 -0.14 -0.15 0.01Tenn Zn0 -0.09 -0.11 0.03 -0.10 -0.12 +0.02 -0.11 -0.11 0.00Transco Zn1 -0.05 -0.08 0.03 -0.07 -0.07 +0.00 -0.06 -0.06 0.01TX Eastern E Tx -0.09 -0.06 -0.03 -0.08 -0.08 +0.00 -0.07 -0.07 0.00TX Eastern S TX 0.01 0.03 -0.02 0.01 -0.03 +0.04 0.02 0.02 0.00


SOUTHEAST & TEXAS DEMAND FORECAST


27

28

29

30

31

32



SoutHeaSt GaS marketS

Regional climb in southeast gas prices, some double-digit growth

All hubs across the Texas and Southeast regions moved higher on Friday, with the exception of Trunkline, ELA, with bullish outlooks from South Central storage levels and production declines seen over the past few days.

Two hubs in particular led the increases on Friday.FGT-Zone 3 and Transco, Zone 2 had 9.5-cent and 10-cent

increases, respectively, trading at $2.895/MMBtu and $2.83/MMBtu. The significant gains on Friday marked a pivot away from Thursday’s moderately mixed price movements.

This comes a day after the US Energy Information Administration reported a 12-Bcf withdrawal in the South Central region for the week ended July 27. While total South Central inventories are generally trending with 2017 storage activity, the current level is 293 Bcf less than the year-ago level. Withdrawals this summer began the week ending July 6. If summer withdrawals continue, in the next two weeks the South Central region may break through the five-year minimum seen for August.

The climb in prices allowed many hubs in the Southeast to cross the $2.80/MMBtu threshold. The only hub that reached the $2.80/MMBtu mark on Thursday was FGT-Zone 3, trading at $2.80/MMBtu. In the Southeast, Transco Zone 3 was trading at $2.830/MMBtu on Friday and Transco Zone 4 was trading at $2.85/MMBtu.

Henry Hub cash gained five cents to $2.84/MMBtu. Other hubs in the region that have crossed the $2.80/MMBtu mark are TGP’s 500 leg and Southern Natural, Louisiana, at $2.815/MMBtu and $2.81/MMBtu, respectively.

The bullish storage picture is compounded by production declines in the regions, down from the high of 32.352 Bcf/d seen this week on Tuesday. Production was seen at 30.958 Bcf/d on Friday, according to S&P Global Platts Analytics. Demand for Friday has decreased to 31.441 Bcf/d, down 749 MMcf/d from 32.190 Bcf/d on Tuesday, according to Platts Analytics.

Premium basis spreads to Henry Hub cash are seen at Transco Zone 4 and Florida Gas Transmission Zone 3. Transco Station 85 has a one cent premium. Florida Gas Transmission Zone 3 carried the highest basis spread with a 5.5-cent premium to Henry Hub.

— Jason Lord

SOUTHEAST FORWARD BASIS


-0.20

-0.15

-0.10

-0.05

0.00

0.05


Col Gulf-Mainline FL Gas Zn3 Transco Zn4 TX Eastern W LA($/MMBtu)

EAST AND SOUTH TEXAS FORWARD BASIS


-0.3

-0.2

-0.1

-0.0

0.1


Agua Dulce Houston Ship Chnl NGPL Texok Zn TX Eastn S TX($/MMBtu)


13



central SPot anD ForwarD BaSiS ($/MMBtu) spot basis Prompt forward basis


Henry Hub 2.84 2.79 0.05 2.81 2.78 +0.03 2.85 2.82 0.04

Midwest/east Canada

ANR ML 7 — — — — -0.04 — -0.07 -0.10 0.03

Chicago CG -0.01 -0.05 0.05 -0.04 -0.02 -0.02 -0.07 -0.11 0.04

Consumers Energy CG 0.05 0.01 0.05 0.02 0.00 +0.02 0.04 0.01 0.03

Dawn Ontario 0.15 0.10 0.06 0.10 0.01 +0.09 0.06 0.04 0.03

Mich Con CG 0.05 0.01 0.04 0.02 -0.03 +0.05 0.02 -0.01 0.03

Northern Ventura -0.07 -0.10 0.03 -0.09 -0.10 +0.01 -0.15 -0.20 0.05

Viking-Emerson -0.05 -0.11 0.07 -0.10 -0.28 +0.18 -0.28 -0.28 0.00

Midcontinent

ANR OK -0.34 -0.27 -0.07 -0.38 -0.22 -0.16 -0.47 -0.47 0.00

Enable Gas East -0.20 -0.12 -0.08 -0.14 -0.12 -0.02 -0.22 -0.22 0.01

NGPL Midcontinent -0.40 -0.41 0.01 -0.48 -0.20 -0.28 -0.46 -0.46 0.00

Northern NG Demarc -0.08 -0.10 0.02 -0.09 -0.10 +0.01 -0.16 -0.21 0.06

Oneok OK -0.98 -0.96 -0.02 -1.01 -0.45 -0.56 -1.10 -1.16 0.06

Panhandle TX-OK -0.42 -0.35 -0.08 -0.45 -0.27 -0.19 -0.51 -0.51 0.00

Southern Star TxOkKs -0.41 -0.32 -0.09 -0.43 -0.31 -0.12 -0.51 -0.51 0.00


MIDWEST & MIDCONTINENT DEMAND FORECAST


10

11

12

13

14



central GaS marketS

Chicago city-gates hit 30-day high as demand forecast rises

Most cash natural gas prices in the Central US rose Friday on an expected bump in demand next week that would lift regional consumption to its highest level in two weeks, with some in the market area tacking on double digits.

Chicago city-gates jumped 10 cents to $2.835/MMBtu, its highest level since the end of June, according to S&P Global Platts data.

S&P Global Platts Analytics data show total residential-commercial and power burn levels in the Central market will peak at 13.1 Bcf/d on Tuesday.

A key driver in the upward swing is the forecast for temperatures in Chicago reaching highs in the mid-90 degrees Fahrenheit on Saturday and Sunday, possibly providing upside potential to existing expectations of demand of 12 Bcf/d.

The last time Chicago reached a high of 95 degrees on July 13, demand in the region hit 13.6 Bcf/d, Platts Analytics data show, around 1.6 Bcf/d above current and projected levels.

Friday’s price put cash more than 10 cents above the Chicago city-gate August bidweek settlement price of $2.73/MMBtu.

Outside of Chicago, Michigan prices also rose, with MichCon city-gates tacking on 9 cents to reach $2.89/MMBtu, also the highest mark seen since the end of June.

Things were not as bullish in the production region, with most prices slipping a few cents. Panhandle, Tex-Ok fell 3 cents to $2.42/MMBtu.

Looking ahead, the key demand centers of Chicago and Detroit are expected to sit right along the fringes of a pocket of below-average temperatures during the next eight to 14 days, forecasts from the US National Weather Service show, likely trimming demand into the middle of the month.

— Ryan Ouwerkerk

MIDWEST FORWARD BASIS


($/MMBtu)

-0.5

0.0

0.5

1.0


Chicago CG Dawn Ontario Mich Con CG Northern Ventura

MIDCONTINENT FORWARD BASIS


-0.8

-0.6

-0.4

-0.2

0.0


NGPL Midcon Northern NG Demarc Panhandle TX-OK ANR OK($/MMBtu)


14



weSt SPot anD ForwarD BaSiS ($/MMBtu) spot basis Prompt forward basis


Henry Hub 2.84 2.79 0.05 2.81 2.78 +0.03 2.85 2.82 0.04

Northwest

GTN Kingsgate -0.34 -0.42 0.08 -0.36 -0.43 +0.07 -0.61 -0.64 0.03

Northwest Sumas -1.32 -0.60 -0.73 -0.80 -0.25 -0.55 -0.61 -0.61 0.00

Northwest Stanfield -0.30 -0.34 0.04 -0.31 -0.23 -0.08 -0.48 -0.50 0.02

Rockies

Cheyenne Hub -0.35 -0.31 -0.04 -0.33 -0.24 -0.08 -0.54 -0.56 0.02

CIG Rockies -0.40 -0.33 -0.07 -0.39 -0.25 -0.14 -0.54 -0.56 0.02

Kern River Opal -0.25 -0.23 -0.02 -0.23 -0.17 -0.06 -0.43 -0.44 0.01

NW WY Pool -0.26 -0.25 -0.02 -0.25 -0.22 -0.04 -0.43 -0.44 0.01

Questar Rky -0.34 -0.32 -0.02 -0.34 -0.23 -0.11 -0.44 -0.45 0.01

southwest

El Paso Permian -0.66 -0.48 -0.19 -0.60 -0.17 -0.43 -0.87 -0.90 0.03

El Paso San Juan -0.41 -0.32 -0.09 -0.36 -0.18 -0.19 -0.46 -0.39 -0.07

Kern River Dlvd 1.63 3.12 -1.50 2.74 0.41 +2.33 1.96 1.81 0.15

PG&E CG 0.46 0.49 -0.03 0.46 0.45 +0.01 0.48 0.46 0.02

PG&E Malin -0.15 -0.21 0.06 -0.18 -0.12 -0.06 -0.33 -0.35 0.02

PG&E South -0.35 -0.09 -0.26 -0.22 0.03 -0.25 -0.34 -0.28 -0.06

SoCal Gas 1.25 1.45 -0.20 1.64 0.26 +1.38 1.75 1.61 0.14

SoCal Gas Citygate 20.21 10.62 9.59 12.59 0.74 +11.85 6.00 5.20 0.80

Transwestern Permian -0.69 -0.39 -0.31 -0.56 -0.19 -0.37 -0.81 -0.84 0.02

Waha -0.72 -0.49 -0.24 -0.61 -0.14 -0.48 -0.87 -0.89 0.03

west Canada

AECO-C -2.01 -1.54 -0.47 -1.70 -0.96 -0.74 -1.69 -1.65 -0.04


SOUTHWEST, NORTHWEST, ROCKIES DEMAND FORECAST


11

12

13

14



weSt GaS marketS

west prices mixed, with soCal jumpingCash prices in Southwest and Northwest were mixed on Friday, with SoCal City-Gate price reaching the second-highest level seen since July 24.

SoCal City-Gate saw its cash price increase $9.640/MMBtu on the day to $23.050/MMBtu on Friday, the highest levels seen since record-breaking prices roiled the market on July 24.

Futures trading underlines expectations that stronger pricing will persist further out into the month, with SoCal City-gate balance of the month swing swap contract trading at $24.750/MMbtu Friday morning.

The spike in prices could be related to the ongoing maintenance on the SoCal Gas system, which began Thursday and is scheduled through 11:30 pm Friday.

Looking ahead, SoCal announced that it will be undertaking maintenance at North Wheeler Ridge over August 7-8 that will limit capacity by 430 MMcf/d. The two-day maintenance will most likely only affect PG&E volumes as the interconnect is the only one of the two located in the North Wheeler Ridge Area, according to S&P Global Platts Analytics

Looking further out to next week, SoCal Gas has a curtailment scheduled in the Bakersfield area that will begin on the morning of August 9 and is scheduled to finish that same afternoon or until work is finished.

The constraint is also putting downside impact on prices for inflows, cash prices for El Paso South Mainline falling approximately 63 cents on the day to $5.035/MMbtu.

Looking further west, Waha cash price fell 18.5 cents on the day to trade around $2.12/MMBtu, but is approximately 30 cents more than levels seen in late July.

Total West demand is forecast to reach 11.8 Bcf/d by August 8, approximately 220 MMcf/d higher than the average of 11.58 Bcf/d averaged in the price blowout seen late in July, according to Platts Analytics.

The blowout in demand seen late last month had a noted impact on storage levels, with the US Energy Information Administration reporting a storage withdrawal of 7 Bcf in the Pacific (Washington, Oregon and California) for the week ending July 27, the largest summer storage withdrawal since July 2012.

— Samer Mosis

WEST SUPPLY LOCATIONS FORWARD BASIS


-2.0

-1.5

-1.0

-0.5

0.0


AECO-C($/MMBtu) CIG Rockies El Paso Permian El Paso San Juan

WEST DEMAND LOCATIONS FORWARD BASIS


-2

-1

0

1

2


($/MMBtu) Northwest Sumas PG&E CG SoCal Gas Kern Delivered


15



officers of the Corporation: Charles E. Haldeman, Jr., non-Executive Chairman; doug Peterson, President and Chief Executive officer; Ewout steenbergen, Executive Vice President, Chief Financial officer; steve Kemps, Executive Vice President, general Counsel

Gas Daily Questions? Email:nagas&[email protected]

Managers North America Gas and Power ContentRocco Canonica, +1-720-264-6626Matthew Eversman, +1-713-655-2238Joe Fisher, +1-713-658-3290Chris newkumet, +1-202-383-2141anne swedberg, +1-720-264-6728

EditorsJared anderson, +1-212-904-2002Brandon Evans, +1-720-264-6671Jim Magill, +1-713-658-3229Jasmin Melvin, +1-202-383-2135J. Robinson, +1-720-264-6657Mark Watson, +1-713-658-3214Harry Weber, +1-713-658-3257Maya Weber, +1-202-383-2244Kate Winston, +1-202-383-2012

Spot Market EditorsJohn delapp, +1-713-655-2279Eric Janssen, +1-713-655-2261samer Mosis, +1-713-655-2271Ryan ouwerkerk, +1-713-655-2202

Analysts

Eric Brooks

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luke Jackson

tyler Jubert

Mason Mclean

John McManus

Ross Wyeno

Director, Americas Generating Fuels and Electric

Power Pricing

Mark Callahan

Director, Americas Energy News

James o’Connell

Global Director of Generating Fuels

simon thorne

Manager, Advertisement SalesBob Botelho

Volume 35 / Issue 150 / Monday, August 6, 2018

Platts PresidentMartin Fraenkel

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GAS DAILY


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total net PiPeline FlowS By reGion (MMcf/d*) 02-aug 03-aug Change Mtd Mtd Change avg. last year

supply regions – net pipeline outflows

Texas 9,488 9,430 58 9,495 8,307 1,188West Canada 8,981 8,849 132 8,892 8,564 328Rockies 6,430 6,614 -184 6,521 6,360 161Midcontinent 2,742 3,047 -305 2,840 3,125 -285Northeast 8,854 8,893 -39 9,002 5,893 3,109

demand regions – net pipeline inflows

Southwest 4,933 5,017 84 5,022 5,453 -431Southeast 9,134 9,496 362 9,407 7,811 1,596Northwest 1,873 1,808 -65 1,818 1,707 111Midwest 12,275 11,999 -276 12,068 9,860 2,208East Canada 3,677 4,011 334 3,876 2,870 1,006

* Net pipeline flows by region are the aggregated total interstate pipeline flows across the regional bor-der. Net supply regions are those that historically have had more supply than demand within the region and have been net suppliers of gas to other regions. Net demand regions historically have had more demand than supply and have been net receivers of pipeline gas from other regions.

sHale ValUe CHaiN assessMeNts, aUG 3 $/MMBtu +/-

Gulf Coast ethane fractionation spread 2.937 0.025

Gulf Coast E/P mix fractionation spread 2.505 0.025

E/P mix Midcontinent to Rockies fractionation spread -0.490 0.015

E/P mix Midcontinent fractionation spread -0.485 -0.055

National raw NGL basket price 9.217 0.057

National composite fractionation spread 6.327 0.007

The methodology for these assessments is available at:www.platts.com/IM.Platts.Content/MethodologyReferences/MethodologySpecs/shale-value-chain.pdf

PlattS oil PriceS, auG 3 ($/b) ($/MMBtu)

Gulf Coast spot1% Resid (1) 68.31-68.33 10.93HSFO (1) 63.81-63.83 10.21

Crude spotWTI (Sep) (2) 68.48-68.50 11.81

New york spotNo.2 (1) 83.43-83.47 13.350.3% Resid LP (3) 77.18-77.20 12.350.3% Resid HP (3) 77.18-77.20 12.350.7% Resid (3) 69.18-69.20 11.071% Resid (3) 67.18-67.20 10.75

1= barge delivery; 2= pipeline delivery; 3= cargo delivery

($/MMBtu)

HENRY HUB/NYMEX SPREAD

Henry Hub cash price NYMEX front month close

2.70

2.75

2.80

2.85

2.90

03-Aug02-Aug01-Aug31-Jul30-Jul

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16



07/28-08/03 wkly total 2018 -/+ High low Volumes

east texas

weekly weiGHteD averaGe PriceS 07/28-08/03 wkly total 2018 -/+ High low Volumes

NortheastAlgonquin, city-gates IGBEE04 2.879 0.132 2.936 2.823 1100

Algonquin, receipts IGBDK04 2.600 -0.550 2.600 2.600 5

Dracut, Mass. IGBDW04 — — — — 0

Iroquois, receipts IGBCR04 2.913 0.099 2.926 2.889 708

Iroquois, zone 2 IGBEJ04 2.926 0.092 2.946 2.900 796

Niagara IGBCS04 2.783 0.079 2.806 2.741 261

Tennessee, z6 (300 leg) del. IGBJC04 2.850 0.100 2.950 2.800 9

Tennessee, zone 6 delivered IGBEI04 2.807 0.097 2.869 2.769 895

Texas Eastern, M-3 IGBEK04 2.594 0.110 2.643 2.551 2019

Transco, zone 5 delivered IGBEN04 2.867 0.049 2.890 2.834 3164

Transco, zone 5 del. North IGCGL04 2.871 0.051 2.884 2.849 590

Transco, zone 5 del. South IGCHL04 2.869 0.053 2.890 2.837 2549

Transco, zone 6 N.Y. IGBEM04 2.860 0.064 2.891 2.834 898

Transco, zone 6 non-N.Y. IGBEL04 2.844 0.072 2.866 2.822 1015

Transco, zone 6 non-N.Y. North IGBJS04 2.844 0.072 2.866 2.822 1015

Transco, zone 6 non-N.Y. South IGBJT04 — — — — 0

appalachiaColumbia Gas, Appalachia IGBDE04 2.630 0.050 2.654 2.615 4227

Columbia Gas, Appalachia non-IPP IGBJU04 — — — — 0

Dominion, North Point IGBDB04 2.455 0.079 2.486 2.426 1327

Dominion, South Point IGBDC04 2.456 0.073 2.506 2.418 3308

Lebanon Hub IGBFJ04 2.656 0.067 2.662 2.636 478

Leidy Hub IGBDD04 — — — — 0

Millennium, East receipts IGBIS04 2.353 0.077 2.370 2.326 385

REX, Clarington Ohio IGBGO04 — — — — 0

Tennessee, zone 4-200 leg IGBJN04 2.617 0.101 2.659 2.590 1838

Tennessee, zone 4-300 leg IGBFL04 2.331 0.121 2.341 2.301 688

Tennessee, zone 4-313 pool IGCFL04 2.574 0.093 2.591 2.549 562

Tennessee, zone 4-Ohio IGBHO04 — — — — 0

Texas Eastern, M-2 receipts IGBJE04 2.500 0.092 2.546 2.444 4339

Transco, Leidy Line receipts IGBIW04 2.422 0.098 2.463 2.366 3147

MidcontinentANR, Okla. IGBBY04 2.389 -0.066 2.437 2.349 934

Enable Gas, East IGBCA04 2.591 -0.021 2.617 2.504 799

NGPL, Amarillo receipt IGBDR04 2.606 0.023 2.639 2.596 439

NGPL, Midcontinent IGBBZ04 2.346 -0.155 2.381 2.295 2823

Oneok, Okla. IGBCD04 1.696 0.005 1.728 1.669 1570

Panhandle, Tx.-Okla. IGBCE04 2.376 -0.103 2.446 2.320 1968

Southern Star, Tx.-Okla.-Kan. IGBCF04 2.367 -0.073 2.410 2.277 511

Texas Eastern M-1 24-inch IGBET04 2.684 0.061 2.685 2.676 22

Upper MidwestAlliance, into interstates IGBDP04 2.691 0.020 2.719 2.675 4720

ANR, ML 7 IGBDQ04 2.825 0.035 2.840 2.821 215

Chicago city-gates IGBDX04 2.691 0.020 2.728 2.666 2893

Chicago-Nicor IGBEX04 2.690 0.041 2.705 2.672 1459

Chicago-NIPSCO IGBFX04 2.700 0.016 2.716 2.674 553

Chicago-Peoples IGBGX04 2.691 0.038 2.705 2.677 878

Consumers Energy city-gate IGBDY04 2.819 0.033 2.839 2.804 2016

Dawn, Ontario IGBCX04 2.845 0.067 2.879 2.831 3317

Emerson, Viking GL IGBCW04 2.606 0.060 2.661 2.556 587

Mich Con city-gate IGBDZ04 2.814 0.043 2.852 2.796 2583

Northern Border, Ventura TP IGBGH04 2.639 0.052 2.674 2.616 968

Northern, demarc IGBDV04 2.635 0.044 2.665 2.623 1440

Northern, Ventura IGBDU04 2.640 0.041 2.664 2.614 1478

REX, Zone 3 delivered IGBRO04 2.661 0.053 2.685 2.636 4034

east texasAgua Dulce Hub IGBAV04 2.855 0.005 2.855 2.855 74

Carthage Hub IGBAF04 2.664 0.035 2.685 2.653 618

Florida Gas, zone 1 IGBAW04 2.746 0.046 2.752 2.721 197

Houston Ship Channel IGBAP04 2.841 -0.025 2.852 2.832 521

Katy IGBAQ04 2.844 -0.017 2.865 2.827 3945

NGPL, STX IGBAZ04 2.743 -0.062 2.759 2.717 154

NGPL, Texok zone IGBAL04 2.653 0.039 2.675 2.639 3156

Tennessee, zone 0 IGBBA04 2.669 0.048 2.681 2.656 1626

Texas Eastern, ETX IGBAN04 2.660 0.062 2.677 2.653 93

Texas Eastern, STX IGBBB04 2.821 -0.002 2.845 2.798 1260

Transco, zone 1 IGBBC04 2.721 0.013 2.733 2.701 196

Transco, zone 2 IGBBU04 2.744 0.035 2.748 2.728 74

louisiana/southeastANR, La. IGBBF04 2.684 0.033 2.688 2.669 801

Columbia Gulf, La. IGBBG04 2.726 0.065 2.748 2.712 200

Columbia Gulf, mainline IGBBH04 2.681 0.052 2.703 2.660 3790

Florida city-gates IGBED04 3.110 -0.010 3.150 3.100 180

Florida Gas, zone 2 IGBBJ04 2.740 0.041 2.750 2.734 557

Florida Gas, zone 3 IGBBK04 2.809 0.049 2.830 2.766 2786

Henry Hub IGBBL04 2.786 0.035 2.808 2.766 1554

Southern Natural, La. IGBBO04 2.750 0.041 2.769 2.733 3049

Tennessee, zone 1 IGBHI04 2.697 0.042 2.724 2.674 1606

Tennessee, La., 500 Leg IGBBP04 2.735 0.037 2.747 2.717 1711

Tennessee, La., 800 Leg IGBBQ04 2.715 0.031 2.733 2.690 2305

Texas Eastern, ELA IGBBS04 2.696 0.030 2.729 2.664 820

Texas Eastern, M-1 30-inch (Kosi) IGBDI04 2.711 0.073 2.722 2.706 46

Texas Eastern, WLA IGBBR04 2.749 0.060 2.765 2.738 1226

Texas Gas, zone 1 IGBAO04 2.679 0.049 2.696 2.652 3345

Texas Gas, zone SL IGBBT04 2.694 0.045 2.694 2.694 0

Transco, zone 3 IGBBV04 2.757 0.044 2.783 2.735 2960

Transco, zone 4 IGBDJ04 2.779 0.044 2.804 2.744 5585

Trunkline, ELA IGBBX04 2.699 0.055 2.706 2.694 163

Trunkline, WLA IGBBW04 2.676 -0.049 2.676 2.676 15

Trunkline, Zone 1A IGBGF04 2.671 0.042 2.690 2.659 780

Rockies/NorthwestCheyenne Hub IGBCO04 2.441 -0.018 2.481 2.413 2328

CIG, Rocky Mountains IGBCK04 2.400 -0.032 2.444 2.369 604

GTN, Kingsgate IGBCY04 2.383 0.729 2.418 2.350 404

Kern River, Opal plant IGBCL04 2.508 0.011 2.541 2.447 5140

Northwest, Can. bdr. (Sumas) IGBCT04 2.316 0.127 2.367 2.246 976

Northwest, s. of Green River IGBCQ04 2.444 0.016 2.462 2.416 809

Northwest, Wyo. Pool IGBCP04 2.488 0.017 2.536 2.403 3331

PG&E, Malin IGBDO04 2.563 0.033 2.607 2.517 2445

Questar, Rocky Mountains IGBCN04 2.419 -0.028 2.426 2.406 129

Stanfield, Ore. IGBCM04 2.443 -0.009 2.470 2.409 881

TCPL Alberta, AECO-C* IGBCU04 1.073 -0.202 1.249 0.964 4757

Westcoast, station 2* IGBCZ04 1.360 0.002 1.443 1.264 1412

White River Hub IGBGL04 2.447 -0.004 2.459 2.439 661

southwestEl Paso, Bondad IGBCG04 2.421 -0.047 2.440 2.386 607

El Paso, Permian Basin IGBAB04 2.055 0.054 2.249 1.934 6698

El Paso, San Juan Basin IGBCH04 2.419 -0.095 2.499 2.366 1723

El Paso, South Mainline IGBFR04 4.455 -3.002 4.729 4.207 497

Kern River, delivered IGBES04 4.909 -4.323 5.414 4.479 2079

PG&E city-gate IGBEB04 3.176 0.094 3.204 3.146 4257

PG&E, South IGBDM04 2.568 -0.019 2.647 2.489 505

SoCal Gas IGBDL04 4.149 -1.951 5.164 2.494 2861

SoCal Gas, city-gate IGBGG04 9.436 -9.262 10.266 8.621 1905

Transwestern, Permian Basin IGBAE04 2.088 0.093 2.144 2.036 552

Transwestern, San Juan IGBGK04 2.432 -0.054 2.459 2.416 608

Waha IGBAD04 2.021 0.058 2.099 1.950 4754

*NOTE: Price in C$ per gj

17



Weekly Gas Market Data

BaSiS DiFFerential For week enDeD auG 03 Henry el Paso agua transco katy kern, Panhandle chicago col. Gas Socal Hub Permian Dulce Zone 3 opal tx.-ok. city-gates appa. GasWeekly WACOG 2.79 2.06 2.86 2.76 2.84 2.51 2.38 2.69 2.63 4.15Henry Hub 0.73 -0.07 0.03 -0.05 0.28 0.41 0.10 0.16 -1.36El Paso, Permian -0.73 -0.80 -0.70 -0.78 -0.45 -0.32 -0.63 -0.57 -2.09Agua Dulce 0.07 0.80 0.10 0.02 0.35 0.48 0.17 0.23 -1.29Transco Zone 3 -0.03 0.70 -0.10 -0.08 0.25 0.38 0.07 0.13 -1.39Katy 0.05 0.78 -0.02 0.08 0.33 0.46 0.15 0.21 -1.31Kern, Opal -0.28 0.45 -0.35 -0.25 -0.33 0.13 -0.18 -0.12 -1.64Panhandle, Tx.-Ok. -0.41 0.32 -0.48 -0.38 -0.46 -0.13 -0.31 -0.25 -1.77Chicago city-gates -0.10 0.63 -0.17 -0.07 -0.15 0.18 0.31 0.06 -1.46Col. Gas Appa. -0.16 0.57 -0.23 -0.13 -0.21 0.12 0.25 -0.06 -1.52SoCal Gas 1.36 2.09 1.29 1.39 1.31 1.64 1.77 1.46 1.52NYMEX Basis -0.063 -0.793 0.007 -0.093 -0.013 -0.343 -0.473 -0.163 -0.223 1.297

NYMEX Basis is the NYMEX Henry Hub/cash basis differential calculated from the near-month settlement of $2.853.

Bentek canaDian GaS StoraGe Data For week enDeD auG 3(in Bcf) east west total

Working gas 162.74 389.26 552.00

Weekly Change 13.70 13.47 27.16

% of capacity 61.88% 69.14% 66.83%

Working Gas Aug 4, 2017 183.58 475.33 658.91

HeNRy HUB FUtURes aNd stRiPs

07/30 07/31 08/01 08/02 08/03 Mon tue wed thu FriSep-018 2.797 2.782 2.758 2.816 2.853Oct-018 2.817 2.798 2.770 2.822 2.862Nov-018 2.866 2.843 2.811 2.857 2.898Dec-018 2.974 2.952 2.919 2.958 2.998Jan-019 3.057 3.038 3.005 3.043 3.082Feb-019 3.025 3.005 2.971 3.006 3.045Mar-019 2.925 2.905 2.868 2.903 2.941Apr-019 2.635 2.616 2.582 2.605 2.626May-019 2.608 2.589 2.556 2.578 2.595Jun-019 2.639 2.619 2.586 2.608 2.624Jul-019 2.671 2.651 2.619 2.642 2.657Aug-019 2.677 2.658 2.626 2.648 2.6623/strip 2.827 2.808 2.780 2.832 2.8716/strip 2.923 2.903 2.872 2.917 2.9569/strip 2.856 2.836 2.804 2.843 2.87812/strip 2.808 2.788 2.756 2.791 2.820

Baker HuGHeS riG count

Week ending 03-Aug-18 27-Jul-18 Chg. 28-Jul-17

Total US rigs 1,044 1,048 -4 958

Total US gas rigs 183 186 -3 192

Total Canadian rigs 223 223 +0 220

cFtc commitment oF traDerS rePort For week enDeD July 31 long short net position net position change in % market % market positions positions last week overall positions share share last weekProducers/merchants/processors/users 214,542 189,921 53.04% long 54.23% long 0.05% 27.61% 26.8%Swap dealers 196,183 117,186 62.6% long 60.99% long -3.08% 21.39% 21.44%Money managers 237,633 194,212 55.03% long 52.8% long -0.59% 29.48% 28.8%Other reportables 72,666 242,514 76.94% short 72.01% short -8.99% 21.52% 22.96%

Source: CFTC. For detailed information regarding the categories of traders listed in this table, please see the CFTCs explanatory note at:www.cftc.gov/ucm/groups/public/@commitmentsoftraders/documents/file/disaggregatedcotexplanatorynot.pdf

CANADIAN STORAGE INVENTORIES

Source: S&P Global Platts Analytics

300

400

500

600

700

800

900(Bcf)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

3-Year average20182017

($/MMBtu)

2.70

2.75

2.80

2.85

2.90

03-Aug30-Jul24-Jul18-Jul12-Jul06-Jul

3-month 12-month Prompt month

18



Final Daily GaS inDiceS – ice locationS ($/MMBtu)Trade date: 03-Aug

Flow date(s): 04-Aug—06 Daily Absolute Absolute Common Common

Location Symbol Index Change Low High Low High Volume Deals

Northeast

ICE Algonquin CG (Excl. J and G Lateral deliveries) JAAAA21 3.175 +0.225 2.900 3.300 3.075 3.275 114 26

ICE Algonquin Citygates (Excl. J Lateral deliveries) JAAAB21 — — — — — — — —

ICE Algonquin, Millennium-Ramapo receipts JAAHF00 — — — — — — — —

ICE Algonquin, TGP-Mahwah receipts JAAHG00 — — — — — — — —

ICE Dominion Energy, Cove Point, on system delivery JAAHM21 — — — — — — — —

ICE Iroquois, zone 1 (delivered excl. Waddington) JAABS21 — — — — — — — —

ICE Iroquois, zone 2 (non-Hunts Point/Eastchester Lateral) JAABT21 3.145 +0.165 3.100 3.200 3.120 3.170 76 26

ICE Iroquois, zone 2 Hunts Point/Eastchester Lateral JAABU21 — — — — — — — —

ICE Maritimes, Hubline and Beverly Salem JAACB21 — — — — — — — —

ICE Maritimes and Northeast Pipeline US (buyer’s choice delivered) JAACC21 — — — — — — — —

ICE PNGTS (buyer’s choice delivered) JAADH21 — — — — — — — —

ICE Stagecoach Marcellus Hub JAAEN21 — — — — — — — —

ICE Tennessee, zone 5, 200 Line, delivered downstream of station 245 JAAEU21 3.005 +0.130 2.950 3.050 2.980 3.030 22 6

ICE Texas Eastern, Manhattan Lateral (delivered) JAAEW21 — — — — — — — —

ICE Transco, Cove Point, Pleasant Valley Interconnect JAAAY21 — — — — — — — —

ICE Transco, zone 6 (non-NY north mainline) JAAEZ21 — — — — — — — —

ICE Transco, zone 6 station 210 Pool JAAFA21 2.975 +0.125 2.930 3.010 2.955 2.995 255 64

appalachia

ICE Clarington Tennessee JAAFI21 — — — — — — — —

ICE Columbia Gas, A04 Pool JAAAU21 — — — — — — — —

ICE Columbia Gas, A06 Pool JAAAV21 — — — — — — — —

ICE Columbia Gas, Segmentation Pool JAAAW21 — — — — — — — —

ICE Millennium Pipeline (buyers’ choice delivered) JAAHA21 — — — — — — — —

ICE Tennessee, zone 4, station 219 Pool JAAET21 2.710 +0.065 2.690 2.740 2.700 2.725 131 38

ICE Texas Eastern, M2 Zone (delivered) JAAEV21 — — — — — — — —

Midcontinent

ICE Bennington, Oklahoma (buyers’ choice) JAAHK21 — — — — — — — —

ICE Bennington, Oklahoma JAAAM21 — — — — — — — —

ICE Enable Gas, Flex Pool only JAABE21 2.640 -0.040 2.640 2.640 2.640 2.640 30 6

ICE Enable Gas, North Pool only JAABF21 — — — — — — — —

ICE Enable Gas, West (W1 or W2 as mutually agreed) JAABI21 — — — — — — — —

ICE Enable Gas, West Pool JAABJ21 — — — — — — — —

ICE NGPL, Gulf Coast Mainline Pool JAACI21 2.735 +0.115 2.710 2.750 2.725 2.745 50 6

ICE NGPL, Mid-Continent Storage PIN JAACO21 — — — — — — — —

ICE Northern Natural, Mid 13 - 16A Pool JAACW21 — — — — — — — —

ICE Northern Natural, Mid 1-7 Pool JAACX21 — — — — — — — —

ICE Northern Natural, Mid 8 -12 Pool JAACY21 — — — — — — — —

ICE Salt Plains Storage (buyers’ choice) JAADV21 — — — — — — — —

ICE Salt Plains Storage (in-ground transfer only) JAADW21 — — — — — — — —

Upper Midwest

ICE Alliance, Chicago Exchange Hub JAAAC21 2.835 +0.090 2.815 2.880 2.820 2.850 424 78

ICE Alliance, ANR Interconnect JAAAD21 — — — — — — — —

ICE Alliance, Midwestern Interconnect JAAFX21 — — — — — — — —

ICE Alliance, NGPL Interconnect JAAAF21 — — — — — — — —

ICE Alliance, Nicor Interconnect JAAAG21 — — — — — — — —

ICE Alliance, Vector Interconnect JAAAH21 — — — — — — — —

ICE ANR, Joliet Hub CDP JAAAK21 — — — — — — — —

ICE Bluewater Gas Storage JAAAN21 — — — — — — — —

ICE Great Lakes Gas, St. Clair JAABM21 — — — — — — — —

ICE Guardian, Guardian Hub JAABN21 — — — — — — — —

ICE NGPL, Amarillo Pooling PIN JAACG21 2.750 +0.055 2.730 2.770 2.740 2.760 119 24

ICE NGPL, Amarillo Storage PIN JAACH21 — — — — — — — —

ICE NGPL, Iowa-Illinios Pooling PIN JAACJ21 — — — — — — — —

ICE NGPL, Iowa-Illinois Storage PIN JAACK21 — — — — — — — —

ICE NGPL, Mid-American Citygate JAACN21 — — — — — — — —

ICE Northern Border, Harper Transfer Point JAACS21 — — — — — — — —

ICE Northern Border, Nicor Interconnect JAACT21 — — — — — — — —

ICE Northern Border, Vector Interconnect JAACU21 2.820 +0.075 2.800 2.840 2.810 2.830 233 38

ICE Northern Border, Will County JAACV21 2.840 +0.100 2.825 2.870 2.830 2.850 124 14

19



Final Daily Gas inDices – ice locations ($/MMBtu)Trade date: 03-Aug



Upper Midwest

ICE REX (East), delivered into ANR JAADK21 2.770 +0.065 2.755 2.800 2.760 2.780 310 64

ICE REX (East), delivered into Lebanon Hub JAAHC21 — — — — — — — —

ICE REX (East), delivered into Midwestern Gas JAADL21 2.770 +0.060 2.765 2.780 2.765 2.775 94 14

ICE REX (East), delivered into NGPL JAADM21 2.775 +0.060 2.765 2.810 2.765 2.785 310 36

ICE REX (East), delivered into Panhandle JAADN21 2.770 +0.075 2.770 2.770 2.770 2.770 60 14

ICE REX (East), delivered into Trunkline JAADO21 — — — — — — — —

ICE REX (West), delivered into ANR JAADP21 — — — — — — — —

ICE REX (West), delivered into Northern Natural JAADQ21 2.795 +0.095 2.795 2.795 2.795 2.795 20 2

ICE REX (West), delivered into Panhandle JAADR21 — — — — — — — —

ICE Rover, delivered into ANR JAAHI21 2.775 0.175 2.775 2.775 2.775 2.775 6 2

ICE Rover, delivered into Panhandle JAAHJ21 — — — — — — — —

east texas

ICE Agua Dulce Hub JAAGI21 — — — — — — — —

ICE Atmos, zone 3, receipts JAAAL21 2.710 +0.035 2.690 2.760 2.695 2.730 236 44

ICE Carthage Hub Tailgate JAAAQ21 2.745 +0.055 2.730 2.750 2.740 2.750 93 24

ICE ETC, Cleburne JAAHH00 — — — — — — — —

ICE ETC, Maypearl JAABK21 2.760 +0.040 2.700 2.760 2.745 2.760 81 12

ICE Golden Triangle Storage & Hub JAABL21 — — — — — — — —

ICE Gulf South, Pool Area #16 JAABP21 2.750 +0.065 2.730 2.775 2.740 2.760 90 18

ICE HPL, East Texas Pool JAABR21 — — — — — — — —

ICE Katy, ENSTOR Pool (excl. Kinder Morgan Texas) JAABW21 2.860 +0.020 2.855 2.870 2.855 2.865 58 10

ICE Katy, Lonestar (warranted as Intrastate) JAABX21 — — — — — — — —

ICE Katy, Lonestar Interstate JAABY21 — — — — — — — —

ICE Katy, Oasis Pipeline JAABZ21 2.880 +0.040 2.850 2.920 2.865 2.900 230 34

ICE Moss Bluff Interconnect (buyers’ choice delivered) JAACD21 2.900 +0.020 2.895 2.900 2.900 2.900 80 8

ICE Moss Bluff Storage (in-ground transfers only) JAACE21 — — — — — — — —

ICE NGPL, TXOK East Pool JAACP21 2.735 +0.050 2.725 2.785 2.725 2.750 510 86

ICE NGPL, TXOK West Pool JAACQ21 — — — — — — — —

ICE NorTex, Tolar Hub JAACR21 2.740 +0.055 2.720 2.755 2.730 2.750 206 30

ICE Tennessee, zone 0 North JAAEP21 — — — — — — — —

ICE Tennessee, zone 0 South JAAEQ21 2.755 +0.075 2.745 2.800 2.745 2.770 109 28

ICE Tres Palacios Hub - Injection JAAFE21 2.785 +0.075 2.780 2.795 2.780 2.790 57 8

ICE Tres Palacios Hub - Withdrawal JAAFF21 2.865 +0.055 2.850 2.890 2.855 2.875 124 26

louisiana/southeast

ICE ANR, SE Transmission Pool JAAAI21 2.785 +0.070 2.780 2.830 2.780 2.800 328 36

ICE ANR, SE Gathering Pool JAAAJ21 — — — — — — — —

ICE Bobcat Interconnect (buyers’ choice delivered) JAAAO21 — — — — — — — —

ICE Bobcat Storage (in-ground transfer only) JAAAP21 — — — — — — — —

ICE Egan Interconnect (buyers’ choice delivered) JAAAZ21 — — — — — — — —

ICE Egan Storage (in-ground transfer only) JAABA21 — — — — — — — —

ICE Enable Gas, Perryville Hub JAABG21 — — — — — — — —

ICE Enable Gas, South Pool only JAABH21 — — — — — — — —

ICE Gulf South, Perryville Exchange Point JAABO21 — — — — — — — —

ICE Jefferson Island Storage and Hub JAABV21 — — — — — — — —

ICE MS Hub Storage JAACF21 — — — — — — — —

ICE NGPL, Louisiana Pooling PIN JAACL21 — — — — — — — —

ICE NGPL, Louisiana Storage PIN JAACM21 — — — — — — — —

ICE Pine Prairie Hub JAADF21 2.810 +0.065 2.800 2.840 2.800 2.820 697 108

ICE Sonat, Zone 0 JAAHE21 — — — — — — — —

ICE Sonat, Zone 0 South Louisiana Pool JAAEJ21 2.815 +0.070 2.800 2.845 2.805 2.825 397 60

ICE Sonat, Zone 1 North Pool JAAEK21 — — — — — — — —

ICE Southern Pines Hub JAAEM21 — — — — — — — —

ICE Stingray, pool delivery JAAEO21 — — — — — — — —

ICE Tennessee, zone 1 100 Leg Pool JAAER21 2.780 +0.055 2.770 2.790 2.775 2.785 70 18

ICE Tennessee, zone 1, Station 87 Pool JAAES21 2.795 +0.040 2.790 2.800 2.795 2.800 38 10

ICE Texas Gas, Mainline Pool JAAEX21 2.760 +0.070 2.750 2.780 2.755 2.770 935 124

ICE Texas Gas, North Louisiana Pool JAAEY21 — — — — — — — —

Rockies/Northwest

20



Final Daily Gas inDices – ice locations ($/MMBtu)Trade date: 03-Aug



Rockies/Northwest

ICE CIG, Mainline (sellers’ choice, non-lateral) JAAFY21 2.445 -0.015 2.400 2.490 2.425 2.470 85 16

ICE CIG, Mainline Pool JAAFZ21 — — — — — — — —

ICE CIG, Mainline South (sellers’ choice) JAAAT21 — — — — — — — —

ICE Kern River, on system receipt JAACA21 2.585 +0.035 2.570 2.660 2.570 2.610 382 68

ICE Opal Plant Tailgate JAADB21 2.600 +0.030 2.560 2.660 2.575 2.625 428 70

ICE PG&E, Onyx Hill JAAHB21 — — — — — — — —

ICE Pioneer Plant Tailgate JAADG21 2.600 +0.035 2.600 2.600 2.600 2.600 54 6

ICE Questar, North Pool JAADI21 2.500 +0.030 2.500 2.500 2.500 2.500 5 4

ICE Questar, South Pool JAADJ21 — — — — — — — —

ICE Ruby, Onyx Hill JAADS21 2.700 +0.080 2.700 2.700 2.700 2.700 10 2

ICE Ruby, Receipt Pool JAADT21 — — — — — — — —

ICE Ryckman Creek Gas Storage JAADU21 — — — — — — — —

ICE WIC, Pool JAAFH21 — — — — — — — —

southwest

ICE El Paso, Keystone Pool JAABB21 2.150 -0.145 2.070 2.200 2.120 2.185 482 80

ICE El Paso, Plains Pool JAABC21 2.285 -0.100 2.250 2.330 2.265 2.305 268 36

ICE El Paso, Waha Pool JAABD21 2.155 -0.145 2.090 2.200 2.130 2.185 452 62

ICE Oasis, Waha Pool JAACZ21 2.000 -0.330 1.995 2.000 2.000 2.000 34 4

ICE ONEOK, Westex Pool JAADA21 2.055 -0.235 2.000 2.150 2.020 2.095 298 56

ICE PG&E, Daggett JAADC21 — — — — — — — —

ICE PG&E, Kern River Station JAADD21 — — — — — — — —

ICE PG&E, Topock JAADE21 2.495 -0.205 2.400 2.600 2.445 2.545 58 10

ICE Socal, Blythe JAADX21 — — — — — — — —

ICE Socal, Ehrenberg (delivered) JAADY21 5.210 -0.100 4.250 5.750 4.835 5.585 58 16

ICE Socal, Firm Storage only (Citygate) JAADZ21 — — — — — — — —

ICE Socal, In-ground transfer only (Citygate) JAAEA21 — — — — — — — —

ICE Socal, Interruptible Storage only (Citygate) JAAEB21 — — — — — — — —

ICE Socal, Kern River Station JAAEC21 3.895 -0.955 3.750 5.000 3.750 4.210 61 14

ICE Socal, Kramer Junction JAAED21 5.150 -0.225 5.150 5.150 5.150 5.150 73 14

ICE Socal, Needles JAAEE21 2.600 -0.095 2.600 2.600 2.600 2.600 50 8

ICE Socal, sellers’ choice delivered incl. CA production JAAEF21 — — — — — — — —

ICE Socal, Topock JAAHD21 — — — — — — — —

ICE Socal, Topock, El Paso JAAEG21 — — — — — — — —

ICE Socal, Topock, Transwestern JAAEH21 — — — — — — — —

ICE Socal, Wheeler Ridge JAAEI21 — — — — — — — —

ICE Transwestern, Central Pool JAAFB21 2.160 -0.250 2.100 2.250 2.125 2.200 34 8

ICE Transwestern, Panhandle Pool JAAFC21 — — — — — — — —

ICE Transwestern, West Texas Pool JAAFD21 2.145 -0.255 2.100 2.200 2.120 2.170 43 12

ICE Waha Hub, West Texas (buyer’s choice delivered) JAAFG21 2.215 -0.185 2.150 2.250 2.190 2.240 132 20

ice GaS Daily aSSeSSment rationaleThe daily indices for ICE locations are a volume weighted average of ICE Exchange trades submitted to Platts by ICE. No other sources of data are used. Platts editors do not screen the

data for outliers or assess prices if there are no transactions. Questions may be directed to Ryan Ouwerkerk at 713-655-2202 or [email protected]

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