By the OGJ Online Staff
HOUSTON, June 12 -- The monthly average pipeline acquisition price of natural gas on the US Gulf Coast will rise to $4.80/MMbtu in August, slump during the "shoulder month" of September, and peak at $6/MMbtu in December, Purvin & Gertz has forecast.
In the Mid-Continent, gas prices are expected to rise to $4.65/MMbtu in August, dip by about 10¢/MMbtu in September and peak at $5.80/MMbtu in December.
Pipeline acquisition prices for gas in the Rocky Mountain region are expected to be $4.40/MMbtu at the end of the summer and then rise to $5.80/MMbtu in December.
Purvin & Gertz attributed lower gas prices in May to weekly gas storage reports. The American Gas Association reported gas storage levels in the US increased by more than 100 bcf/week for four consecutive weeks compared to typical injection rates of 70-75 bcf/week.
Rising gas production rates contributed to the rapid increase in storage levels, Purvin & Gertz said. Meanwhile, gas consumption by the industrial and the electric utility sectors declined during May, partly due to a shift away from gas to cheaper distillate and residual fuel oils.
Purvin & Gertz said rising capacity of gas-fired electrical power generation facilities could set the stage for higher gas prices beginning this summer.
