AGA SEES AMPLE GAS THIS WINTER

The American Gas Association says U.S. gas supply will be more than adequate this winter. However, AGA's gas supply committee added that transportation bottlenecks or sharp swings in demand could lead to price volatility on the spot market. AGA said peak monthly deliverability will be sufficient even if January 1991 is the coldest month in 50 years. In preparing the report, the committee surveyed 69 local distribution companies (LDCs), 23 transmission lines, and producers that account for

Oct. 1, 1990

2 min read

The American Gas Association says U.S. gas supply will be more than adequate this winter.

However, AGA's gas supply committee added that transportation bottlenecks or sharp swings in demand could lead to price volatility on the spot market.

AGA said peak monthly deliverability will be sufficient even if January 1991 is the coldest month in 50 years.

In preparing the report, the committee surveyed 69 local distribution companies (LDCs), 23 transmission lines, and producers that account for one sixth of the nation's gas supplies.

HIGHER DELIVERABILITY

AGA said gas from storage, spot market sales, and long term contracts will supply 44% of LDC requirements in January 1991, while pipeline system supply will provide 56%. In January 1980, pipeline system supply represented 83% of the market.

AGA said pipelines can supply 2.452 bcf in January 1991, compared with record maximum consumption of 2.426 bcf in January 1989.

Maximum sustainable monthly production from conventional, domestic resources next January is conservatively estimated at 1.57 tcf-15 bcf above the December 1989 level and 4 bcf above January 1990 levels. Peak monthly storage withdrawal capability is about the same at 730 bcf.

Potential imports of Canadian gas and liquefied natural gas could be 157 bcf in January 1991, up from a record 149 bcf last December.

The effect of current events in the Middle East is not expected to greatly alter energy supplies for the coming heating season.

AGA said higher oil prices could prompt consumers with dual fuel capability not to switch from gas to fuel oil in the fall, perhaps lowering oil demand 160,000 b/d.