Reporting on the Natural Gas marketplace since 1981 WEDNESDAY, NOVEMBER 4, 2020 - VOL. 28, NO. 84 MARKETS REPORT LIQUEFIED NATURAL GAS December Natural Gas Futures Berkshire Hathaway Taking Over Stumble Amid Higher Temperatures, Cove Point LNG from Dominion Election Uncertainty An affiliate of Warren Buffett’s Berkshire Hathaway Inc. on Natural gas futures tumbled a second consecutive day as weather Monday became the operator of the Cove Point liquefied natural models leaned increasingly bearish for much of November, offsetting gas (LNG) export terminal in Lusby, MD, as part of a $9.7 billion continued liquefied natural gas (LNG) strength and anticipation for acquisition from Dominion Energy Inc. the first withdrawal from storage of the The sale of the majority of the season. Election Day uncertainty may assets in the transaction announced in also have sidelined some traders. July were completed Monday, Rich- The December Nymex contract mond, VA-based Dominion manage- fell 18.5 cents day/day and settled ment said. at $3.059/MMBtu on Tuesday. The Berkshire Hathaway Energy prompt month lost 11.0 cents a day ear- acquired 5,500 miles of interstate gas lier. January shed 18.0 cents to $3.195. transmission pipelines and about 775 Spot gas prices also declined as Bcf of storage, as well as a 25% stake comfortable temperatures settled in and operating interest in Cove Point. across most of the country. NGI’s Spot The transaction value currently is esti- Gas National Avg. declined 20.0 cents mated at $8 billion, comprising about to $2.625. $2.7 billion in cash and about $5.3 bil- In fact, the already …cont' pg. 3 lion in debt transfer. …cont' pg. 10 LIQUEFIED NATURAL GAS LIQUEFIED NATURAL GAS France’s Engie Low Commodity Prices Scraps Proposed Rio Again Weigh on Total’s Grande LNG Deal LNG Operations Amid Environmental Total SE returned to profitabil- Concerns ity in the third quarter as the global economy recovered from lows brought French energy company Engie SA on by the Covid-19 pandemic, but the has decided to end negotiations to buy company continues to face low global liquefied natural gas (LNG) from the commodity prices and uncertainty as proposed Rio Grande LNG facility in Previous 5 Oct Oct Oct Nov Nov Days Table 28 29 30 02 03 the year comes to a close. Texas because of French government December Futures 3.291 3.301 3.354 3.244 3.059 The French supermajor took an concerns over hydraulic fracturing Henry Hub 3.060 3.000 3.040 2.995 2.835 $8.1 billion impairment in the second (fracking). quarter when commodity prices de- Chicago 3.035 2.920 2.950 2.845 2.640 Bloomberg reported Tuesday clined precipitously as the company that a spokeswoman at Houston-based AGT Citygate 4.835 6.535 3.610 3.870 2.150 confronted what CEO Patrick Pouy- NextDecade Corp., which owns the Opal 3.320 3.135 2.955 3.180 3.355 anne called “exceptional …cont' pg. 11 Rio Grande LNG project, said Engie SoCal Bdr. Avg. 3.350 3.175 3.005 3.670 4.350 decided to no longer pursue commer- NOVA 3.150 3.185 3.185 3.200 2.965 cial discussions. NextDecade declined to comment More Detailed Market Prices on Pages 2-4. to NGI about the matter. Engie’s board last month decided INSIDE THIS ISSUE to further investigate the environmental Range Remaining Disciplined Equinor Sets Net-Zero Pinnacle West’s Arizona Despite Improving implications of the potential $7 bil- Emissions Goal, Sees Utility Dodges Summer Heat Natural Gas Outlook lion, 20-year contract before deciding Writedowns in E&P on Low Issues with Mix of Fuels, Commodity Prices . 6 Conservation . 9 whether to fund it. The …cont' pg. 10 Visit: natgasintel.com NATGASINTEL.COM | @NGINEWS | © COPYRIGHT INTELLIGENCE PRESS 2020 | FOR A FREE TRIAL VISIT NATGASINTEL.COM 1 NGI’s Daily Gas Price Index Wednesday, November 4, 2020 CASH MARKET PRICES Trade Date: Nov 03; Flow Date(s): Nov 04 Trade Date: Nov 03; Flow Date(s): Nov 04 RANGE AVG CHG VOL DEALS RANGE AVG CHG VOL DEALS South Texas REX into Trunk - Douglas 2.600-2.600 2.600 -0.200 2 2 Agua Dulce 2.885-2.885 2.885 -0.015 18 1 St. Clair -- -- -- -- -- Florida Gas Zone 1 -- -- -- -- -- Midwest Regional Avg. 2.500-2.870 2.620 -0.200 5,732 1,000 NGPL S. TX -- -- -- -- -- Midcontinent Tennessee Zone 0 South 2.765-2.820 2.795 -0.165 133 20 ANR SW 2.610-2.650 2.620 -0.185 257 34 Texas Eastern S. TX 2.810-2.840 2.825 -0.155 212 28 El Paso Anadarko 2.470-2.525 2.485 0.025 54 9 Transco Zone 1 2.800-2.850 2.820 -0.155 20 6 Enable East 2.500-2.590 2.535 -0.140 99 22 Tres Palacios 2.800-2.930 2.885 -0.170 391 59 NGPL Midcontinent 2.540-2.590 2.565 -0.205 382 58 S. TX Regional Avg. 2.765-2.930 2.840 -0.135 773 114 Northern Border Ventura 2.565-2.610 2.595 -0.155 249 38 East Texas Northern Natural Demarc 2.550-2.635 2.620 -0.140 253 44 Atmos Zone 3 2.480-2.550 2.505 -0.135 34 12 Northern Natural Gas 8-12 -- -- -- -- -- Carthage 2.585-2.690 2.625 -0.140 287 39 Northern Natural Gas 13-16A -- -- -- -- -- Golden Triangle Storage 2.850-2.850 2.850 -- 30 4 Northern Natural Ventura 2.555-2.620 2.595 -0.125 580 65 Houston Ship Channel 2.760-2.830 2.805 -0.165 44 10 OGT 2.500-2.600 2.545 -0.170 102 28 HPL - East Texas Pool -- -- -- -- -- Panhandle Eastern 2.330-2.500 2.445 -0.200 383 67 Katy 2.720-2.830 2.780 -0.180 282 66 Southern Star 2.540-2.570 2.555 -0.225 55 8 Maypearl -- -- -- -- -- Transwestern Panhandle Pool -- -- -- -- -- Moss Bluff 2.880-2.940 2.905 -0.145 223 21 Midcontinent Regional Avg. 2.330-2.650 2.555 -0.155 2,410 373 NGPL TexOk 2.500-2.660 2.585 -0.200 945 157 North Louisiana/Arkansas Tennessee Zone 0 North 2.540-2.650 2.635 -0.135 129 20 Enable South -- -- -- -- -- Texas Eastern E. TX 2.550-2.600 2.575 -0.115 20 6 NGPL Gulf Coast Mainline -- -- -- -- -- Tolar Hub 2.490-2.560 2.505 -0.155 185 22 Perryville 2.575-2.575 2.575 -0.195 10 1 Transco Zone 2 2.700-2.700 2.700 -- 10 4 Texas Eastern, M1, 24 2.550-2.550 2.550 -0.200 13 4 E. TX Regional Avg. 2.480-2.940 2.680 -0.130 2,187 361 Texas Gas Zone 1 2.570-2.680 2.610 -0.165 283 52 West Texas/SE New Mexico Trunkline Zone 1A 2.580-2.635 2.590 -0.215 178 26 El Paso Permian 2.250-2.550 2.385 0.800 450 112 N. LA Regional Avg. 2.550-2.680 2.580 -0.195 483 83 El Paso - Keystone Pool 2.250-2.450 2.370 0.760 270 68 South Louisiana El Paso - Plains Pool 2.500-2.550 2.505 0.105 31 8 ANR SE 2.750-2.755 2.750 -0.220 65 12 El Paso - Waha Pool 2.250-2.480 2.385 0.985 150 36 Bobcat Storage -- -- -- -- -- Northern Natural Gas 1-7 -- -- -- -- -- Columbia Gulf Mainline 2.500-2.640 2.575 -0.215 200 32 Oneok WesTex 2.300-2.450 2.390 0.545 82 16 Columbia Gulf onshore 2.670-2.740 2.740 -0.175 217 39 Transwestern 2.300-2.460 2.405 0.255 27 10 Egan Hub 2.780-2.790 2.785 -- 21 2 Transwestern - Central -- -- -- -- -- Florida Gas Zone 2 -- -- -- -- -- Transwestern - W. TX 2.300-2.460 2.405 0.255 27 10 Henry Hub 2.790-2.860 2.835 -0.160 198 36 Waha 2.250-2.500 2.415 0.485 459 101 Pine Prairie 2.770-2.790 2.785 -0.150 293 36 W. TX/SE NM Regional Avg. 2.250-2.550 2.410 0.525 786 187 Southern Natural 2.700-2.760 2.740 -0.180 427 96 Midwest Tennessee Line 500 2.700-2.745 2.730 -0.175 181 36 Alliance 2.610-2.645 2.635 -0.200 617 102 Tennessee Line 800 2.730-2.750 2.740 -0.140 195 34 ANR ML7 -- -- -- -- -- Texas Eastern E. LA 2.735-2.770 2.760 -0.165 219 30 Bluewater Hub -- -- -- -- -- Texas Eastern W. LA 2.770-2.805 2.785 -0.175 448 54 Chicago Citygate 2.610-2.660 2.640 -0.205 371 73 Texas Gas Zone SL -- -- -- -- -- Chicago - Nicor Gas 2.610-2.650 2.635 -0.205 127 25 Transco Zone 3 2.720-2.765 2.755 -0.150 164 44 Chicago - NIPSCO 2.620-2.655 2.640 -0.205 179 32 Trunkline E. LA 2.730-2.760 2.760 -0.160 21 3 Chicago - North Shore -- -- -- -- -- Trunkline W. LA -- -- -- -- -- Chicago - Peoples 2.610-2.660 2.640 -0.210 66 16 S. LA Regional Avg. 2.500-2.860 2.750 -0.170 2,646 454 Consumers Energy 2.620-2.690 2.660 -0.210 248 45 Southeast Dawn 2.560-2.850 2.670 -0.190 1,933 321 Dominion Energy Cove Point 1.700-1.750 1.745 -0.555 229 14 Defiance 2.540-2.595 2.570 -0.215 168 40 FGT Citygate 2.885-3.050 2.970* -- -- -- Rover-ANR 2.540-2.595 2.565 -0.215 128 30 Florida Gas Zone 3 2.780-2.920 2.840 -0.110 209 32 Rover-Panhandle 2.550-2.585 2.575 -0.215 40 10 Southern Pines -- -- -- -- -- Emerson 2.615-2.650 2.630 -0.195 291 64 Tenn Zone 1 100L 2.570-2.650 2.595 -0.205 225 44 Joliet 2.610-2.645 2.635 -0.200 647 106 Tenn Zone 1 non-St.