Natural Gas September Supply Falls Less than Expected, Coal to Gas Switching Boosts Demand 12 pages, 13 exhibits, 170 KB Link: http://www.sendspace.com/file/ya4qnk
Excerpt: September Production Dips, Demand Improves. The Natural Gas Monthly released Monday (11/30) showed that total U.S. dry gas fell sequentially amid Independence Hub downtime and storage-induced shut- ins, while demand improved yr/yr and imports held relatively neutral. Dry gas production fell 2.3% mo/mo and tracked closely with the more widely followed EIA-914 'wet' gas report, which was also released on Monday (see our note Natural Gas - September EIA-914: Onshore Slips 2.2% Mo/Mo on Shut-Ins). This production decline was less than most expected (down 3%+ market view), likely due to more robust base supply trends. On the demand side, total consumption rose 6.7% yr/yr and was led by strong gas-fired power demand amid continued coal-to-gas switching from electric utilities. Likewise, industrial demand posted the first yr/yr increase (+0.6%) since July'08 as a result of easier comps against hurricane-impacted Sept'08 industrial consumption. Meanwhile, LNG imports rose by only 1% yr/yr as strong European demand has been diverting cargoes away from the U.S. and offsetting liquefaction capacity additions this year. Canada imports fell 2% yr/yr.
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