Natural Gas Forum 2020

Market expectations for winter 2020-21. With a variety of long-term weather forecasts predicting a cold, near normal and warmer than average winter, season ending storage and price hang in the balance. Walk through baseline expectation of the supply demand balance and highlight how sensitive the market and storage will be to weather. With a decline in production forecast for 2021 and the market tightening, demand will have a major impact on market dynamics over the withdrawal season.

Expectations for Permian natural gas are far from what they were when this year started. Lower crude oil prices and a focus on capital discipline have slashed rig counts by about two-thirds since January and there are few signs of a recovery on the horizon. As a result, just about everyone’s forecast for Permian gas growth is much lower than just a few months ago, with tepid gains through the early 2020s now the industry’s consensus view. However, if you think all this means that Permian gas markets have lost their relevance, think again. Despite the modest production growth anticipated, the basin’s gas flow patterns will soon be thrown into shock as 4 Bcf/d of new outflow capacity to Gulf Coast markets starts up next year, when the Permian Highway and Whistler pipelines begin operation.

Updates on Energy Transfer's projects in progress, as well as perspectives on developing new midstream infrastructure in the current environment.