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MARKETS REPORTNatGas Futures Surge on Forecast Cold, Cash Too; SoCal Spikes in Forwards, Bidweek

Natural gas futures picked up steam Tuesday, climbing by double digits for the second straight day on forecasts for cold temperatures arriving after Dec. 7. Cash markets followed the futures higher, with the bears losing their grip after near-term warmth drove widespread losses the prior two trading days. The NGI National Spot Gas Average climbed 12 cents to $2.81.

The December contract came off the board on a high note Tuesday, set-tling 14.6 cents higher at $3.074 after trading as high as $3.102. December gained more than 26 cents in its final two trading days after settling at $2.813 Friday. The January contract added 11.1 cents Tuesday to settle at $3.128, while February settled 10.8 cents higher at $3.131.

The weather models

LIQUEFIED NATURAL GASNextDecade Considering Two Trains at Rio Grande LNG Project

NextDecade Corp. said it is con-sidering a plan to use two production trains for its proposed liquefied natural gas (LNG) export facility in South Texas, but it still plans to eventually have six trains running at the facility near the Mexican border.

The Woodlands, TX-based com-pany said it could make a final invest-ment decision on its Rio Grande LNG project with as few as two trains, which would have the capacity to export up to 9 million metric tons/year (mmty) of LNG.

NextDecade said the ...cont' pg. 7

...cont' pg. 3

MEXICONew Pemex Chief Appointed as Gonzalez Anaya Promoted to Mexico's Finance Minister

Carlos Trevino on Monday was appointed director-general of Mexico’s state-owned oil and natural gas com-pany Petroleos Mexicanos (Pemex) by President Enrique Pena Nieto.

For Trevino, the appointment was a promotion from his previous post as Pemex corporate chief of administra-tion and services.

Trevino replaced Jose Antonio Gonzalez Anaya, who has spent less than three years as Pemex chief. Both men are long-standing members of the state financial bureaucracy.

In a ceremony at Los Pinos, the Mexican White House, Gonzalez Ana-ya was appointed as finance minister to replace Jose Antonio Meade.

Trevino is seen as a steady hand at the helm for the final

DRILLINGExxonMobil's Hebron Project Ramps Up Offshore Newfoundland

The Hebron project, which at capacity could produce up to 150,000 b/d, has ramped up ahead of schedule offshore Newfoundland and Labrador, ExxonMobil Corp. said Tuesday.

The Hebron field, discovered in 1980, is estimated to contain more than 700 million boe of recoverable resources.

“The successful startup of the Hebron project demonstrates ExxonMobil’s disciplined project management expertise and highlights its ability to execute large-scale energy developments

safely and responsibly in challenging operating conditions,” said Exxon-Mobil Development Co. President Liam Mallon.

ExxonMobil, which operates Hebron, sanctioned the project in 2013. Operations are handled by ExxonMobil Canada Properties, which holds 35.5% equity, and its partners on the project are Chevron

WEDNESDAY, NOVEMBER 29, 2017 - VOL. 25, NO. 100

Bakken Natural Gas Production Outpacing Oil, EIA Says

...cont' pg. 7

...cont' pg. 7

Previous 5 Days Table

Nov 20

Nov 21

Nov 22

Nov 27

Nov 28

Dec Futures 3.047 3.017 2.968 2.928 3.074

Henry Hub 3.05 3.05 2.93 2.82 2.91

Chicago 3.03 3.05 2.83 2.70 2.85

AGT Citygate 3.06 3.25 3.26 3.04 3.14

Opal 2.78 2.72 2.48 2.61 2.62

SoCal Bdr. Avg. 3.00 2.86 2.63 2.73 2.73

NOVA 1.96 1.98 1.84 1.90 2.03More Detailed Market Prices on Pages 2-5.

INSIDE THIS ISSUELandi Renzo, Clean Energy Combine Global NGV Compressor Businesses. . 5

People -- FERC Commissioner Richard Glick. . . . . . . . . . . . . . . . . 8

Brief -- Adelphia Gateway . . . . . . . . . . . . . . . . . . . . . . . . . 8

NGI’s Daily Gas Price Index Wednesday, November 29, 2017

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...cont' pg. 3

Trade Date: Nov 28; Flow Date(s): Nov 29RANGE AVG CHG VOL DEALS

South TexasAgua Dulce -- -- -- -- --Florida Gas Zone 1 -- -- -- -- --NGPL S. TX 2.87-2.87 2.87 0.05 1 2Tennessee Zone 0 South 2.77-2.80 2.79 0.13 57 14Texas Eastern S. TX 2.86-2.88 2.87 0.09 55 18Transco Zone 1 2.84-2.87 2.86 0.05 18 8Tres Palacios 2.81-2.90 2.83 0.10 75 14S. TX Regional Avg. 2.77-2.90 2.84 0.05 205 56

East TexasAtmos Zone 3 -- -- -- -- --Carthage 2.77-2.81 2.78 0.08 492 74Golden Triangle Storage -- -- -- -- --Houston Ship Channel 2.87-2.90 2.88 0.07 21 6HPL - East Texas Pool -- -- -- -- --Katy 2.85-2.91 2.88 0.12 843 86Maypearl -- -- -- -- --Moss Bluff 2.92-2.97 2.95 0.15 149 16NGPL TexOk 2.73-2.77 2.75 0.10 419 64Tennessee Zone 0 North -- -- -- -- --Texas Eastern E. TX 2.85-2.89 2.86 0.14 17 6Tolar Hub -- -- -- -- --Transco Zone 2 2.84-2.87 2.86 0.09 49 16E. TX Regional Avg. 2.73-2.97 2.85 0.16 1,987 268

West Texas/SE New MexicoEl Paso Permian 2.35-2.46 2.40 0.07 282 65Northern Natural Gas 1-7 2.43-2.45 2.45 0.10 54 8Oneok WesTex 2.45-2.52 2.48 0.05 123 24Transwestern 2.38-2.48 2.39 0.07 32 12Waha 2.40-2.65 2.53 0.06 246 36W. TX/SE NM Regional Avg. 2.35-2.65 2.45 0.07 736 145

MidwestAlliance 2.83-2.88 2.85 0.14 595 86ANR ML7 2.86-2.87 2.87 0.11 52 3Bluewater Hub -- -- -- -- --Chicago Citygate 2.82-2.90 2.85 0.15 1,136 158Chicago - Nicor Gas 2.82-2.87 2.84 0.15 490 70Chicago - NIPSCO 2.82-2.90 2.85 0.15 495 64Chicago - North Shore -- -- -- -- --Chicago - Peoples 2.83-2.89 2.85 0.15 152 24

CASH MARKET PRICES

Trade Date: Nov 28; Flow Date(s): Nov 29RANGE AVG CHG VOL DEALS

Consumers Energy 2.82-2.89 2.85 0.14 215 49Dawn 3.00-3.14 3.06 0.17 868 107Emerson 2.67-2.75 2.70 0.09 274 63Joliet 2.82-2.88 2.85 0.14 1,277 182Lebanon 2.75-2.79 2.76 0.10 157 35Michigan Consolidated 2.84-2.90 2.86 0.13 590 93NGPL Amarillo Mainline 2.70-2.75 2.72 0.14 196 36NGPL Iowa-Illinois -- -- -- -- --NGPL MidAmerican -- -- -- -- --Parkway/Union 3.05-3.14 3.08 0.16 34 9REX into ANR - Shelby 2.74-2.80 2.76 0.07 518 93REX into MGT - Edgar 2.77-2.79 2.78 0.11 377 55REX into NGPL - Moultrie 2.75-2.79 2.77 0.09 333 50REX into PEPL - Putnam 2.75-2.76 2.76 0.07 34 6REX into Trunk - Douglas 2.75-2.78 2.77 0.07 228 38St. Clair 2.99-3.07 3.04 0.15 100 7Midwest Regional Avg. 2.67-3.14 2.84 0.12 6,381 984

MidcontinentANR SW 2.52-2.65 2.55 0.12 216 25Enable East 2.59-2.63 2.62 0.07 70 18Enable West -- -- -- -- --NGPL Midcontinent 2.53-2.56 2.55 0.10 449 68Northern Border Ventura 2.74-2.78 2.76 0.15 163 26Northern Natural Demarc 2.73-2.80 2.75 0.14 502 78Northern Natural Gas 8-12 -- -- -- -- --Northern Natural Gas 13-16A -- -- -- -- --Northern Natural Ventura 2.74-2.77 2.75 0.15 265 35OGT 2.50-2.60 2.57 0.20 39 6Panhandle Eastern 2.36-2.43 2.41 0.11 185 37Southern Star 2.44-2.51 2.47 0.09 101 14Transwestern Panhandle Pool -- -- -- -- --Midcontinent Regional Avg. 2.36-2.80 2.60 0.12 1,988 307

North Louisiana/ArkansasEnable South 2.80-2.80 2.80 -- 1 2NGPL Gulf Coast Mainline 2.76-2.79 2.77 0.10 46 6Perryville 2.82-2.84 2.83 0.10 105 3Texas Eastern, M1, 24 2.73-2.79 2.74 -0.01 15 12Texas Gas Zone 1 2.78-2.80 2.78 0.08 502 65Trunkline Zone 1A 2.78-2.80 2.79 0.09 198 33N. LA Regional Avg. 2.73-2.84 2.79 0.08 865 121

. For more info and daily 10am ET updates of this chart, go to natgasintel.com/rextracker

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NGI’s Daily Gas Price Index Wednesday, November 29, 2017

...cont' pg. 4

Trade Date: Nov 28; Flow Date(s): Nov 29RANGE AVG CHG VOL DEALS

South LouisianaANR SE 2.79-2.89 2.83 0.08 252 38Bobcat Storage 2.91-2.91 2.91 -- 21 1Columbia Gulf Mainline 2.78-2.83 2.81 0.10 1,037 149Columbia Gulf onshore 2.85-2.90 2.87 0.12 65 14Egan Hub 2.90-2.90 2.90 0.12 25 1Florida Gas Zone 2 2.91-2.91 2.91 0.07 31 2Henry Hub 2.89-2.94 2.91 0.09 228 34NGPL Louisiana -- -- -- -- --Pine Prairie 2.85-2.88 2.86 0.11 368 47Southern Natural 2.83-2.90 2.88 0.10 797 137Tennessee Line 500 2.85-2.91 2.88 0.14 251 45Tennessee Line 800 2.82-2.95 2.84 0.13 489 94Texas Eastern E. LA 2.87-2.89 2.88 0.15 112 16Texas Eastern W. LA 2.86-2.90 2.88 0.14 188 24Texas Gas Zone SL 2.79-2.80 2.79 0.09 13 4Transco Zone 3 2.85-2.93 2.88 0.11 237 45Trunkline E. LA 2.82-2.85 2.83 0.04 10 4Trunkline W. LA 2.90-2.90 2.90 -- 10 1S. LA Regional Avg. 2.78-2.95 2.87 0.11 4,129 656

SoutheastCove Point -- -- -- -- --FGT Citygate 3.00-3.04 3.03 -- 8 2Florida Gas Zone 3 2.90-2.95 2.92 0.11 354 52Southern Pines -- -- -- -- --Tenn Zone 1 100L 2.82-2.82 2.82 0.13 36 8Texas Eastern M-1, 30 2.84-2.86 2.85 0.14 42 12Transco Zone 4 2.85-2.92 2.89 0.09 988 164Transco Zone 5 2.96-2.99 2.97 0.11 145 38Transco Zone 5 North 2.96-2.99 2.97 0.13 70 17Transco Zone 5 South 2.96-2.99 2.98 0.12 76 21Southeast Regional Avg. 2.82-3.04 2.93 0.13 1,571 276

AppalachiaColumbia Gas 2.73-2.82 2.76 0.07 1,370 230Dominion North 2.40-2.45 2.42 0.14 107 27Dominion South 2.35-2.47 2.41 0.12 1,016 224Leidy Hub -- -- -- -- --Millennium Delivered -- -- -- -- --Millennium East Pool 2.36-2.41 2.39 0.13 62 23Tenn Zone 4 200L 2.79-2.83 2.80 0.16 116 26Tennessee Zn 4 313 Pool 2.50-2.56 2.52 0.17 97 21Tennessee Zn 4 Marcellus 2.26-2.38 2.30 0.13 100 28Texas Eastern M-2, 30 Delivery -- -- -- -- --Texas Eastern M-2, 30 Receipt 2.38-2.47 2.42 0.15 494 104Texas Eastern M-3, Delivery 2.55-2.63 2.59 0.19 225 53Texas Eastern M-3, Receipt -- -- -- -- --Transco-Leidy Line 2.30-2.47 2.38 0.16 160 34Appalachia Regional Avg. 2.26-2.83 2.50 0.14 3,742 770

NortheastAlgonquin Citygate 3.10-3.20 3.14 0.10 64 17Algonquin Citygate (non-G) 3.10-3.20 3.14 0.14 64 16

CASH MARKET PRICES

Trade Date: Nov 28; Flow Date(s): Nov 29RANGE AVG CHG VOL DEALS

Algonquin Receipts 2.58-2.58 2.58 -0.09 2 1Dracut -- -- -- -- --Iroquois Zone 1 -- -- -- -- --Iroquois Zone 2 3.10-3.19 3.14 0.17 80 20Iroquois, Waddington 3.12-3.17 3.15 0.19 183 48Maritimes & Northeast 5.00-5.00 5.00 -- 5 1Niagara 2.83-2.90 2.83 -- 5 3PNGTS 4.25-4.35 4.30 -0.07 22 3Tenn Zone 5 200L 3.10-3.25 3.22 0.28 62 9Tenn Zone 5 300L -- -- -- -- --Tenn Zone 6 200L 3.30-3.65 3.50 0.20 182 46Tenn Zone 6 300L -- -- -- -- --Transco Zone 6 non-NY 2.90-3.00 2.95 0.24 206 44Transco Zone 6 non-NY North 2.90-3.00 2.95 0.24 206 44Transco Zone 6 non-NY South -- -- -- -- --Transco Zone 6 NY 2.94-3.05 2.97 0.22 62 14Northeast Regional Avg. 2.58-5.00 3.30 0.26 868 206

Rocky MountainsCheyenne Hub 2.55-2.60 2.58 0.02 455 75CIG 2.50-2.59 2.54 -0.02 61 18CIG DJ Basin 2.48-2.56 2.54 -- 22 6El Paso Bondad 2.38-2.47 2.45 0.05 6 6El Paso non-Bondad 2.43-2.47 2.46 0.06 105 16Kern River 2.60-2.64 2.62 0.01 534 93Kingsgate 2.38-2.43 2.41 0.03 109 24Northwest S. of Green River 2.59-2.60 2.60 0.07 103 17Northwest Sumas 2.57-2.65 2.63 -0.01 147 25Northwest Wyoming Pool 2.57-2.64 2.61 0.03 133 23Opal 2.61-2.64 2.62 0.01 578 85Questar 2.55-2.60 2.57 0.06 52 12Ruby - Receipts -- -- -- -- --Stanfield 2.60-2.63 2.61 0.04 178 28Transwestern San Juan 2.40-2.43 2.42 0.00 18 6White River Hub 2.57-2.61 2.59 0.06 285 36Rocky Mtns. Regional Avg. 2.38-2.65 2.55 0.03 2,631 449

Arizona/NevadaEl Paso S. Mainline/N. Baja 2.65-2.71 2.69 -0.04 26 8Kern Delivery 2.72-2.82 2.74 0.00 420 69

CaliforniaMalin 2.62-2.69 2.66 0.04 331 72PG&E Citygate 3.12-3.13 3.13 0.09 923 85SoCal Citygate 4.70-5.75 5.03 0.36 280 66Southern Border, PG&E 2.55-2.60 2.57 0.09 123 36SoCal Border Avg. 2.68-2.80 2.73 0.00 186 32California Regional Avg. 2.55-5.75 3.22 0.11 1,842 291National Avg. 2.26-5.75 2.81 0.12 27,383 4,606

CanadaEmpress 2.42-2.63 2.55 0.21 378 56NOVA/AECO C 2.01-2.07 2.03 0.13 743 111Westcoast Station 2 1.05-1.07 1.06 -0.72 9 3

Prices are in U.S.$/MMBtu except locations in the Canada section which are in Cdn$/GJ. The deals column represents the number of transactions used by NGI in the calculation of the price. The volume column is the sum of the volume of those deals, in thousand MMBtus/day. Volumes may not total because of rounding. The data upon which we derive our indexes include both data provided to NGI from the ICE trading platform as well as submitted directly from companies who are principals to the trade. For more information, please see NGI's Price Methodology.

continued to show confidence Tuesday in a cold pattern developing across most of the country late next week, according to NatGas-Weather.com.

"Minor changes in the latest weather data, and this time colder trending for the middle of next week around Dec. 6 to add a few heating degree days (HDD), while most importantly holding onto a frigid U.S. pattern Dec. 7-13 besides portions of the West," the firm said in a midday update to clients.

"...There's another six days of milder than normal conditions and lighter than normal demand to get through before this major pattern shift takes place, but it remains solidly on track." Focus will soon shift to whether "additional cold blasts can continue into the northern and eastern U.S. past Dec. 14, which we expect is likely."

The cold spelled out in the longer-term forecast, and the upward momentum in futures, appeared to have the cash market's attention even as near-term weather offered little to excite the bulls.

. . . from MARKETS REPORT - SoCal Spikes in Forwards, Bidweek, pg. 1In Tuesday's spot market, points across the Midwest, Gulf Coast,

Northeast, Southeast and Appalachia firmed by a dime or more fol-lowing broad-based losses going back to last week.

Day-ahead deliveries at Henry Hub added 9 cents to $2.91 Tuesday, still lagging the December contract by 16 cents.

In the Northeast, Algonquin Citygate added 10 cents to $3.14 as Transco Zone 6 New York jumped 22 cents to $2.97. In the Mid-west and Midcontinent, Chicago Citygate added 15 cents to $2.85, while Northern Natural Demarcation jumped 14 cents to $2.75.

In Appalachia, Dominion South gained 12 cents to $2.41, while in Texas, Katy added 12 cents to $2.88.

Meanwhile, in Day 3 of Bidweek Tuesday, gas traded for De-cember delivery reflected the bullish response to the forecast cold observed in the futures market. Averages at many points were tracking more than $1.00 higher month/month.

Northeast bidweek prices led the way, with Algonquin Citygate

NGI’s Daily Gas Price Index Wednesday, November 29, 2017

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Trade Date: Nov 28CONTRACT OPEN HIGH LOW SETTLE CHANGE

Dec-17 2.9470 3.1020 2.9450 3.0740 0.1460Jan-18 3.0400 3.1540 3.0280 3.1280 0.1110Feb-18 3.0420 3.1550 3.0340 3.1310 0.1080Mar-18 3.0080 3.1140 3.0010 3.0920 0.1020Apr-18 2.8760 2.9330 2.8700 2.9260 0.0590May-18 2.8650 2.9190 2.8620 2.9130 0.0530Jun-18 2.8920 2.9440 2.8910 2.9380 0.0500Jul-18 2.9260 2.9740 2.9230 2.9670 0.0470Aug-18 2.9320 2.9770 2.9290 2.9700 0.0460Sep-18 2.9200 2.9610 2.9190 2.9540 0.0460Oct-18 2.9410 2.9840 2.9410 2.9780 0.0450Nov-18 2.9980 3.0360 2.9980 3.0310 0.0430Dec-18 3.1440 3.1700 3.1440 3.1650 0.0400Jan-19 3.2280 3.2530 3.2280 3.2510 0.0380Feb-19 3.2060 3.2220 3.2020 3.2200 0.0360Mar-19 3.1350 3.1500 3.1310 3.1470 0.0320Apr-19 2.7900 2.7930 2.7860 2.7920 0.0070May-19 2.7480 2.7490 2.7460 2.7480 0.0040Jun-19 2.7720 2.7720 2.7720 2.7720 0.0040Jul-19 2.7920 2.8040 2.7920 2.7990 0.0040Aug-19 2.7990 2.7990 2.7990 2.7990 0.0030Sep-19 2.7800 2.7840 2.7800 2.7840 0.0020Oct-19 2.8100 2.8100 2.8010 2.8070 0.0010Nov-19 2.8690 2.8690 2.8600 2.8650 0.0000Dec-19 3.0160 3.0180 3.0120 3.0180 0.0000Jan-20 3.1210 3.1210 3.1210 3.1210 0.0010Feb-20 3.0940 3.0940 3.0940 3.0940 0.0010Mar-20 3.0400 3.0400 3.0400 3.0400 0.0010Apr-20 2.7350 2.7350 2.7350 2.7350 0.0010May-20 2.7100 2.7100 2.7100 2.7100 0.0010Jun-20 2.7350 2.7350 2.7350 2.7350 0.0010Jul-20 2.7630 2.7630 2.7630 2.7630 0.0010Aug-20 2.7780 2.7780 2.7780 2.7780 0.0010Sep-20 2.7780 2.7780 2.7780 2.7780 0.0010Oct-20 2.8030 2.8030 2.8030 2.8030 0.0010Nov-20 2.8700 2.8700 2.8700 2.8700 0.0010

Source: CME Group, Inc. Updates provided by CSI.

HENRY HUB FUTURES PRICES

Region % Power % Change MDC (MW) MW OfflineNortheast 100 0 25,957 0Southeast 94 1 32,535 1,943Midwest 93 1 21,011 1,469West 83 0 21,089 3,678Total 93 0 100,591 7,090

Source: Nuclear Regulatory Commission. How to Interpret These Data: The bar chart depicts the Maximum Daily Capacity (MDC) power in Megawatts (MW) generated as a percentage of maximum power generation across all nuclear reactors in the United States for the date listed. The tabular data breaks down those percentages into the four regions and adds a column showing the Megawatts offline in each region. For updated reports or to see a breakdown to the individual nuclear unit level, please visit: naturalgasintel.com/nrc

bidweek trades averaging $5.80/MMBtu cumulatively after trading as high as $6.38/MMbtu Tuesday. Tennessee Zone 6 200L bidweek prices were averaging $6.31 after trading as high as $7.08 Tuesday, according to NGI's Bidweek Alert.

Then there's SoCal Citygate, which has been hit with multiple ongoing supply restrictions and which continued to show signs of volatility Tuesday. Day-ahead deliveries jumped 36 cents to $5.03.

Sempra Energy’s gas utility Southern California Gas (SoCalGas) continues to report zero scheduled volumes through key import points at Topock, AZ, and Needles, CA, and more recently ...cont' pg. 5

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NGI’s Daily Gas Price Index Wednesday, November 29, 2017

...cont' pg. 6

NATURAL GAS VEHICLESLandi Renzo, Clean Energy Combine Global NGV Compressor Businesses

Global natural gas vehicle (NGV) supplier Landi Renzo SpA and California-based Clean Energy Fuels Corp. said Monday they plan to combine their compressor manufacturing units to form a standalone company.

Italian-based Landi Renzo is familiar with the North American market. Three years ago it created SAFE North America to market compressed natural gas (CNG) compressors on this side of the Atlan-tic. Landi has more than 60 years of experience with CNG.

The two companies said the combination is complementary, as SAFE has a strong presence in European and Asian markets, and Clean Energy Compression is well established in the North and South

imports across the Mexico border at Otay Mesa have also been re-stricted. This is on top of limited availability of storage withdrawals from Aliso Canyon in the aftermath of the leak discovered in 2015.

Anxiety over potential supply shortages has manifested in Bidweek and Forward Look prices this week as potential December demand increases loom on the horizon.

Bidweek trades at SoCal Citygate surged as high as $7.55 Tues-day and have averaged $6.19 through three days. Meanwhile, fixed price forwards at SoCal Citygate jumped 10.21% on Monday’s trade date to average $6.206, according to NGI's Forward Look.

SoCal Citygate prices for December have now surpassed the perennially constrained Algonquin Citygate, where fixed price for-wards traded at $5.563 on average Monday, Forward Look data show.

"It makes sense that December would be coming in higher given the continued restrictions at those import points and the continued limitations at Aliso, when also considering that December and January have historically been two of the most significant demand months for SoCal," Genscape Inc. analyst Joseph Bernardi told NGI Tuesday.

"Other than the continued unavailability" of imports through Otay Mesa, "which had previously served as an outlet for SoCal to continue receiving some rerouted Permian Basin molecules, we aren't seeing any additional current maintenance events." As for when the restrictions at Topock, Needles and Otay Mesa could be lifted, "SoCal has not provided any updated information on potential end dates."

The restrictions on imports into the SoCalGas system have been

severe enough that state regulators are concerned. A report issued Tuesday by California energy agencies and the Los Angeles Depart-ment of Water and Power highlighted the uncertainty of natural gas supply availability this winter.

Officials predict that supplies from Aliso Canyon, the state's largest gas storage facility, would be needed this winter. "Under extreme cold weather events, there may be insufficient gas supplies to meet demand even relying on withdrawals from all of the other storage fields," the report noted. n

NGI’s Daily Gas Price Index Wednesday, November 29, 2017

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Source: Genscape. Flow volume is in thousand MMBtus and is taken from the evening nomination cycle on the day prior to actual flow into the specified points. Excludes volumes delivered from or into LDC systems (except MichCon), intrastate pipelines, and gathering systems. These data are updated first at naturalgasintel.com/flowdata-imports. A more detailed version of this table that breaks out U.S. natural gas imports from and exports to Canada, Mexico, and LNG facilities is also available on our website.Genscape can be reached at natgassales@genscape.com

Source: Genscape and NGI's Daily Gas Price Index. Flow volume is in thousand MMBtus and is taken from the evening nomination cycle on the day prior to actual flow into or out of the pipelines at the specified location. Supply represents gas that flows into a pipeline from producers, gathering lines, and the tailgates of processing plants, and is therefore a proxy for production. Demand measures gas that is delivered either to a citygate, or to end-users along a pipeline. Imports show gas flows into a pipeline from interconnects with other pipelines, while Exports indicate gas that is delivered into other pipelines. Not all of these statistics are applicable to each pipeline or Hub. D/D Chg expresses the volume change between the most recent gas day and day-ago flows. Y/Y Chg represents the volume from the current and year-ago gas days. NGI's Daily Spot Price is the price per MMBtu for "day-ahead" gas as defined in NGI's Price Methodology for gas to be delivered on the flow day expressed at the top of this chart. Difference to Henry Hub displays the difference between each market price and the NGI's Daily Gas Price Index price for the comparable time period.Genscape can be reached at natgassales@genscape.com

American markets.When the deal closes, which is expected by the end of the year,

Landi Renzo would be majority owner (51%) of the combined entity and assume operational management, with Group CEO Cristiano Musi as CEO of the combined entity. Clean Energy would retain the minority stake, with its CEO Andrew Littlefair serving as chairman.

The move by Clean Energy was foreshadowed earlier this month during a 3Q2017 earnings conference call in which manage-ment unveiled plans to reduce its fueling network of 600 stations and seek a partner for its compression equipment.

The new company is to be headquartered in Italy, but it would retain Clean Energy's British Columbia manufacturing operations.

"The world is rapidly waking up to the harmful impact that diesel is having on air quality,” said Musi. The combined compressor company should be "uniquely positioned" to take advantage of trends toward NGV transportation with a “global footprint."

Littlefair echoed Musi's comments, noting that the businesses create "a completely complementary structure in geography, expertise and highly competitive products." The organization would "automati-cally achieve leading positions in Europe and North America, and lay the foundation to accelerate growth in new geographies of the Middle East, Africa and Asia." n

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NGI’s Daily Gas Price Index Wednesday, November 29, 2017

. . . from DRILLING - XOM's Hebron Project Ramps Up Offshore, pg. 1

Canada Ltd. (29.6%), Suncor Energy Inc. (21%), Statoil Canada Ltd. (9%) and Nalcor Energy-Oil and Gas Inc. (4.9%).

The Hebron platform, with storage capacity of 1.2 mil-lion bbl, is about 200 miles offshore in water depths of about 300 feet. The standalone gravity-based structure supports an integrated topsides deck with living quarters and drilling and production facilities.

During its eight-year engineering, construction and startup phase, the Hebron project contracted vendors throughout the province and created an estimated 7,500 jobs during the peak of the construction phase. The project achieved more than 40 million hours without a lost-time injury during construction, ExxonMobil noted.

“The local and international contractors played a critical role in helping to complete the Hebron project ahead of schedule,” Mal-lon said. “By leveraging their expertise, we were able to bring this world-class platform online safely and successfully.” n

. . . from MEXICO - Gonzalez Anaya Promoted to Mexico's Finance Minister, pg. 1

year of the current Mexican administration, traditionally a period of political fragility.

The appointment of Trevino to replace Gonzalez Anaya con-firmed a view that Pemex is not so much a company but rather a government department, said Houston-based George Baker, president of Energia.com.

State-controlled exploration and production operators that include Brazil's Petróleo Brasileiro SA (Petrobras), Colombia's Ecopetrol SA and Norway's Statoil ASA mostly operate like “regu-lar” producers, with CEOs who have track records in the industry and whose duration of tenure is similar to that of the majors, Baker told NGI.

Petrobras, Ecopetrol and Statoil have operations beyond their national borders, and many have been involved in operations under Mexico's 2013 energy reform that ended almost eight decades of state control.

The change in Pemex coincided with a media report about Jesus Reyes Heroles, a former Pemex chief, ex-energy secretary and a former Mexican ambassador to the United States, who hailed Mexico’s energy reform but described as "a major error" the status of Pemex as an item on the federal budget rather than launching it on the stock market.

Petrobras raised $70 billion in a 2010 initial public offer, giv-ing Brazil's reform a huge boost. Reyes Heroles and other analysts maintain that Pemex should have followed suit, but Pena Nieto's

. . . from LNG - NextDecade Considering Two Trains, pg. 1

project, to be built on a 1,000-acre site in the Port of Brownsville, was scalable, and that a full complement of six trains would be capable of exporting 27 mmty -- roughly the equivalent of 3.6 Bcf/d -- over a 30-year period.

"NextDecade intends to develop the full six-train plant at Rio Grande LNG, but does not need to develop the full-scale facility in order to offer customers significant cost advantages, environ-mental benefits, and reliable LNG supply," management said Monday.

The company said the project was advancing through the regu-latory process and expects to receive a notice of schedule from the Federal Energy Regulatory Commission "in the near future."

The project is to be serviced by the Rio Bravo Pipeline, a dual 42-inch diameter pipeline that would run around 140 miles from the Agua Dulce market area near Corpus Christi, TX, to feed gas to the facility.

NextDecade expects to receive final authorization in the second half of 2018. It currently has authorization from the De-partment of Energy to export natural gas to countries that have U.S. free trade agreements. n

hands apparently were tied.Leftwing politicians, who formed part

of the grand alliance to achieve a two-thirds majority in Congress for the energy reform, were bitterly opposed to the "privatization" of Pemex, long regarded as a symbol of national sovereignty. n

NGI’s Daily Gas Price Index Wednesday, November 29, 2017

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Daily Gas Price Index

Wednesday, November 29, 2017Volume 25, No. 100

REGULATORYPeople -- FERC Commissioner Richard Glick

Richard Glick, a Democrat who has been general counsel for the Senate Energy and Natural Resources Committee, is scheduled to be sworn in Wednesday as a commissioner for the Federal En-ergy Regulatory Commission, a FERC spokesper-son said. Glick was nominated by President Trump to serve the remainder of a five-year term expiring June 30, 2022. His nomination and that of Kevin McIntyre were confirmed by the Senate Nov. 2. McIntyre, a Republican, would become chairman upon joining FERC, but has yet to be sworn in, and there was no indication when that would happen. Glick would join two Republicans -- Acting Chair-man Neil Chatterjee and Commissioner Robert Powelson -- and one Democrat, Cheryl LaFleur, on the regulatory panel. Various theories have been floated as to whether the unprecedented delay in seating a full five-member panel has something to do with the upcoming vote on the Energy Depart-ment’s proposed rule for FERC to prop up declining numbers of coal and nuclear-fired power plants. n

OPEN SEASONBrief -- Adelphia Gateway

A New Jersey Resources Corp. subsidiary has extended the binding open season to Dec. 8 for up to 250,000 Dth/d of firm transportation on an existing 84-mile pipeline in southeast

Pennsylvania. Adelphia Gateway LLC extended the open season, launched in early November, in response to customer requests for a delivery interconnection with Columbia Gas Transmission (TCO) in Delaware County near the borough of Marcus Hook. For information contact David Johnson or Jack Herbert at openseason@adelphiagate-way.com. The pipeline once delivered oil from a refinery, but a portion of the system now delivers natural gas. Adelphia wants to repurpose the remaining pipe to deliver more gas to the Philadelphia area. n