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8 Pages

New England markets: the peak day problem


New England markets: the peak day problem

Report summary

The New England gas market features the largest seasonal price swing in North America. Gas pipeline capacity into the area is limited and while it is sufficient to meet the area's demand during the bulk of the year, it often falls short in the winter.  Until recently, pipeline expansion seemed the most likely solution to the New England peak day problem, however pipeline expansion has met with heavy opposition in the area and finding a regulatory solution to pay for pipeline has proved challenging. Recent rulings in Massachusetts and New Hampshire blocking electric utilities from socializing pipeline expansion costs to rate payers makes the path forward for Spectra's Access Northeast even more difficult.

In this insight we will explore the New England winter market's need for a peak day solution given power retirements compounding the already constrained market, and examine what the winter markets will look like without additional pipeline expansion. 

What's included?

This report includes 3 file(s)

  • New England markets: the peak day problem PDF - 1.85 MB 8 Pages, 2 Tables, 4 Figures
  • New England Market Data.xls XLS - 187.50 KB
  • NAGS New England Webfile.xls XLS - 188.00 KB

Description

This Gas Markets Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For participants, suppliers and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.

We provide detailed supply, demand and price forecasts based on our integrated upstream, power, coal and LNG research. Our regional gas experts are based in the markets they analyse, providing comprehensive analyses of regional and global gas markets.

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  • Introduction
    • With the new Massachusetts Supreme Court ruling, only a small amount of new pipeline build remains
    • Power retirements further stress the gas markets
    • Canadian imports can rise--but not offset--the peak demand
    • LNG and oil to fill the gap left by pipeline build
    • Weak global prices keep Algonquin prices in check
    • Algonquin (AGT) Price Scenarios
  • Conclusion

In this report there are 6 tables or charts, including:

  • Introduction
    • New England gas infrastructure
    • Approximate Demand served by pipe in New England
    • New England winter demand potential and pipe constraint
    • LNG Regas capabilities in New England and Eastern Canada
    • Daily LNG sendout required to balance New England markets, by temperature range
    • New England markets: the peak day problem: Image 4
  • Conclusion
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