North America gas markets: What to look for in 2018

After just one month, 2018 will surely be remembered as a record-breaking year in the North American gas market, starting out with storage withdrawals exceeding 300 bcf for the first time and cash prices breaching $100/mmbtu due to recent cold snaps. But more importantly, year-on-year production increases for the US and Canada are expected to hit a staggering 10 bcfd altogether, the strongest annual growth in history and equivalent to adding another Permian to the gas market. Some of the supply growth will hinge on more than 18 bcfd of the new pipeline capacity that is set to ramp up this year, and five more LNG export terminals will commence operation to draw almost 5 bcfd of feedgas by year-end, pouring the foundations for US exports’ influence in the global gas market. However, the tremendous market expansion still comes with a number of uncertainties. The attached slide deck provides more details on the top five things to look for in 2018.