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US offshore gas production falls at Tropical Storm Cindy nears landfall

2017-06-22 09:13:28

Platts

  Offshore US natural gas production contracted for a second consecutive day Wednesday, though no impact on Gulf Coast hub prices was apparent as Tropical Storm Cindy edged closer to landfall near the Texas-Louisiana border.
 
  Production receipts from Louisiana, Mississippi and Alabama were estimated Wednesday at 2.23 Bcf after falling Tuesday to 2.49 Bcf. From the start of this week, storm-related declines have cut offshore output by about 640 MMcf/d or just over 22% compared to the prior five-day average at 2.87 Bcf/d, data compiled by Platts Analytics show.
 
  Prices at ANR Louisiana and Trunkline ELA -- two hubs that reflect offshore supply and Southeast regional demand -- edged up just 2 cents/MMBtu Wednesday, trading at $2.79/MMBtu and $2.80/MMBtu, respectively, according to data from the Intercontinental Exchange.
 
  At 1 pm CDT (1800 GMT) Cindy was located about 160 miles southeast of Galveston Island, Texas. The storm is expected hit to southeastern Louisiana, southern Mississippi and southern Alabama hardest, making landfall late Wednesday and into Thursday morning. The storm is will bring projected maximum sustained wind speeds of 50mph and rainfall totals of up to 12 inches, according to the National Hurricane Center.