Rising cash and forward valuations accompany recent and surprising strength in industrial gas demand from Texas and the Southeast.
Modeled, regional estimates from S&P Global Platts Analytics show industrial demand in the Southeast averaging about 6.3 Bcf/d this month, making for the second-highest April demand level on record.
Recent data from US petroleum refineries, also heavily concentrated along the US Gulf Coast, suggests that summer fuel demand could already be ramping up.
In April, gas transmissions from Texas to Mexico are already trending at their highest monthly average on record at over 5.5 Bcf/d – bucking the typical shoulder-season demand weakness.