Southeast Storms Ease Strain on Natural Gas Pipelines

The Labor Day weekend is expected to bring relief to the Southeast region's natural gas pipeline system as thunderstorms sweep through the area, easing restrictions and cooling demand. According to recent data, Southeast air-conditioning demand is set to drop sharply over the holiday weekend, which should ease strain on pipelines operating under operational flow orders (OFOs). This comes as spot prices climbed above $7/MMBtu.

Transco Zone 5 Cooling Degree Days (CDDs) are expected to dip on Monday, while Transco OFOs will run through Saturday. Meanwhile, US CDDs remain above normal for the next 15 days. The storms are forecasted to bring much-needed relief to the region's natural gas pipeline system.