TCO Pipeline Leak Slips Natural Gas Futures from Three-Month Highs

Natural gas futures declined slightly on Friday after reaching three-month highs the previous day due to concerns about the impact of a force majeure declaration by Columbia Gas Transmission (TCO) on production in the Lower 48 states.

The TCO pipeline leak has resulted in a reduction of 1.8 billion cubic feet per day (Bcf/d) in production, which is currently at 106.5 Bcf/d. This surplus was accompanied by a storage surplus that shrunk to 2.9% and a power burn drop of 7.5 Bcf/d week-over-week.

Traders are weighing the duration of the force majeure declaration, which could affect production levels in the region for an extended period.