Winter Premiums Persist in Midwest Despite Ample Storage
Despite having ample natural gas storage in the Midwest, winter premiums persist, highlighting the importance of pipeline access and deliverability during peak demand periods.
Above-average inventories have had little effect on erasing the regional premiums embedded in the winter forward curve, according to a recent report from Natural Gas Intelligence. The premium remains a key consideration for market participants, underscoring the value of having sufficient pipeline capacity during times of high demand.
The Chicago basis has held steady at around 20 cents above the national average, indicating that the regional premium is still a concern for traders and consumers alike. Additionally, the Northern Border Ventura pipeline has retained a wider scarcity premium, suggesting that access to this vital pipeline remains limited and valuable during peak periods.