MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for September 11^th

Updated at 5:00 PM ET 

HEADLINES:

— EIA reports 18Bcf Injection into US NatGas Storage Last Wk

— CEC: Calif. Diesel Supply Drops 115k bbl

— CEC: Calif. Gasoline Stocks Fall 578k bbl

— Glenfarne, POSCO Ink Alaska LNG Partnership

— US CPI Rises 0.4% in August, Gasoline Index Up, USD Drops

NEWS:

EIA reports 18Bcf Injection into US NatGas Storage Last Wk

 Energy Information Administration data released midmorning on Thursday (9/11) show a 71 billion cubic feet injection into U.S. natural gas storage to 3.343 trillion cubic feet in the week ended September 5.
Natural gas in U.S. storage is 1.1% lower than last year and 6% above the five-year average of 3.155 Tcf.
Regionally, EIA reports the East registered a 22 Bcf injection to 757 Bcf, 2.6% less than a year ago and 1.9% higher than the five-year average.
Natural gas in storage in the Midwest increased 30 Bcf week-on-week to 890 Bcf, a 5.9% deficit compared to the same week a year ago and 0.2% higher than the five-year average.
Mountain region natural gas in storage increased 3 Bcf, down 5.9% year-on-year to 20.7% above the five-year average.
South Central storage rose 16 Bcf to 1145 Bcf, 4.2% more than in the same week last year and 9.5% above the five-year average.

CEC: Calif. Diesel Supply Drops 115k bbl

California total diesel inventories moved lower in the week ending September 5 with Northern California reporting the sharpest draw, according to the California Energy Commission’s latest Weekly Fuels Report.

Statewide diesel inventories, including CARB and other grades, dropped by 115,000 bbl to 3.015 million bbl in the reference week.

In Northern California, overall diesel inventories fell by 270,000 bbl to 1.215 million bbl in the respective week. The draw was led by CARB diesel, which dropped by 268,000 bbl to 709,000 bbl, while other diesel stocks edged down by 2,000 bbl to 506,000 bbl.

Southern California diesel inventories climbed by 155,000 bbl to 1.800 million bbl. CARB diesel rose by 120,000 bbl to 876,000 bbl, and other diesel supply increased by 35,000 bbl to 924,000 bbl.

Production across the state also slipped sharply. Total diesel output dropped by 302,000 bbl to 1.455 million bbl.

Southern California led the decline with production down by 300,000 bbl to 898,000 bbl, driven by a 142,000 bbl drop in CARB diesel to 493,000 bbl and a 158,000 bbl decrease in other diesel to 405,000 bbl.

Northern California output edged down by 2,000 bbl to 557,000 bbl. CARB diesel production in the region climbed slightly by 5,000 bbl to 402,500 bbl, while other diesel slipped by 7,000 bbl to 154,500 bbl.

CEC: Calif. Gasoline Stocks Fall 578k bbl

California gasoline inventories, including blending components, declined in the week ending September 5, led by draws in both Northern and Southern California, according to the California Energy Commission’s latest Weekly Fuels Report.

Statewide gasoline inventories, including all categories, fell by 578,000 bbl to 11.566 million bbl in the week ended September 5.

In Northern California, total gasoline inventories fell by 276,000 bbl to 5.333 million bbl. CARB gasoline dropped by 264,000 bbl to 3.203 million bbl, while non-California gasoline declined by 72,000 bbl to 192,000 bbl. Blending components, however, rose by 60,000 bbl to 1.938 million bbl.

Southern California gasoline stocks declined by 302,000 bbl to 6.233 million bbl. CARB gasoline climbed by 212,000 bbl to 2.999 million bbl, while non-California gasoline slipped by 27,000 bbl to 785,000 bbl. Blending components dropped by 275,000 bbl to 2.449 million bbl.

Production also moved lower during the reference week. Statewide gasoline output fell by 736,000 bbl to 5.459 million bbl.

Southern California production slid by 511,000 bbl to 3.606 million bbl. CARB gasoline production fell by 574,000 bbl to 3.048 million bbl, while non-California gasoline output climbed by 63,000 bbl to 558,000 bbl.

In Northern California, overall gasoline output declined by 225,000 bbl to 1.853 million bbl. CARB gasoline production dropped by 333,000 bbl to 1.464 million bbl, while non-California gasoline output rose by 108,000 bbl to 389,000 bbl.

Glenfarne, POSCO Ink Alaska LNG Partnership

Glenfarne Alaska LNG and POSCO International Corporation announced on Thursday (9/10) an agreement to advance a strategic partnership for the development of the Alaska LNG Project. This is the only federally authorized LNG export project on the U.S. Pacific Coast.

The agreement will close pending board approvals by both sides. Alaska LNG is a joint venture between Glenfarne, and the state-owned Alaska Gasline Development Corporation. POSCO is a major Korean LNG importer.

POSCO is expected to supply a significant portion of the steel required for Alaska LNG’s 807-mile, 42-inch pressurized natural gas pipeline, which will connect Southcentral Alaska with stranded natural gas resources on the North Slope.

The agreement will include initial terms for a 20-year Heads of Agreement for 1 million tonnes per annum (MTPA) of LNG offtake on a Free-on-Board basis. This will be the first announced HOA for Alaska LNG.

The Alaska LNG project consists of a pipeline capable of transporting enough natural gas to meet both Alaska’s domestic needs and supply the full 20 MTPA Alaska LNG export terminal in Nikiski, Alaska.

The pipeline will be built in two independent, financially viable phases. Phase One will deliver natural gas approximately 765 miles from the North Slope to the Anchorage region. Phase Two includes the Alaska LNG facility, nearly 42 miles of pipeline under Cook Inlet, and pipeline compression equipment.

Glenfarne’s permitted North American LNG portfolio totals 32.8 MTPA of capacity under development in Alaska, Texas and Louisiana.

US CPI Rises 0.4% in August, Gasoline Index Up, USD Drops

The U.S. Consumer Price Index increased 0.4% in August, after increasing 0.2% in July, bringing the annual rate of inflation for the all-items index to 2.9%, up from 2.7% in the previous month, according to data released this morning by the U.S. Bureau of Labor Statistics. ​The CPI year-on-year figure was above market expectation of a 2.7% increase.

BLS reported that the energy index rose 0.7% in August as the gasoline index grew 1.9% from the previous month.

The food index was up 0.5% month-on-month as the indices for food at home and food away from home rose 0.6% and 0.3%, respectively.

The all-items less food and energy index, so-called core inflation, rose 0.3% in August, similar to the monthly rise recorded in July.

Categories that increased in August included airline fares, new vehicles, and used cars and trucks. Meanwhile, medical care, recreation and communication were among the few major indexes that decreased in the reviewed month.

In response to the data, the October NYMEX WTI futures contract extended its decline to $0.84, trading near $62.83 bbl. The U.S. dollar index decreased by 0.240 points to 97.695 against a basket of foreign currencies.