WASHINGTON - Projected warmer-than-normal weather, a strengthening economy, and flat production are likely to be the cause of any higher natural gas costs as we enter another summer of tight natural gas markets, according to the Natural Gas Supply Association (NGSA).
"Last year, the National Petroleum Council (NPC) warned that without significant change to the tight balance between supply and demand, wholesale natural gas customers would continue to see weather-related volatility - and that is precisely what's coming to pass," said Joseph Blount, NGSA chairman and president of Unocal Midstream and Trade. "Consistent with the NPC's findings, overall market costs are also likely to trend upward throughout this cooling season, peaking during the hottest days of the year."