The energy transition boosts the forecast for full-year gains in natgas demand | Whuff News


Nov 1 (Reuters) – Pipeline operator Energy Transfer LP ( ET.N ) raised its profit forecast for the third time this year, helped by acquisitions and rising volumes of natural gas flowing through its network.

US natural gas production and demand are set to touch record highs in 2022 on rising prices and exports as European governments seek to wean themselves off Russian gas following its invasion of Ukraine.

The transportation and storage company raised its forecast for adjusted revenue by $200 million to between $12.8 billion and $13 billion for the full year. The high end of its latest estimate is about $1 billion more than the company’s initial estimate for the year.

“It continues to be that prices have been running a little higher than we expected,” said co-Chief Executive Officer Thomas Long, when asked about the drivers behind the higher estimates.

However, Long warned that the recent weakness in domestic gas prices could limit price increases. Spot natural gas prices in the Waha area of ​​the Permian basin in West Texas turned negative for the first time since April this month as demand for cooler weather.

The full-year profit estimate includes a charge of $126 million related to the settlement that was initially envisioned.

Natural gas transportation capacity increased due to the acquisition of the Oklahoma pipeline and storage system, as well as increased production at the Haynesville natural gas field in Northwest Louisiana and East Texas, Energy Transfer said.

The company also benefited from increased oil production in Texas and North Dakota which increased crude oil shipments by 10%.

Transportation and storage terminal volumes were helped by crude sales from the US Strategic Petroleum Reserve (SPR), the company said.

SPR’s high capacity and increased activity in the region drove freight and terminal volumes at its Nederland and Houston terminals to new records in the third quarter, according to Energy Transfer.

Reporting by Arathy Somasekhar; Editing by David Gregorio and Richard Pullin

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