Summary - 4th Quarter, 1995

The Office of Fuels Programs prepares quarterly reports summarizing the data provided by companies authorized to import or export natural gas. Companies are required, as a condition of their authorizations, to file quarterly reports with the OFP. This report is for the fourth quarter of 1995 (October through December).

Attachment A shows the percentage of takes to maximum firm contract levels and the weighted average per unit price for each of the long-term importers during the five most recent reporting quarters.

Attachment B shows volumes and prices of gas purchased by long-term importers and exporters during the past 12 months.

Attachment C shows volume and price information pertaining to gas imported on a short-term or spot market basis.

Attachment D shows the gas exported on a short-term or spot market basis to Canada and Mexico.

Fourth Quarter Highlights: Canadian imports totaled 729.7 Bcf for the quarter, approaching the record high previously set in the first quarter of 1995 (731.5 Bcf). Seven new long-term Canadian import contracts were activated, totaling 94.7 MMcf per day or 34.6 Bcf annually. Nearly half of these new volumes (40.6 MMcf per day), under 3 contracts, will go to supply two cogeneration facilities and a Massachusetts local distribution company (LDC). A New York cogeneration facility will receive 16.1 MMcf per day and a Michigan industrial customer will receive 18 MMcf per day. Two LDCs in New Hampshire and Vermont will receive 1 MMcf and 19 MMcf per day, respectively. Gas exports to Mexico decreased compared to the previous quarter.

During 1995, data indicates total gas imports grew by about 8.4 percent over the 1994 level (2,840.7 v. 2,619.6 Bcf). Comparing 1995 to 1994, Canadian imports increased by 9.9 percent (2,816.1 v. 2,561.4), Algerian imports decreased by nearly 65 percent (17.9 v. 51 Bcf), and Mexican imports remained fairly constant (6.7 Bcf v. 7 Bcf). During the same time period, total gas exports remained steady (155.8 v. 155.9 Bcf). Exports to Japan increased by 4 percent (65.3 v. 62.7 Bcf), exports to Canada decreased by 37 percent (29.2 v. 46.7 Bcf), and exports to Mexico increased by 32 percent (61.3 v. 46.5 Bcf).

Long-term imports for the quarter totaled 359.9 Bcf, representing a 2 percent increase over the fourth quarter of 1994. Long-term Canadian imports totaled 354.9 Bcf, which is 1 percent more than the fourth quarter of 1994. The average price of these supplies was $1.88 per MMBtu, which was 23 cents or 14 percent higher than the preceding quarter. Under other long-term import arrangements, Distrigas Corporation imported 5 Bcf of Algerian LNG at an average landed price of $2.33 per MMBtu. Pan National Gas Sales, Inc. did not import LNG under its long-term contract.

During the fourth quarter, 109 companies used short-term authorizations to import 376.5 Bcf of natural gas. This volume represents a 13.4 percent increase over the fourth quarter of 1994. Of this total, 374.8 Bcf was imported from Canada and 1.7 Bcf was imported from Mexico. There were no imports of LNG under short-term contracts.

The average price of Mexican gas imported under short-term contracts during the fourth quarter was $1.54 per MMBtu. The average price of short-term Canadian imports was $1.33 per MMBtu compared to $1.04 per MMBtu during the third quarter. Approximately 39 percent of the short-term Canadian sales were made at Eastport, Idaho, at an average price of $0.98 per MMBtu; 20 percent at Sumas, Washington, at $1.11 per MMBtu; 15 percent at Port of Morgan, Montana, at $1.43 per MMBtu; 11 percent at Noyes, Minnesota, at $1.76 per MMBtu; 6 percent at Niagara Falls, New York, at $2.23 per MMBtu; 3 percent at Waddington, New York, at $2.19 per MMBtu; and 6 percent at various other entry points, at $1.93 per MMBtu.

In addition, a total of 25 short-term export authorizations were used, exporting a total of 16.5 Bcf of gas. Eleven authorizations were used to export approximately 6 Bcf to Canada, at an average price of $2.05 per MMBtu. Under 14 other authorizations, approximately 10.5 Bcf was exported to Mexico at an average price of $1.64 per MMBtu.

This quarter's focus report provides a review of gas import/export activity for 1995. Next quarter's focus report will go into further detail of 1995's gas trade. OFP invites ideas from the public on future topics dealing with North American natural gas import/export trade. All general queries concerning this report should be made to Yvonne Caudillo at (202) 586-4587.