HomeMy WebLinkAboutSection V Natural Gas.pdfIdaho Public Utilities Commission
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NATURAL GAS
Consumption decreased and prices were relatively stable in FY20191
In Idaho, natural gas is supplied to customers by Avista Corporation, Dominion Questar Gas, and Intermountain
Gas Company. Idaho is fortunate to be located between two large natural gas basins: The Rocky Mountain Basin
(Rockies) and the Western Canadian Sedimentary Basin (WCSB).
These basins are connected through the Williams Northwest Pipeline and the TransCanada Gas Transmission
Northwest pipelines allowing the utility companies serving Idaho to take advantage of capacity and of pricing at
both basins.
Individual Idaho Gas Utility Profiles
FY 2019 Statistics Total Residential Commercial Industrial Transportation2
Avista Corporation
Customers 85,475 76,338 9,041 88 8
Dominion Questar Gas
Customers 2,241 1,989 252 0 0
Intermountain Gas
Customers 368,601 335,050 33,424 23 104
1 The Idaho Public Utilities Commission’s fiscal year is July 1st through June 30th.
2 Transportation is nonutility owned gas transported for another party under contractual agreement.
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Consumption
Overall consumption of natural gas in Idaho decreased 1.8 percent. All segments consumed less natural gas than
the previous year with the exception of gas for electric generation which increased approximately 8.5 percent.
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Demand
The Northwest Gas Association (NWGA) forecasts demand for natural gas in the Northwest to grow at a
Compound Annual Growth Rate (CAGR) of approximately 1.1% per year over the next ten years3. Forecasted
growth in power generation, commercial, and residential is higher while industrial growth is forecasted at
approximately the same rate as the prior year.
A number of factors could impact demand for natural gas:
Retirement of coal fired generation and increased use for generating electricity.
The potential for natural gas as a transportation fuel.
LNG and petrochemical production and exports.
Energy policies, regulations, and legislation.
Prices
Recently, prices at the Henry Hub have been hovering under $3.00 (per thousand cubic feet) and are anticipated
to remain close to this level for the foreseeable future. Henry Hub natural gas spot prices are projected to be
$2.67 in 2019 and $2.61 in 20204.
3 Northwest Gas Association 2018 Pacific Northwest Gas Market Outlook
4 EIA Forecast October 8, 2019
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Production
Alta Mesa Holdings LP is currently the only natural gas producer in Idaho. Production numbers were not available
for 2019.
Alta Mesa operations overview:
• The Company has seventeen wells located in the Payette, Idaho basin.
• Six wells are producing natural gas, condensate, oil, and other liquids.
• The Company’s processing facility is located at Willow Creek near Payette. Natural gas is piped to the
Williams Northwest Pipeline system and liquids are transported out of state for processing.
Summary
Idaho residential, commercial, electric power producers, and industrial users of natural gas continue to benefit
from low natural gas prices and plentiful supply.
-by Kevin Keyt, IPUC Staff Analyst