June 6, 2024

CPV Begins Operations at Stagecoach Solar in Macon County, GA

PJM Regulatory Review

  • PJM’s Interconnection Process Subcommittee is working to revise and update its interconnection process which will also take into account developer concerns.

  • PJM has proposed new guidance related to dual fuel units during periods when the supply of natural gas changes during an operating day.

  • A report titled “Summer Energy and Electric Reliability Assessment” was recently issued by the FERC and NERC which basically concluded that demand would be higher, but prices would be lower than those experienced in 2023.

Energy Market Update

  • Storage inventory differentials to last year will continue to compress as reduced production coupled with solid demand from gas generators has slowed the rate of injections.

  • A recent heat wave in Asia has boosted LNG demand and prices as cargoes have been bid up above $12/MMBTU which diverted carriers away from Europe.

  • Oil prices have sold off motivated by inventory builds and questionable demand sustainability out of China even as demand in India exceeds expectations.

  • US supply increased back above 100 BCF/D as several producers brought some shut-in supply as a result of low prices. However, this rally was short-lived, and recent sub $1.0/MMBtu cash prices caused gas to be choked back pushing supply back below 100 BCF/D.

  • Saudi Aramco is looking to diversify its investment portfolio and is in discussions to buy into US LNG projects.

Forward Pricing