The United States warns of power outages as 30% of natural gas is at risk this winter

NERC issues an alert to strengthen the preparedness of energy players as an exceptional cold wave threatens 30% of natural gas production, a key element of the reliability of the U.S. power grid.

Share:

Comprehensive energy news coverage, updated nonstop

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

7-Day Pass

Up to 50 articles accessible for 7 days, with no automatic renewal

3 $/week*

FREE ACCOUNT

3 articles/month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 30,000 articles • 150+ analyses per week

An exceptional cold wave could seriously impact natural gas production in the United States in January, according to an alert issued by the North American Electric Reliability Corp. (NERC). With extreme temperatures forecasted in key production regions, approximately 30% of natural gas supply is considered at risk.

An electricity grid under pressure

Natural gas powers a significant share of U.S. power plants, particularly during periods of peak winter demand. Weather forecasts from AccuWeather predict a sharp drop in temperatures, notably in the Northeast and Appalachia, home to the Marcellus Shale production region.

Jim Robb, NERC president, warned that this situation could lead to power outages if supply chains are not secured. “Actions taken today could help us avoid the consequences of the winter storms of 2021 and 2022,” he stated in a message addressed to the entire energy sector.

Coordination still insufficient

Despite efforts by regulators to strengthen preparedness standards, coordination between the gas and electricity sectors remains inadequate. Standards developed by NERC and approved by the Federal Energy Regulatory Commission (FERC) have been slow to implement.

The National Association of Regulatory Utility Commissioners (NARUC) recently launched a forum on natural gas readiness. This event brought together public policymakers and private sector representatives, but the lack of concrete results raises concerns among market observers.

Pressures on infrastructure

Natural gas producers, facing risks of equipment freezing, have adopted measures such as adding wellhead protections and utilizing heating systems. However, challenges remain, particularly for pipeline operators and electricity distributors.

The vulnerability of energy infrastructures to extreme weather conditions also highlights the absence of a national reliability structure for natural gas. This idea, supported by FERC and NERC, faces strong opposition from the gas industry, which fears additional costs and increased regulatory constraints.

A crisis that could disrupt the market

With freezing temperatures and rising energy demand, even a minor disruption in the natural gas supply chain could trigger price increases and widespread power outages. This situation underscores the need for market players to bolster their resilience to weather-related risks.

Rockpoint Gas Storage priced its initial public offering at C$22 per share, raising C$704mn ($515mn) through the sale of 32 million shares, with an over-allotment option expanding the transaction to 36.8 million shares.
Tailwater Capital secures $600mn in debt and $500mn in equity to recapitalise Producers Midstream II and support infrastructure development in the southern United States.
An economic study reveals that Germany’s gas storage levels could prevent up to €25 billion in economic losses during a winter supply shock.
New Fortress Energy has initiated the initial ignition of its 624 MW CELBA 2 power plant in Brazil, starting the commissioning phase ahead of commercial operations expected later this year.
Talen Energy launches $1.2bn debt financing and expands credit facilities to support strategic acquisitions of two combined-cycle natural gas power plants.
The Ukrainian government is preparing to raise natural gas imports by 30% to offset damage to its energy infrastructure and ensure supply continuity during the winter season.
Driven by rising electricity demand and grid flexibility needs, natural gas power generation is expected to grow at an annual rate of 4.8% through 2030.
Talen Energy secures $1.2bn term financing and increases two credit facilities to support the acquisition of two natural gas power plants with a combined capacity of 2,881 MW.
Tenaz Energy finalised the purchase of stakes in the GEMS project between Dutch and German waters, aiming to boost production to 7,000 boe/d by 2026.
Sembcorp Salalah Power & Water Company has obtained a new 10-year Power and Water Purchase Agreement from Nama Power and Water Procurement Company, ensuring operational continuity until 2037.
Eni North Africa restarts drilling operations on well C1-16/4 off the Libyan coast, suspended since 2020, aiming to complete exploration near the Bahr Es Salam gas field.
GOIL is investing $50mn to expand its LPG storage capacity in response to sustained demand growth and to improve national supply security.
QatarEnergy continues its international expansion by acquiring 27% of the offshore North Cleopatra block from Shell, amid Egypt’s strategic push to revive gas exploration in the Eastern Mediterranean.
An analysis by Wood Mackenzie shows that expanding UK oil and gas production would reduce costs and emissions while remaining within international climate targets.
Polish authorities have 40 days to decide on the extradition of a Ukrainian accused of participating in the 2022 sabotage of the Nord Stream pipelines in the Baltic Sea.
The Japanese company has completed the first phase of a tender for five annual cargoes of liquefied natural gas over seven years starting in April 2027, amid a gradual contractual renewal process.
Baker Hughes has secured a contract from Bechtel to provide gas turbines and compressors for the second phase of Sempra Infrastructure’s LNG export project in Texas.
Targa Resources will build a 500,000 barrels-per-day pipeline in the Permian Basin to connect its assets to Mont Belvieu, strengthening its logistics network with commissioning scheduled for the third quarter of 2027.
Brazilian holding J&F Investimentos is in talks to acquire EDF’s Norte Fluminense thermal plant, valued up to BRL2bn ($374 million), as energy-related M&A activity surges across the country.
Chevron has appointed Bank of America to manage the sale of pipeline infrastructure in the Denver-Julesburg basin, targeting a valuation of over $2 billion, according to sources familiar with the matter.

All the latest energy news, all the time

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

7 DAY PASS

Up to 50 items can be consulted for 7 days,
without automatic renewal

3$/week*

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.