Natural Gas

Today in Energy

Recent Today in Energy analysis of natural gas markets is available on the EIA website.

Market Highlights:

Prices

• Henry Hub spot price: The Henry Hub spot price fell 52 cents from $3.35 per million British thermal units (MMBtu) last Wednesday to $2.83/MMBtu yesterday.
• Henry Hub futures price: The December 2024 contract expired on Tuesday, November 26, at $3.431/MMBtu. The price of the January 2025 NYMEX contract decreased 16 cents, from $3.204/MMBtu last Wednesday to $3.043/MMBtu yesterday. The price of the 12-month strip averaging January 2025 through December 2025 futures contracts declined 8 cents to $3.161/MMBtu.
• Select regional spot prices: Natural gas spot prices fell at most locations this report week (Wednesday, November 27 to Wednesday, December 4). Price changes ranged from a decrease of 52 cents at the Henry Hub to an increase of 68 cents at Northwest Sumas.
• Price changes were mixed in the Northeast this report week. At the Algonquin Citygate, which serves Boston-area consumers, the price rose 22 cents from $9.82/MMBtu last Wednesday to $10.04/MMBtu yesterday. At the Transco Zone 6 NY trading point for New York City, the price decreased 38 cents from $3.68/MMBtu last Wednesday to $3.30/MMBtu yesterday. Temperatures in the Boston Area averaged 36°F this report week, which resulted in 199 heating degree days (HDDs), 60 more HDDs than the previous report week and 23 more HDDs than normal. Natural gas consumption in the Northeast increased by 28% (6.5 billion cubic feet per day [Bcf/d]), according to data from S&P Global Commodity Insights, led by a 46% (5.1 Bcf/d) increase in consumption in the residential and commercial sector to meet space heating demand. Natural gas flows from Appalachia to the New York and New Jersey area increased by 19% (1.6 Bcf/d) from the previous report week.
• At Northwest Sumas on the Canada-Washington border, the main pricing point for natural gas in the Pacific Northwest, the price increased 68 cents from $3.17/MMBtu last Wednesday to $3.85/MMBtu yesterday. Natural gas consumption in the Pacific Northwest increased 20% (0.5 Bcf/d), according to data from S&P Global Commodity Insights, while natural gas imports from Canada to the Pacific Northwest were flat from the previous report week. The average temperature in the Seattle City Area fell 7°F from last report week to a weekly average of 40°F, which was 4°F below normal.
• Prices in California decreased this report week as rising temperatures led to decreases in demand for space heating from Friday to yesterday. The price at SoCal Citygate in Southern California decreased 5 cents from $3.74/MMBtu last Wednesday to $3.69/MMBtu yesterday. At PG&E Citygate in Northern California, the price fell 3 cents from $3.82/MMBtu last Wednesday to $3.79/MMBtu yesterday. Temperatures in the Riverside Area, east of Los Angeles, averaged 61°F this report week, resulting in 14 fewer HDDs than the previous report week. Natural gas consumption in the residential and commercial sector in California decreased 6% (0.2 Bcf/d) this report week, according to S&P Global Commodity Insights.
• The price at the Waha Hub in West Texas, located near Permian Basin production activities, increased 64 cents from $1.81/MMBtu last Wednesday to $2.45/MMBtu yesterday. The price reached an intra-week high on Monday of $2.56/MMBtu, which was the fourth highest of 2024. Prior to the past two weeks, the last time the Waha price traded near $2.00/MMBtu was in January of this year. The Waha Hub has been above zero since mid-November after being below zero on 48% of the trading days this year. The Waha price traded 38 cents below the Henry Hub price yesterday, compared with last Wednesday when it traded $1.54 below the Henry Hub price. Natural gas deliveries from the Matterhorn Express Pipeline to interconnecting pipelines near Houston, Texas, have been fairly steady for the last two weeks. Natural gas consumption in Texas increased 10% (1.1 Bcf/d) this week, according to S&P Global Commodity Insights.

Daily spot prices by region are available on the EIA website.

• International futures prices: International natural gas futures prices increased this report week. According to Bloomberg Finance, L.P., weekly average front-month futures prices for liquefied natural gas (LNG) cargoes in East Asia increased 9 cents to a weekly average of $15.06/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands increased 24 cents to a weekly average of $14.82/MMBtu. In the same week last year (week ending December 6, 2023), the prices were $16.10/MMBtu in East Asia and $12.91/MMBtu at TTF.
• Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 4 cents/MMBtu, averaging $7.54/MMBtu for the week ending December 4. Ethane prices rose 10% week over week, and weekly average natural gas prices at the Houston Ship Channel increased 13%, widening the ethane premium to natural gas by 4%. The ethylene spot price rose 9% week over week, and the ethylene premium to ethane increased 9%. Propane prices decreased 4%, and Brent crude oil prices decreased 1% week over week, widening the propane discount to crude oil by 5%. Normal butane prices fell 4%, and isobutane and natural gasoline prices each fell 1%.

Supply and Demand

• Supply: According to data from S&P Global Commodity Insights, the average total supply of natural gas rose by 0.1% (0.2 Bcf/d) compared with the previous report week. Dry natural gas production decreased by 0.3% (0.3 Bcf/d) to average 103.0 Bcf/d, and average net imports from Canada increased by 7.0% (0.4 Bcf/d) from last week.
• Demand: Total U.S. consumption of natural gas rose by 19.3% (17.4 Bcf/d) compared with the previous report week, according to data from S&P Global Commodity Insights. Natural gas consumed in the residential and commercial sector increased by 41.1% (13.2 Bcf/d) week over week as average temperatures across most of the country were lower than normal. Natural gas consumed for power generation increased by 9.4% (3.1 Bcf/d), and consumption in the industrial sector increased by 4.4% (1.1 Bcf/d). Natural gas exports to Mexico increased 0.5% (less than 0.1 Bcf/d). Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 14.5 Bcf/d, or 0.5 Bcf/d higher than last week.

Liquefied Natural Gas (LNG)

• Pipeline receipts: Average natural gas deliveries to U.S. LNG export terminals increased 0.5 Bcf/d from last week to 14.5 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Louisiana were essentially unchanged at 8.7 Bcf/d, while natural gas deliveries to terminals in South Texas increased by 11.6% (0.5 Bcf/d) to 4.5 Bcf/d. Natural gas deliveries to terminals outside the Gulf Coast were essentially unchanged at 1.2 Bcf/d.
• Vessels departing U.S. ports: Twenty-six LNG vessels (nine from Sabine Pass, five each from Cameron and Freeport, four from Corpus Christi, two from Calcasieu Pass, and one from Cove Point) with a combined LNG-carrying capacity of 98 Bcf departed the United States between November 28 and December 4, according to shipping data provided by Bloomberg Finance, L.P.

Rig Count

• According to Baker Hughes, for the week ending Tuesday, November 26, the natural gas rig count increased by 1 rig from a week ago to 100 rigs, as 1 rig was added among unidentified producing regions. The number of oil-directed rigs decreased by 2 rigs from a week ago to 477 rigs, as 2 rigs were dropped among unidentified producing regions. The total rig count, which includes 5 miscellaneous rigs, now stands at 582 rigs, 43 fewer rigs than last year at this time.

Storage

• Net withdrawals from storage totaled 30 Bcf for the week ending November 29, compared with the five-year (2019–2023) average net withdrawals of 47 Bcf and last year's net withdrawals of 81 Bcf during the same week. Working natural gas stocks totaled 3,937 Bcf, which is 284 Bcf (8%) more than the five-year average and 185 Bcf (5%) more than last year at this time.
• According to The Desk survey of natural gas analysts, estimates of the weekly net change to working natural gas stocks ranged from net withdrawals of 30 Bcf to 55 Bcf, with a median estimate of 39 Bcf.

See also:

• Natural Gas Analysis Reports
• Short-Term Energy Outlook