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 rose 24 cents from $2.10 per million British thermal units (MMBtu) last Wednesday to $2.34/MMBtu yesterday.
• Henry Hub futures price: The price of the December 2024 NYMEX contract increased 21 cents, from $2.983/MMBtu last Wednesday to $3.193/MMBtu yesterday. The price of the 12-month strip averaging December 2024 through November 2025 futures contracts rose 13 cents to $3.227/MMBtu.
• Select regional spot prices: Natural gas spot prices rose at all major pricing locations this report week (Wednesday, November 13, to Wednesday, November 20). Price changes ranged from an increase of 3 cents at Houston Ship Channel to an increase of $2.45 at the Waha Hub.
• Prices increased in the Northeast this report week, driven by colder weather and increased natural gas consumption. At the Algonquin Citygate, which serves Boston-area consumers, the price rose 23 cents from $2.61/MMBtu last Wednesday to $2.84/MMBtu yesterday. At the Transco Zone 6 NY trading point for New York City, the price increased 35 cents from $2.00/MMBtu last Wednesday to $2.35/MMBtu yesterday. The price at Eastern Gas South near Appalachian Basin production activities rose 39 cents from $1.81/MMBtu last Wednesday to $2.20/MMBtu yesterday. Temperatures in the New York-Central Park Area averaged 52°F this report week, which resulted in 86 heating degree days (HDDs), 12 more than the previous report week. Natural gas consumption in the Northeast increased by 3% (0.7 billion cubic feet per day [Bcf/d]), according to data from S&P Global Commodity Insights, led by a 12% (0.9 Bcf/d) increase in consumption in the residential and commercial sector to meet space heating demand.
• Below-average temperatures in California led to increased demand for space heating while prices also increased this report week. The price at SoCal Citygate in Southern California increased 38 cents from $2.59/MMBtu last Wednesday to $2.97/MMBtu yesterday. At PG&E Citygate in Northern California, the price rose 59 cents from $3.52/MMBtu last Wednesday to $4.11/MMBtu yesterday. Temperatures in the Riverside Area, east of Los Angeles, averaged 56°F this week, 5°F below normal, resulting in 61 HDDs, 37 more HDDs than the previous report week and 24 more than normal. Temperatures in the Sacramento Area averaged 50°F this report week, 4°F below normal, resulting in 107 HDDs, 24 more HDDs than both last week and normal. Natural gas consumption in the residential and commercial sector increased 23% (0.6 Bcf/d), according to S&P Global Commodity Insights.
• At Northwest Sumas on the Canada-Washington border, the main pricing point for natural gas in the Pacific Northwest, the price increased $2.14 from $0.96/MMBtu last Wednesday to $3.10/MMBtu yesterday. Severe storms in the form of atmospheric rivers and bomb cyclones hit the West Coast this week. Natural gas consumption in the Pacific Northwest increased 13% (0.3 Bcf/d), according to data from S&P Global Commodity Insights. In addition, Flow Past Kingsgate, the throughput meter on Gas Transmission Northwest in Boundary County, Idaho, has been operating at reduced capacity (16%, or 0.5 Bcf/d) since November 12. Natural gas exports from Canada to the Pacific Northwest decreased 10% (0.4 Bcf/d) from the previous report week.
• In Texas, prices rose this report week, although by much less in Southeast Texas than in West Texas. The Houston Ship Channel price rose 3 cents from $1.85/MMBtu last Wednesday to $1.88/MMBtu yesterday. Natural gas consumption in the electric power sector in South Texas decreased 10% (0.4 Bcf/d) this week, according to data from S&P Global Commodity Insights. The Electric Reliability Council of Texas (ERCOT) reported the share of natural gas used for electricity generation declined by 32% this report week and the share of electricity generated by wind increased by 61%, according to our Hourly Electric Grid Monitor. In West Texas, the 2.6-Bcf/d Permian Highway Pipeline, which transports natural gas from the Permian Basin to the Texas Gulf Coast, completed end-of-year inspections this week and anticipated resuming full service yesterday. In addition, natural gas production in West Texas decreased by 3% (0.3 Bcf/d) this report week, according to data from S&P Global Commodity Insights. The price at the Waha Hub in West Texas, located near Permian Basin production activities, increased $2.45 from -$0.83/MMBtu last Wednesday to $1.62/MMBtu yesterday. The Waha Hub traded 72 cents below the Henry Hub price yesterday, compared with last Wednesday when it traded $2.93 below the Henry Hub price. The Waha Hub price has been above zero most trading days this report week after being below zero on 65% of the trading days since October 1.

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 63 cents to a weekly average of $14.17/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands increased 90 cents to a weekly average of $14.38/MMBtu. In the same week last year (week ending November 22, 2023), the prices were $16.83/MMBtu in East Asia and $14.41/MMBtu at TTF.
• Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 12 cents/MMBtu, averaging $7.37/MMBtu for the week ending November 20. Ethane prices rose 9% week over week, while weekly average natural gas prices at the Houston Ship Channel increased 15%, widening the ethane premium to natural gas by 3%. The ethylene spot price rose 3% week over week, and the ethylene premium to ethane increased 1%. Propane and Brent crude oil prices each decreased 1%, widening the propane discount to crude oil by 1%. Normal butane and isobutane prices each fell 7%, and natural gasoline prices fell 3%.

Supply and Demand

• Supply: According to data from S&P Global Commodity Insights, the average total supply of natural gas rose by 0.7% (0.8 Bcf/d) compared with the previous report week. Dry natural gas production grew by 1.3% (1.4 Bcf/d) to average 102.4 Bcf/d, and average net imports from Canada decreased by 8.5% (0.6 Bcf/d) from last week.
• Demand: Total U.S. consumption of natural gas rose by 0.9% (0.7 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 13.9% (3.1 Bcf/d) week over week. Natural gas consumed for power generation declined by 7.5% (2.6 Bcf/d), and consumption in the industrial sector increased by 0.8% (0.2 Bcf/d). Natural gas exports to Mexico decreased 4.6% (0.3 Bcf/d). Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 14.2 Bcf/d, or 0.1 Bcf/d higher than last week.

Liquefied Natural Gas (LNG)

• Pipeline receipts: Average natural gas deliveries to U.S. LNG export terminals increased 0.1 Bcf/d from last week to 14.2 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Louisiana increased by 5.0% (0.4 Bcf/d) to 8.6 Bcf/d, while natural gas deliveries to terminals in South Texas decreased by 6.9% (0.3 Bcf/d) to 4.4 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-three LNG vessels (seven from Sabine Pass; four from Freeport; three each from Cameron, Corpus Christi, and Cove Point; two from Calcasieu Pass; and one from Elba Island) with a combined LNG-carrying capacity of 86 Bcf departed the United States between November 14 and November 20, according to shipping data provided by Bloomberg Finance, L.P.

Rig Count

• According to Baker Hughes, for the week ending Tuesday, November 12, the natural gas rig count decreased by 1 rig from a week ago to 101 rigs. The Marcellus added one rig, while the Arkoma Woodford dropped one rig, and one rig was dropped among unidentified producing regions. The number of oil-directed rigs decreased by 1 rig from a week ago to 478 rigs, with the Cana Woodford dropping 1 rig. The total rig count, which includes 5 miscellaneous rigs, now stands at 584 rigs, 34 fewer rigs than a year ago.

Storage

• Net withdrawals from storage totaled 3 Bcf for the week ending November 15, compared with the five-year (2019–2023) average net withdrawals of 16 Bcf and last year's net injections of 12 Bcf during the same week. Working natural gas stocks totaled 3,969 Bcf, which is 239 Bcf (6%) more than the five-year average and 141 Bcf (4%) 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 7 Bcf to net injections of 14 Bcf, with a median estimate of net injections of 4 Bcf.

See also:

• Natural Gas Analysis Reports
• Short-Term Energy Outlook