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 17 cents from $1.89 per million British thermal units (MMBtu) last Wednesday to $2.06/MMBtu yesterday.
• Henry Hub futures price: The price of the October 2024 NYMEX contract increased 4.8 cents, from $2.097/MMBtu last Wednesday to $2.145/MMBtu yesterday. The price of the 12-month strip averaging October 2024 through September 2025 futures contracts increased 8.2 cents to $2.934/MMBtu.
• Select regional spot prices: Natural gas spot prices rose at all major pricing locations this report week (Wednesday, August 28, to Wednesday, September 4). Price increases ranged from 14 cents at FGT Citygate to $3.57 at the Waha Hub.
• Prices increased in the Northeast this report week. At the Algonquin Citygate, which serves Boston-area consumers, the price rose 40 cents from $1.48/MMBtu last Wednesday to $1.88/MMBtu yesterday. At Transco Zone 6 NY, the price increased 16 cents from $1.43/MMBtu last Wednesday to $1.59/MMBtu yesterday. Maintenance on Algonquin Gas Transmission beginning September 4 reduced available pipeline capacity by approximately 0.3 billion cubic feet per day (Bcf/d) at the Cromwell Compressor Station in Middlesex County, Connecticut, and 0.5 Bcf/d at the Chaplin Compressor Station in Windham County, Connecticut. The price at Eastern Gas South in southwest Pennsylvania, near Appalachia region production activities, increased 18 cents from $1.36/MMBtu last Wednesday to $1.54/MMBtu yesterday. Natural gas production in the Appalachia region decreased by 1% (0.3 Bcf/d) to 34.1 Bcf/d this report week, according to data from S&P Global Commodity Insights, which is down 2% (0.7 Bcf/d) from the average for July and August combined.
• On the West Coast, the price at PG&E Citygate in Northern California rose 38 cents from $2.26/MMBtu last Wednesday to $2.64/MMBtu yesterday. The price at SoCal Citygate in Southern California increased 60 cents from $1.51/MMBtu last Wednesday to $2.11/MMBtu yesterday. Natural gas consumption in the electric power sector in California increased 36% (0.6 Bcf/d), according to data from S&P Global Commodity Insights. Temperatures in the Riverside Area, east of Los Angeles, averaged 81°F this report week, resulting in 116 cooling degree days (CDDs), 35 more CDDs than last week and 16 more than normal. Yesterday, the temperature reached a daily maximum of 108°F, which resulted in 23 CDDs, 9 more CDDs than normal. Temperatures in the Sacramento Area followed a similar trend this report week, reaching a daily maximum of 102°F yesterday and recording 79 CDDs for the week, 22 more CDDs than last report week and 13 more than normal.
• At Northwest Sumas on the Canada-Washington border, the main pricing point for natural gas in the Pacific Northwest, the price rose 42 cents from $1.28/MMBtu last Wednesday to $1.70/MMBtu yesterday. Natural gas consumption in the electric power sector in the Pacific Northwest increased 17% (0.2 Bcf/d) this week. Temperatures in the Seattle City Area averaged 68°F this report week, or 3°F more than normal, resulting in 24 CDDs, 23 more CDDs than last week and 12 more than normal.
• The price at the Waha Hub in West Texas, which is located near Permian Basin production activities, increased $3.57 from -$3.67/MMBtu last Wednesday to -$0.10/MMBtu yesterday. The Waha Hub traded $2.16 below the Henry Hub price yesterday, compared with last Wednesday when it traded $5.56 below the Henry Hub price. Natural gas production in West Texas decreased 1.5% (0.2 Bcf/d) this report week, according to data from S&P Global Commodity Insights. The Waha Hub price reached an intraweek low of -$6.41/MMBtu on August 29, its second-lowest price in inflation-adjusted dollars since 1995, when Natural Gas Intelligence began collecting the data. Relatively high production in the Permian Basin and pipeline maintenance have contributed to sub-zero prices at the Waha Hub since July 26 and on 47% of the trading days in 2024.

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

• International futures prices: International natural gas futures price changes were mixed 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 3 cents to a weekly average of $13.93/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands decreased 4 cents to a weekly average of $12.28/MMBtu. In the same week last year (week ending September 6, 2023), the prices were $13.26/MMBtu in East Asia and $10.75/MMBtu at TTF.
• Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 18 cents/MMBtu, averaging $6.57/MMBtu for the week ending September 4. Ethane prices fell 1% week over week, while weekly average natural gas prices at the Houston Ship Channel increased 3%, narrowing the ethane premium to natural gas by 16%. The ethylene spot price rose 3% week over week, and the ethylene premium to ethane increased 4%. Propane prices decreased 4%, while Brent crude oil prices decreased 3% week over week, narrowing the propane discount to crude oil by 2% for the week. Normal butane prices fell 1%, isobutane prices were relatively unchanged, 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 fell by 0.7% (0.7 Bcf/d) compared with the previous report week. Dry natural gas production decreased by 0.4% (0.4 Bcf/d) to average 101.6 Bcf/d, and average net imports from Canada decreased by 4.8% (0.3 Bcf/d) from last week.
• Demand: Total U.S. consumption of natural gas fell by 3.8% (2.9 Bcf/d) compared with the previous report week, according to data from S&P Global Commodity Insights. Natural gas consumed for power generation declined by 5.4% (2.4 Bcf/d) week over week. Consumption in the industrial sector increased by 0.3% (0.1 Bcf/d), and consumption in the residential and commercial sector declined by 6.2% (0.5 Bcf/d). Natural gas exports to Mexico increased 3.3% (0.2 Bcf/d). Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 13.1 Bcf/d, or 0.4 Bcf/d higher than last week.

Liquefied Natural Gas (LNG)

• Pipeline receipts: Average natural gas deliveries to U.S. LNG export terminals increased 0.4 Bcf/d from last week to 13.1 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Louisiana increased by 2.8% (0.2 Bcf/d) to 8.0 Bcf/d, while natural gas deliveries to terminals in South Texas increased 2.6% (0.1 Bcf/d) to 4.1 Bcf/d. Natural gas deliveries to terminals outside the Gulf Coast were essentially unchanged.
• Vessels departing U.S. ports: Twenty-five LNG vessels (nine from Sabine Pass, five from Freeport, four from Corpus Christi, three each from Calcasieu Pass and Cameron, and one from Cove Point) with a combined LNG-carrying capacity of 94 Bcf departed the United States between August 29 and September 4, according to shipping data provided by Bloomberg Finance, L.P.

Rig Count

• According to Baker Hughes, for the week ending Tuesday, August 27, the natural gas rig count decreased by 2 rigs from a week ago to 95 rigs. The Eagle Ford added one rig, the Haynesville dropped one rig, and the Marcellus dropped two rigs. The number of oil-directed rigs was unchanged from a week ago at 483 rigs. The Cana Woodford added one rig, and one rig was added among unidentified producing regions. The DJ-Niobrara and the Permian each dropped one rig. The total rig count, which includes 5 miscellaneous rigs, now stands at 583 rigs, 48 fewer rigs than a year ago.

Storage

• Net injections into storage totaled 13 Bcf for the week ending August 30, compared with the five-year (2019–2023) average net injections of 51 Bcf and last year's net injections of 33 Bcf during the same week. Working natural gas stocks totaled 3,347 Bcf, which is 323 Bcf (11%) more than the five-year average and 208 Bcf (7%) 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 injections of 19 Bcf to 33 Bcf, with a median estimate of 25 Bcf.
• The average rate of injections into storage is 22% lower than the five-year average so far in the refill season (April through October). If the rate of injections into storage matched the five-year average of 11.1 Bcf/d for the remainder of the refill season, the total inventory would be 4,035 Bcf on October 31, which is 323 Bcf higher than the five-year average of 3,712 Bcf for that time of year.

See also:

• Natural Gas Analysis Reports
• Short-Term Energy Outlook