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 4 cents from $1.59 per million British thermal units (MMBtu) last Wednesday to $1.63/MMBtu yesterday.
• Henry Hub futures price: The May 2024 NYMEX contract expired Friday at $1.614/MMBtu, down 4 cents from last Wednesday. The June 2024 NYMEX contract price decreased to $1.932/MMBtu, down 5 cents from last Wednesday to yesterday. The price of the 12-month strip averaging June 2024 through May 2025 futures contracts declined 5 cents to $2.880/MMBtu.
• Select regional spot prices: Natural gas spot price changes were mixed across most major pricing hubs this report week (Wednesday, April 24 to Wednesday, May 1). Price changes ranged from a decrease of 26 cents at the SoCal Citygate to an increase of 27 cents at the Florida Gas Transmission Citygate, which delivers natural gas into Florida.
• Prices in the Northeast fell this report week, as warmer weather reduced overall natural gas consumption. The price at the Algonquin Citygate, which serves Boston-area consumers, fell from $1.56/MMBtu last Wednesday to $1.43/MMBtu yesterday, a decrease of 13 cents. Temperatures in the Boston Area averaged 50°F this report week, or 3°F below normal, and averaged as high as 61°F on April 29. Residential and commercial sector natural gas consumption in New England fell 20% (0.2 billion cubic feet per day [Bcf/d]), according to data from S&P Global Commodity Insights, due to the warmer temperatures in the region this week. At the Transcontinental Pipeline Zone 6 trading point for New York City, the price fell 17 cents from $1.56/MMBtu last Wednesday to $1.39/MMBtu yesterday. The average temperature in the New York-Central Park Area rose 7°F this report week, 3°F above normal. Residential and commercial sector consumption in New York and New Jersey fell 25% (0.8 Bcf/d) due to the rising temperatures.
• Prices in California decreased this report week. At the SoCal Citygate, which serves Southern California, prices fell 26 cents from $1.74/MMBtu last Wednesday to $1.48/MMBtu yesterday. Average temperatures in the Riverside Area, outside of Los Angeles, were essentially unchanged this week. Prices at the PG&E Citygate, which serves Northern California, fell 1 cent on the week from $2.25/MMBtu last Wednesday to $2.24/MMBtu yesterday. Average temperatures in the San Jose Area fell 3°F this report week to 61°F. Total natural gas consumption in California rose 4% (0.2 Bcf/d) this report week, driven by a 10% (0.2 Bcf/d) increase in residential and commercial sector consumption, according to data from S&P Global Commodity Insights.
• Price changes across Texas were mixed this report week. The price at the Houston Ship Channel rose 16 cents, from $1.18/MMBtu last Wednesday to $1.34/MMBtu yesterday. Temperatures in the Houston Area rose 6°F this report week to an average 76°F yesterday. Electric power sector consumption of natural gas in South Texas rose 20% (0.7 Bcf/d) due to increased demand for air conditioning. In West Texas, the price at the Waha hub, which is located near Permian Basin production activities, fell 23 cents from $0.07/MMBtu last Wednesday to -$0.17/MMBtu yesterday. The Waha price reached an intraweek low of -$2.13/MMBtu on April 26 after Kinder Morgan declared force majeure on the Natural Gas Pipeline Company’s (NGPL) Lockridge Lateral in Segment 9 of its Permian Zone, reducing capacity to move natural gas out of the production region. The lateral is expected to return to service on May 8. Prices increased on April 29 after NGPL was able to reduce the number of receipt/delivery points affected by the force majeure. Electric power sector consumption of natural gas across Texas rose 20% (0.9 Bcf/d) this week, which more than offset the combined decrease in consumption in the residential and commercial sector and the industrial sector (0.3 Bcf/d), according to data from S&P Global Commodity Insights.

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

• International futures prices: International natural gas futures prices decreased this report week. According to Bloomberg Finance, L.P., weekly average front-month futures prices for liquefied natural gas (LNG) cargoes in East Asia decreased 21 cents to a weekly average of $10.31/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands decreased 30 cents to a weekly average of $9.07/MMBtu. In the same week last year (week ending May 3, 2023), the prices were $11.54/MMBtu in East Asia and $12.32/MMBtu at TTF.
• Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by nearly 2 cents/MMBtu, averaging $7.21/MMBtu for the week ending May 1. Ethane prices fell 7% week over week, while weekly average natural gas prices at the Houston Ship Channel decreased 2%, narrowing the ethane premium to natural gas by 5%. The ethylene spot price was unchanged week over week, and the ethylene premium to ethane increased 4%. Propane prices decreased 1%, while Brent crude oil prices were relatively unchanged week over week. The propane discount to crude oil increased 2% for the week. Normal butane prices fell 2%, isobutane prices rose 13%, and natural gasoline prices rose 1%.

Supply and Demand

• Supply: According to data from S&P Global Commodity Insights, the average total supply of natural gas fell by 0.5% (0.5 Bcf/d) compared with the previous report week. Dry natural gas production decreased by 0.4% (0.4 Bcf/d) to an average 99.2 Bcf/d, and average net imports from Canada decreased by 2.6% (0.1 Bcf/d) from last week.
• Demand: Total U.S. consumption of natural gas fell by 6.4% (4.7 Bcf/d) compared with the previous report week, according to data from S&P Global Commodity Insights. Residential and commercial sector consumption declined by 28.9% (5.8 Bcf/d), and industrial sector consumption decreased by 3.0% (0.7 Bcf/d), due to warmer weather across much of the United States. Natural gas consumed for power generation climbed by 5.9% (1.8 Bcf/d) week over week. Natural gas exports to Mexico increased 2.2% (0.1 Bcf/d). Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 12.2 Bcf/d, 0.7 Bcf/d higher than last week.

Liquefied Natural Gas (LNG)

• Pipeline receipts: Average natural gas deliveries to U.S. LNG export terminals increased 6.3% (0.7 Bcf/d) week over week, averaging 12.2 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Texas rose 22% (0.4 Bcf/d) to 2.4 Bcf/d. Deliveries to terminals in South Louisiana rose 3.5% (0.3 Bcf/d) to 8.5 Bcf/d this report week. Deliveries to terminals outside of the U.S. Gulf Coast were essentially unchanged this report week at 1.3 Bcf/d.
• Vessels departing U.S. ports: Twenty-one LNG vessels (six from Sabine Pass; four from Cameron; three each Calcasieu Pass, Corpus Christi, and Cove Point; and one each from Elba Island and Freeport) with a combined LNG-carrying capacity of 80 Bcf departed the United States between April 25 and May 1, according to shipping data provided by Bloomberg Finance, L.P.

Rig Count

• According to Baker Hughes, for the week ending Tuesday, April 23, the natural gas rig count fell by 1 rig to 105 rigs, with the Marcellus dropping 1 rig. The number of oil-directed rigs fell by 5 rigs to 506 rigs. The Permian, Granite Wash, and DJ-Niobrara dropped one rig each, and two rigs were dropped among unidentified producing regions. The present total rig count, which includes 2 miscellaneous rigs, stands at 613 rigs, 142 fewer rigs than last year at this time.

Storage

• Net injections into storage totaled 59 Bcf for the week ending April 26, compared with the five-year (2019–2023) average net injections of 72 Bcf and last year's net injections of 62 Bcf during the same week. Working natural gas stocks totaled 2,484 Bcf, which is 642 Bcf (35%) more than the five-year average and 436 Bcf (21%) 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 43 Bcf to 74 Bcf, with a median estimate of 57 Bcf.

See also:

• Natural Gas Analysis Reports
• Short-Term Energy Outlook