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 1 cent from $2.21 per million British thermal units (MMBtu) last Wednesday to $2.22/MMBtu yesterday.
• Henry Hub futures price: The July 2024 NYMEX contract price increased to $2.757/MMBtu, up 9 cents from last Wednesday to yesterday. The price of the 12-month strip averaging July 2024 through June 2025 futures contracts also climbed 9 cents to $3.223/MMBtu.
• Select regional spot prices: Natural gas spot prices increased across most major trading hubs this report week (Wednesday, May 29 to Wednesday, June 5). Price changes ranged from a decrease of 16 cents at the PG&E Citygate to an increase of 44 cents at Northwest Sumas.
• Prices across the Northeast rose slightly this report week. At the Algonquin Citygate, which serves Boston-area consumers, the price rose 6 cents from $1.49/MMBtu last Wednesday to $1.55/MMBtu yesterday. The price at Eastern Gas South in southwest Pennsylvania, near Appalachian region producing activities, increased 9 cents from $1.28/MMBtu last Wednesday to $1.37/MMBtu yesterday. Weekly average temperatures in the Boston Area fell 3°F this week to 66°F, which is 3°F above normal, resulting in 19 cooling degree days (CDD) and 12 heating degree days (HDD). Average temperatures in the Pittsburgh Area fell 3°F this report week to 67°F, or 1°F above normal, leading to 13 HDDs and 26 CDDs. Natural gas consumption in the Appalachia region rose 8%, or 0.6 billion cubic feet per day (Bcf/d) this report week, according to data from S&P Global Commodity Insights, driven by increased consumption in both the electric power sector (0.3 Bcf/d) and in the industrial sector (0.2 Bcf/d).
• Price changes on the West Coast were mixed this report week. The price at Northwest Sumas on the Canada-Washington border, the main pricing point for natural gas in the Pacific Northwest, rose 44 cents from $1.03/MMBtu last Wednesday to $1.47/MMBtu yesterday. Temperatures in the Seattle City Area rose 3°F this report week but remained 2°F below normal, resulting in 48 HDDs, down from 68 HDDs the previous week. The price at SoCal Citygate in Southern California increased 32 cents from $1.41/MMBtu last Wednesday to $1.73/MMBtu yesterday. Temperatures in the Riverside Area, east of Los Angeles, rose 3°F this report week to 69°F, resulting in 31 CDDs, up from 9 CDDs last report week but 7 CDDs below normal. The price at PG&E Citygate in Northern California fell 16 cents, down from $2.02/MMBtu last Wednesday to $1.86/MMBtu yesterday. Total natural gas consumption in California rose 6% (0.2 Bcf/d) this report week, driven by a 48% increase (0.4 Bcf/d) in electric power sector consumption, according to data from S&P Global Commodity Insights.
• The price at the Waha Hub in West Texas, which is located near Permian Basin production activities, rose 31 cents this report week, from $0.36/MMBtu last Wednesday to $0.67/MMBtu yesterday. The Waha Hub traded $1.55 below the Henry Hub price yesterday, compared with last Wednesday when it traded $1.85 below the Henry Hub price. The Waha price reached an intra-week low of -$0.19/MMBtu on May 31. On May 24, the El Paso Natural Gas Company declared force majeure on Lines 30131/30148 near the Hobbs Power Plant delivery location in Lea County, New Mexico. Repairs began on May 29 and were completed on May 31.
• Prices at FGT Citygate, the main pricing point for deliveries into Florida, remained highest among major trading hubs this report week. The price rose 6 cents from $4.08/MMBtu last Wednesday to $4.14/MMBtu yesterday. Average temperatures in the Orlando Area fell 2°F this week to 82°F, leading to 118 CDDs, 14 more CDDs than normal but 15 CDDs fewer than the previous report week. Natural gas consumption in the electric power sector along the Atlantic Coast region, which includes Florida, fell 6% (0.4 Bcf/d) this report week, 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 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 decreased 2 cents to a weekly average of $11.98/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands increased 14 cents to a weekly average of $11.00/MMBtu. In the same week last year (week ending June 7, 2023), the prices were $9.25/MMBtu in East Asia and $7.95/MMBtu at TTF.
• Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 37 cents/MMBtu, averaging $6.70/MMBtu for the week ending June 5. Ethane prices fell 5% week over week, while weekly average natural gas prices at the Houston Ship Channel decreased 3%, narrowing the ethane premium to natural gas by 1%. The ethylene spot price rose 3% week over week, and the ethylene premium to ethane increased 7%. Propane prices decreased 5%, while Brent crude oil prices decreased 4% week over week. The propane discount to crude oil decreased 3% for the week. Normal butane prices fell 5%, isobutane prices fell 8%, and natural gasoline prices fell 4%.

Supply and Demand

• Supply: According to data from S&P Global Commodity Insights, the average total supply of natural gas fell by 0.6% (0.7 Bcf/d) compared with the previous report week. Dry natural gas production decreased by 0.7% (0.7 Bcf/d), and average net imports from Canada increased by 1.5% (0.1 Bcf/d) from last week.
• Demand: Total U.S. consumption of natural gas rose by 0.3% (0.2 Bcf/d) compared with the previous report week, according to data from S&P Global Commodity Insights. Natural gas consumed for power generation rose by 0.7% (0.2 Bcf/d) week over week. Industrial sector consumption increased by 1.3% (0.3 Bcf/d) and residential and commercial consumption declined by 3.5% (0.3 Bcf/d). Natural gas exports to Mexico decreased 2.9% (0.2 Bcf/d). Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 13.2 Bcf/d, or 0.2 Bcf/d higher than last week.

Liquefied Natural Gas (LNG)

• Pipeline receipts: Average natural gas deliveries to U.S. LNG export terminals increased 0.2 Bcf/d from last week to 13.2 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Louisiana increased 7% (0.5 Bcf/d) to 8.0 Bcf/d, while natural gas deliveries to terminals in South Texas decreased 4.5% (0.2 Bcf/d) to 4.0 Bcf/d. Natural gas deliveries to terminals outside the Gulf Coast averaged 1.2 Bcf/d this week, down from 1.3 Bcf/d the previous week.
• Vessels departing U.S. ports: Twenty-six LNG vessels (eight from Sabine Pass; five from Freeport; four from Corpus Christi; three each from Calcasieu Pass and Cameron; two from Cove Point; and one from Elba Island) with a combined LNG-carrying capacity of 94 Bcf departed the United States between May 30 and June 5, according to shipping data provided by Bloomberg Finance, L.P.

Rig Count

• According to Baker Hughes, for the week ending Tuesday, May 28, the natural gas rig count increased by 1 rig to 100 rigs. The Marcellus added one rig. The number of oil-directed rigs fell by 1 rig to 496 rigs. The Ardmore Woodford added three rigs, the Eagle Ford added one rig, and one rig was added among unspecified producing basins. The Cana Woodford dropped four rigs, and the Permian dropped two rigs. The total rig count, which includes 4 miscellaneous rigs, was unchanged at 600 rigs, 96 rigs fewer than one year ago.

Storage

• Net injections into storage totaled 98 Bcf for the week ending May 31, compared with the five-year (2019–2023) average net injections of 103 Bcf and last year's net injections of 105 Bcf during the same week. Working natural gas stocks totaled 2,893 Bcf, which is 581 Bcf (25%) more than the five-year average and 373 Bcf (15%) 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 79 Bcf to 97 Bcf, with a median estimate of 88 Bcf.
• The average rate of injections into storage is 8% 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 9.2 Bcf/d for the remainder of the refill season, the total inventory would be 4,293 Bcf on October 31, which is 581 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