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 60 cents from $3.89 per million British thermal units (MMBtu) last Wednesday to $3.29/MMBtu yesterday.
• Henry Hub futures price: The February 2025 NYMEX contract expired yesterday at $3.535/MMBtu, down 43 cents from last Wednesday. The March 2025 NYMEX contract price decreased to $3.170/MMBtu, down 34 cents from last Wednesday to yesterday. The price of the 12-month strip averaging March 2025 through February 2026 futures contracts declined 25 cents to $3.813/MMBtu.
• Select regional spot prices: Natural gas spot prices fell at all major pricing locations this report week (Wednesday, January 22, to Wednesday, January 29). Price decreases ranged from $13.97 at Transco Zone 6 NY to 3 cents at PG&E Citygate.
• Prices decreased in the Northeast this report week as temperatures moderated in the region. At the Algonquin Citygate, which serves Boston-area consumers, the price fell $2.45 from $18.99/MMBtu last Wednesday to $16.54/MMBtu yesterday. The Algonquin Citygate price remains the highest among markets in North America because of continuing supply constraints, which affect New England in the winter during times of high demand for space heating. Weekly average temperatures in the Boston Area have been below freezing since January 8. Temperatures in the Boston Area averaged 30°F this report week, resulting in 246 heating degree days (HDDs), 25 fewer HDDs than last week. At the Transco Zone 6 NY trading point for New York City, the price decreased $13.97 from $17.54/MMBtu last Wednesday to $3.57/MMBtu yesterday. Temperatures in the New York-Central Park Area averaged 33°F this report week, close to normal but 7°F above the previous week, resulting in 43 fewer HDDs than last week. Natural gas consumption in the Northeast decreased by 13% (4.8 billion cubic feet per day [Bcf/d]) this report week, led by a 15% (3.3 Bcf/d) decrease in consumption in the residential and commercial sector, according to S&P Global Commodity Insights. Natural gas production in the region increased by 2% (0.7 Bcf/d) to an average 34.8 Bcf/d.
• In the Southeast, prices fell this report week. The FGT Citygate price, which reflects deliveries of natural gas into Florida via the Florida Gas Transmission pipeline, decreased $11.80 from $15.44/MMBtu last Wednesday to $3.64/MMBtu yesterday. Temperatures in the Tallahassee Area averaged 65°F, or 20°F above the previous report week and 12°F above normal, resulting in 23 HDDs, 117 fewer HDDs than last week. Natural gas consumption decreased by 7% (1.7 Bcf/d), led by a 15% (0.9 Bcf/d) decrease in consumption in the residential and commercial sector, according to data from S&P Global Commodity Insights.
• Prices on the West Coast decreased this report week. The price at SoCal Citygate in Southern California decreased 22 cents from $4.28/MMBtu last Wednesday to $4.06/MMBtu yesterday. At PG&E Citygate in Northern California, the price fell 3 cents from $3.72/MMBtu last Wednesday to $3.69/MMBtu yesterday. At Northwest Sumas on the Canada-Washington border, the main pricing point for natural gas in the Pacific Northwest, the price decreased 29 cents from $3.58/MMBtu last Wednesday to $3.29/MMBtu yesterday. Natural gas consumption in the Western region was essentially unchanged this report week, according to data from S&P Global Commodity Insights. In addition, natural gas storage inventories in the Pacific region for the week ending January 24 totaled 246 Bcf, 17% above the five-year (2020–2024) average.
• The price at the Waha Hub in Texas, which is located near Permian Basin production activities, decreased 61 cents from $2.96/MMBtu last Wednesday to $2.35/MMBtu yesterday. The Waha Hub traded 94 cents below the Henry Hub price yesterday, compared with last Wednesday when it traded 93 cents below the Henry Hub price. The Waha Hub price has traded above zero since January 1 compared with trading below zero on 36% of the trading days in the fourth quarter of 2024. Additional pipeline takeaway capacity from the Permian region came online in October 2024 with the start of the 2.5 Bcf/d Matterhorn Express Pipeline.

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 6 cents to a weekly average of $14.08/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands increased 52 cents to a weekly average of $15.08/MMBtu. In the same week last year (week ending January 31, 2024), the prices were $9.42/MMBtu in East Asia and $9.13/MMBtu at TTF.
• Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 40 cents/MMBtu, averaging $8.11/MMBtu for the week ending January 29. Ethane prices fell 7% week over week, while weekly average natural gas prices at the Houston Ship Channel decreased 37%. The ethane premium to natural gas increased by 249% after the average natural gas price fell below the average ethane price this week. The ethylene spot price fell 1% week over week, and the ethylene premium to ethane increased 2%. Propane prices decreased 5%, while Brent crude oil prices decreased 3% week over week. The propane discount to crude oil widened 2% for the week. Normal butane prices, isobutane prices, and natural gasoline prices each fell by 3%.

Supply and Demand

• Supply: According to data from S&P Global Commodity Insights, the average total supply of natural gas rose by 0.3% (0.3 Bcf/d) compared with the previous report week. Dry natural gas production grew by 2.6% (2.6 Bcf/d) to average 103.5 Bcf/d, and average net imports from Canada decreased by 22.1% (1.9 Bcf/d) from last week.
• Demand: Total U.S. consumption of natural gas fell by 12.2% (15.5 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 declined by 17.2% (10.3 Bcf/d) as warmer weather spread across much of the United States. Natural gas consumed for power generation declined by 9.8% (3.9 Bcf/d), and consumption in the industrial sector decreased by 4.7% (1.3 Bcf/d) week over week. Natural gas exports to Mexico decreased 2.5% (0.2 Bcf/d). Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 13.7 Bcf/d, or 1.1 Bcf/d lower than last week.

Liquefied Natural Gas (LNG)

• Pipeline receipts: Average natural gas deliveries to U.S. LNG export terminals decreased 1.1 Bcf/d from last week to 13.7 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Louisiana decreased 6.3% (0.6 Bcf/d) to 9.2 Bcf/d, and natural gas deliveries to terminals in South Texas decreased by 19.1% (0.8 Bcf/d) to 3.3 Bcf/d. Liquefaction production operations at Freeport LNG, south of Houston, were offline early in the report week due to intermittent power disruptions and resumed over the weekend. Natural gas deliveries to terminals outside the Gulf Coast increased 34.9% (0.3 Bcf/d) to 1.2 Bcf/d this week.
• Vessels departing U.S. ports: Twenty-four LNG vessels (eight from Sabine Pass; six from Cameron; three from Calcasieu Pass; two each from Corpus Christi, Cove Point, and Plaquemines; and one from Freeport) with a combined LNG-carrying capacity of 90 Bcf departed the United States between January 23 and January 29, according to shipping data provided by Bloomberg Finance, L.P.
• Vessels arriving at U.S. Ports: One LNG vessel with a carrying capacity of 3 Bcf docked for off-loading at the Everett LNG Terminal in Boston Harbor in Massachusetts this month and departed the terminal between January 23 and January 28, according to shipping data provided by Bloomberg Finance, L.P.

Rig Count

• According to Baker Hughes, for the week ending Tuesday, January 21, the natural gas rig count increased by 1 rig from a week ago to 99 rigs, as 1 rig was added among unidentified producing regions. The number of oil-directed rigs decreased by 6 rigs from a week ago to 472 rigs. The Eagle Ford added one rig, and one rig was added among unidentified producing regions. The Barnett and the Cana Woodford each dropped one rig, and the Permian dropped six rigs. The total rig count, which includes 5 miscellaneous rigs, now stands at 576 rigs, 45 fewer rigs than last year at this time.

Storage

• Net withdrawals from storage totaled 321 Bcf for the week ending January 24, compared with the five-year (2020–24) average net withdrawals of 189 Bcf and last year's net withdrawals of 234 Bcf during the same week. This is the fourth-largest withdrawal on record. Working natural gas stocks totaled 2,571 Bcf, which is 111 Bcf (4%) lower than the five-year average and 144 Bcf (5%) lower 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 298 Bcf to 340 Bcf, with a median estimate of 313 Bcf.
• The average rate of withdrawals from storage is 31% higher than the five-year average so far in the withdrawal season (November through March). If the rate of withdrawals from storage matched the five-year average of 12.5 Bcf/d for the remainder of the withdrawal season, the total inventory would be 1,749 Bcf on March 31, which is 111 Bcf lower than the five-year average of 1,860 Bcf for that time of year.

See also:

• Natural Gas Analysis Reports
• Short-Term Energy Outlook