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 30 cents from $2.51 per million British thermal units (MMBtu) last Wednesday to $2.21/MMBtu yesterday.
• Henry Hub futures price: The June 2024 NYMEX contract expired yesterday at $2.493/MMBtu, down 35 cents from last Wednesday. The July 2024 NYMEX contract price decreased to $2.666/MMBtu, down 39 cents from last Wednesday to yesterday. The price of the 12-month strip averaging July 2024 through June 2025 futures contracts declined 24 cents to $3.129/MMBtu.
• Select regional spot prices: Natural gas spot price changes were mixed this report week (Wednesday, May 22 to Wednesday, May 29). Price changes ranged from a decrease of 57 cents at Transco Zone 6 New York to an increase of 30 cents at Florida Gas Transmission (FGT) Citygate.
• Prices in the Northeast declined this report week. At the Algonquin Citygate, which serves Boston-area consumers, the price fell 54 cents from $2.03/MMBtu last Wednesday to $1.49/MMBtu yesterday. At the Transcontinental Pipeline Zone 6 trading point for New York City, the price decreased 57 cents from $2.01/MMBtu last Wednesday to $1.44/MMBtu yesterday. Average temperatures in the Boston Area increased 8°F this week to a weekly average of 69°F, which is 8°F higher than normal. Similarly, in the New York-Central Park Area, average temperatures increased this week to 72°F, which is 6°F above normal. Average temperatures in the New York-Central Park Area reached a weekly high of 76°F on Friday, resulting in 11 cooling degree days (CDD), but the average temperature decreased to 68°F yesterday, resulting in 3 CDDs. According to data from S&P Global Commodity Insights, natural gas consumption in the residential and commercial sector in the Northeast decreased 6.8% (0.2 billion cubic feet per day [Bcf/d]) as heating demand decreased, but consumption in the electric power sector increased 6.9% (0.6 Bcf/d) as air-conditioning demand increased. Natural gas production in the Northeast increased this week by 2.3%, or 0.8 Bcf/d, according to data from S&P Global Commodity Insights.
• The price at FGT Citygate, the main pricing point for deliveries into Florida, increased 30 cents this report week from $3.78/MMBtu last Wednesday to $4.08/MMBtu yesterday and remains the highest-priced hub in the country. Average temperatures in the Orlando Area increased 3°F this week to 84°F, which is 5°F above normal. The average temperature reported for the Orlando Area yesterday reached 86.5°F, just 0.5°F below the all-time high set in 1973. Natural gas consumption in the electric power sector in the Atlantic Coast region, which includes Florida, increased 4.7% (0.3 Bcf/d) this week, according to data from S&P Global Commodity Insights.
• Prices in the West increased this report week but remain relatively low. The price at PG&E Citygate in Northern California rose 13 cents from $1.89/MMBtu last Wednesday to $2.02/MMBtu yesterday. The price at SoCal Citygate in Southern California increased 19 cents from $1.22/MMBtu last Wednesday to $1.41/MMBtu yesterday. The price at Sumas on the Canada-Washington border rose 25 cents from $0.78/MMBtu last Wednesday to $1.03/MMBtu yesterday. Net natural gas flows from Canada into the Western region decreased 11.9% (0.4 Bcf/d) this week. However, prices in the West remain relatively low in part because natural gas storage inventories in the Pacific region remain above their five-year (2019–2023) maximum level. Temperatures in the West are also mild for this time of year. Average temperatures in the Riverside Area inland from Los Angeles were 66°F this week resulting in 9 CDDs, 23 fewer CDDs than normal. The price at SoCal Citygate has averaged $1.56/MMBtu so far this May, 32% lower than the average price in May 2023. Similarly, the price at PG&E Citygate has averaged $2.29/MMBtu so far this May, 41% lower than in May 2023.

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 49 cents to a weekly average of $12.00/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands increased 66 cents to a weekly average of $10.86/MMBtu. In the same week last year (week ending May 31, 2023), the prices were $9.31/MMBtu in East Asia and $7.98/MMBtu at TTF.
• Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 10 cents/MMBtu, averaging $7.06/MMBtu for the week ending May 29. Ethane prices fell 4% week over week, while weekly average natural gas prices at the Houston Ship Channel decreased 5%, with the ethane premium to natural gas remaining unchanged. The ethylene spot price rose 1% week over week, and the ethylene premium to ethane increased 4%. Propane prices increased 5%, while Brent crude oil prices were relatively unchanged week over week. The propane discount to crude oil decreased 7% for the week. Normal butane prices rose 5%, isobutane prices rose 1%, and natural gasoline prices fell 1%.

Supply and Demand

• Supply: According to data from S&P Global Commodity Insights, the average total supply of natural gas rose by 0.5% (0.5 Bcf/d) compared with the previous report week. Dry natural gas production grew by 0.9% (0.9 Bcf/d) to 100.1 Bcf/d, and average net imports from Canada decreased by 7.9% (0.4 Bcf/d) from last week.
• Demand: Total U.S. consumption of natural gas rose by 1.5% (1.0 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 3.2% (1.1 Bcf/d), and industrial sector consumption decreased by 0.7% (0.1 Bcf/d) week over week. Consumption in the residential and commercial sector increased by 0.4% (less than 0.1 Bcf/d). Natural gas exports to Mexico increased 1.2% (0.1 Bcf/d). Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 13.0 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 13.0 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Louisiana were unchanged at 7.5 Bcf/d, while natural gas deliveries to terminals in South Texas increased 5.1% (0.2 Bcf/d) to 4.2 Bcf/d. Natural gas deliveries to terminals outside the Gulf Coast averaged 1.3 Bcf/d this week.
• Vessels departing U.S. ports: Twenty-six LNG vessels (eight from Sabine Pass; six from Freeport; four from Corpus Christi; three each from Calcasieu Pass and Cameron; and two from Cove Point) with a combined LNG-carrying capacity of 98 Bcf departed the United States between May 23 and May 29, according to shipping data provided by Bloomberg Finance, L.P.

Rig Count

• According to Baker Hughes, for the week ending Tuesday, May 21, the natural gas rig count decreased by 4 rigs from a week ago to 99 rigs, the first time the natural gas rig count has been under 100 rigs since October 2021. The Haynesville added one rig, the Marcellus dropped three rigs, the Utica dropped one rig, and one rig was dropped among unidentified producing regions. The number of oil-directed rigs was unchanged from a week ago at 497 rigs. The Cana Woodford and the Eagle Ford each dropped one rig, and two rigs were added among unidentified producing regions. The total rig count, which includes 4 miscellaneous rigs, now stands at 600 rigs, 111 fewer rigs than last year at this time.

Storage

• Net injections into storage totaled 84 Bcf for the week ending May 24, compared with the five-year (2019–2023) average net injections of 104 Bcf and last year's net injections of 106 Bcf during the same week. Working natural gas stocks totaled 2,795 Bcf, which is 586 Bcf (27%) more than the five-year average and 380 Bcf (16%) 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 71 Bcf to 86 Bcf, with a median estimate of 79 Bcf.

See also:

• Natural Gas Analysis Reports
• Short-Term Energy Outlook