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 $2.21 per million British thermal units (MMBtu) last Wednesday to $1.91/MMBtu yesterday.
• Henry Hub futures price: The price of the November 2024 NYMEX contract decreased 3 cents, from $2.367/MMBtu last Wednesday to $2.342/MMBtu yesterday. The price of the 12-month strip averaging November 2024 through October 2025 futures contracts rose 3 cents to $2.971/MMBtu.
• Select regional spot prices: Natural gas spot prices fell at most major pricing locations this report week (Wednesday, October 16, to Wednesday, October 23). Price changes ranged from a decrease of $1.17 at PG&E Citygate to an increase of 11 cents at the Houston Ship Channel.
• Prices decreased in the Northeast this report week. At the Algonquin Citygate, which serves Boston-area consumers, the price fell 18 cents from $2.08/MMBtu last Wednesday to $1.90/MMBtu yesterday. At the Transco Zone 6 NY trading point for New York City, the price decreased 8 cents from $1.91/MMBtu last Wednesday to $1.83/MMBtu yesterday. Temperatures in the Northeast rose more than 15°F from the beginning of the report week to the end of the week. In the New York-Central Park Area, the average temperature increased from 51°F last Thursday to 72°F on Tuesday, resulting in 28 heating degree days (HDDs) for the week, 27 fewer than the previous report week and 34 fewer than normal. Natural gas consumption in the residential and commercial sector in the Northeast decreased 18% (1.1 billion cubic feet per day [Bcf/d]) this report week, according to data from S&P Global Commodity Insights.
• In the Southeast, at FGT Citygate, which reflects deliveries of natural gas into Florida via the Florida Gas Transmission pipeline, the price decreased 29 cents from $2.59/MMBtu last Wednesday to $2.30/MMBtu yesterday. Average temperatures in the Orlando Area were unchanged this report week at 75°F, resulting in 69 cooling degree days (CDDs), 3 fewer CDDs than last week. Natural gas consumption in the electric power sector in the Southeast decreased by 2% (0.2 Bcf/d) this report week, according to S&P Global Commodity Insights.
• On the West Coast, price changes were mixed this report week. At PG&E Citygate in Northern California, the price fell $1.17 from $4.18/MMBtu last Wednesday to $3.01/MMBtu yesterday. The price at Malin, Oregon, the northern delivery point into the PG&E service territory, fell 11 cents from $2.28/MMBtu last Wednesday to $2.17/MMBtu yesterday. The price at SoCal Citygate in Southern California increased 7 cents from $2.39 last Wednesday to $2.46/MMBtu yesterday. Temperatures in the Riverside Area, east of Los Angeles, rose during the report week, from an average 66°F last Thursday to an average 75°F yesterday, resulting in 42 CDDs for the report week, 2 more CDDs than last week and 13 more than normal. Hotter weather in Southern California increased air-conditioning demand, leading to an increase in natural gas consumption in the electric power sector at the end of the report week. In addition, natural gas deliveries from the Rocky Mountain region to the Desert Southwest decreased by 13% (0.4 Bcf/d), according to data from S&P Global Commodity Insights. At Northwest Sumas on the Canada-Washington border, the main pricing point for natural gas in the Pacific Northwest, the price increased 3 cents from $1.98/MMBtu last Wednesday to $2.01/MMBtu yesterday. Natural gas consumption in the Pacific Northwest increased 15% (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 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 28 cents to a weekly average of $13.45/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands decreased 4 cents to a weekly average of $12.75/MMBtu. In the same week last year (week ending October 25, 2023), the prices were $18.21/MMBtu in East Asia and $15.65/MMBtu at TTF.
• Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 30 cents/MMBtu, averaging $7.28/MMBtu for the week ending October 23. Ethane prices fell 6% week over week, while weekly average natural gas prices at the Houston Ship Channel decreased 27%, widening the ethane premium to natural gas by 34%. The ethylene spot price fell 1% week over week, and the ethylene premium to ethane increased 1%. Propane prices decreased 2%, while Brent crude oil prices decreased 3% week over week. The propane discount to crude oil decreased 4% for the week. Normal butane and isobutane prices each fell 6%, 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 0.9% (1.0 Bcf/d) compared with the previous report week. Dry natural gas production remained unchanged at 101.5 Bcf/d, and average net imports from Canada decreased by 14.9% (1.0 Bcf/d) from last week.
• Demand: Total U.S. consumption of natural gas fell by 4.3% (3.1 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 5.7% (1.9 Bcf/d) week over week. Consumption in the industrial sector decreased by 0.4% (0.1 Bcf/d), and consumption in the residential and commercial sector decreased by 7.1% (1.1 Bcf/d). Natural gas exports to Mexico decreased by 0.7% (less than 0.1 Bcf/d). Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 13.7 Bcf/d, essentially unchanged from last week.

Liquefied Natural Gas (LNG)

• Pipeline receipts: Average natural gas deliveries to U.S. LNG export terminals were essentially unchanged this week at 13.7 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Louisiana decreased by 2.3% (0.2 Bcf/d) to 8.1 Bcf/d, while natural gas deliveries to terminals in South Texas were essentially unchanged at 4.4 Bcf/d. Natural gas deliveries to terminals outside the Gulf Coast increased 0.2 Bcf/d to 1.2 Bcf/d.
• Vessels departing U.S. ports: Twenty-seven LNG vessels (nine from Sabine Pass; four each from Cameron, Corpus Christi, and Freeport; and three each from Calcasieu Pass and Cove Point) with a combined LNG-carrying capacity of 101 Bcf departed the United States between October 17 and October 23, according to shipping data provided by Bloomberg Finance, L.P.

Rig Count

• According to Baker Hughes, for the week ending Tuesday, October 15, the natural gas rig count decreased by 2 rigs from a week ago to 99 rigs. The Haynesville dropped one rig, and one rig was dropped among unidentified producing regions. The number of oil-directed rigs increased by 1 rig from a week ago to 482 rigs, with the Cana Woodford adding 1 rig. The total rig count, which includes 4 miscellaneous rigs, now stands at 585 rigs, 39 fewer rigs than a year ago.

Storage

• Net injections into storage totaled 80 Bcf for the week ending October 18, compared with the five-year (2019–2023) average net injections of 76 Bcf and last year's net injections of 81 Bcf during the same week. Working natural gas stocks totaled 3,785 Bcf, which is 167 Bcf (5%) more than the five-year average and 106 Bcf (3%) 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 73 Bcf, with a median estimate of 66 Bcf.
• The average rate of injections into storage is 23% 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 7.3 Bcf/d for the remainder of the refill season, the total inventory would be 3,879 Bcf on October 31, which is 167 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