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 67 cents from $3.76 per million British thermal units (MMBtu) last Wednesday to $4.43/MMBtu yesterday.
• Henry Hub futures price: The price of the February 2025 NYMEX contract increased 43 cents, from $3.651/MMBtu last Wednesday to $4.083/MMBtu yesterday. The last time the front month contract settled above $4.00/MMBtu was on January 4, 2023, when it settled at $4.172/MMBtu. The price of the 12-month strip averaging February 2025 through January 2026 futures contracts climbed 29 cents to $3.967/MMBtu.
• Select regional spot prices: Natural gas spot prices rose at most locations this report week (Wednesday, January 8, to Wednesday, January 15). Price changes ranged from a decrease of $5.00 at Transco Zone 6 NY to an increase of $1.14 at PG&E Citygate.
• Prices decreased in the Northeast this report week as warmer weather moved into the region. At the Algonquin Citygate, which serves Boston-area consumers, the price fell $1.80 from $16.55/MMBtu last Wednesday to $14.75/MMBtu yesterday. At the Transco Zone 6 NY trading point for New York City, the price decreased $5.00 from $11.50/MMBtu last Wednesday to $6.50/MMBtu yesterday. Temperatures in the New York-Central Park Area rose during the week, averaging 27°F last Wednesday and rising to an intraweek average high of 38°F on Monday before falling to 28°F at the end of the report week. Natural gas consumption decreased by 2% (0.2 billion cubic feet per day [Bcf/d]) in the New York and New Jersey area, according to S&P Global Commodity Insights. Average temperatures in the Boston Area followed a similar pattern, increasing from 24°F to 27°F this report week, with intraweek highs of 34°F on both Friday and Monday.
• At Northwest Sumas on the Canada-Washington border, the main pricing point for natural gas in the Pacific Northwest, the price rose $1.02 from $3.28/MMBtu last Wednesday to $4.30/MMBtu yesterday. The average temperature in the Seattle City Area fell 4°F this report week, resulting in 163 heating degree days (HDD), 21 HDDs more than last week. Natural gas consumption in the Pacific Northwest rose 10% (0.3 Bcf/d) this report week, according to data from S&P Global Commodity Insights.
• Prices increased in California this report week in advance of colder weather moving into the northern part of the state. The price at PG&E Citygate in Northern California rose $1.14 from $3.55/MMBtu last Wednesday to $4.69/MMBtu yesterday. In the Sacramento Area, low temperatures were near 32°F at the end of the report week and continued cold weather is expected for the area. The price at SoCal Citygate in Southern California increased 90 cents from $4.02/MMBtu last Wednesday to $4.92/MMBtu yesterday. Customers in Southern California remain affected this week by Public Safety Power Shutoffs while the wildfires remain active, according to Southern California Edison and San Diego Gas and Electric. On January 15, nearly 125,000 people were reported without power in Southern California.
• In Texas, prices rose this report week as demand for natural gas increased. The Houston Ship Channel price rose 71 cents from $3.51/MMBtu last Wednesday to $4.22/MMBtu yesterday. Average temperatures in the Houston Area fell 5°F this report week, leading to 134 HDDs, 48 HDDs more than normal. Natural gas consumption in the residential and commercial sector in Texas increased 18% (0.5 Bcf/d) this report week, and natural gas exports from Texas to Mexico increased 11% (0.6 Bcf/d), according to 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 15 cents to a weekly average of $14.15/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands decreased 55 cents to a weekly average of $14.00/MMBtu. In the same week last year (week ending January 17, 2024), the prices were $10.51/MMBtu in East Asia and $9.62/MMBtu at TTF.
• Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 25 cents/MMBtu, averaging $8.38/MMBtu for the week ending January 15. Ethane prices rose 2% week over week, while weekly average natural gas prices at the Houston Ship Channel increased 13%, narrowing the ethane premium to natural gas by 55%. The ethylene spot price rose 8% week over week, and the ethylene premium to ethane increased 11%. Propane prices increased 6%, while Brent crude oil prices increased 5% week over week. The propane discount to crude oil widened 1% for the week. Normal butane prices rose 1%, isobutane prices decreased 1%, and natural gasoline prices rose 2%.

Supply and Demand

• Supply: According to data from S&P Global Commodity Insights, the average total supply of natural gas fell by 0.8% (0.9 Bcf/d) compared with the previous report week. Dry natural gas production decreased by 0.9% (1.0 Bcf/d) to average 102.4 Bcf/d, and average net imports from Canada increased by 1.3% (0.1 Bcf/d) from last week.
• Demand: Total U.S. consumption of natural gas rose by 1.3% (1.6 Bcf/d) compared with the previous report week, according to data from S&P Global Commodity Insights. Natural gas consumption in the residential and commercial sector increased by 3.1% (1.6 Bcf/d). Natural gas consumed for power generation declined by 0.3% (0.1 Bcf/d) while consumption in the industrial sector increased by 0.2% (less than 0.1 Bcf/d) week over week. Natural gas exports to Mexico increased 10.0% (0.6 Bcf/d). Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 15.4 Bcf/d, or 0.3 Bcf/d higher than last week.

Liquefied Natural Gas (LNG)

• Pipeline receipts: Average natural gas deliveries to U.S. LNG export terminals increased 0.3 Bcf/d from last week to 15.4 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Louisiana increased by 6.7% (0.6 Bcf/d) to 9.8 Bcf/d, while natural gas deliveries to terminals in South Texas decreased by 8.0% (0.4 Bcf/d) to 4.4 Bcf/d. Natural gas deliveries to terminals outside the Gulf Coast were essentially unchanged at 1.2 Bcf/d this week.
• Vessels departing U.S. ports: Twenty-nine LNG vessels (nine from Sabine Pass; five from Freeport; four each from Cameron and Corpus Christi; two each from Calcasieu Pass, Cove Point, and Elba Island; and one from Plaquemines) with a combined LNG-carrying capacity of 110 Bcf departed the United States between January 9 and January 15, according to shipping data provided by Bloomberg Finance, L.P.

Rig Count

• According to Baker Hughes, for the week ending Tuesday, January 7, the natural gas rig count decreased by 3 rigs from a week ago to 100 rigs. The Eagle Ford dropped two rigs, the Marcellus dropped one rig, and one rig was dropped among unidentified producing regions, while the Utica added one rig. The number of oil-directed rigs decreased by 2 rigs from a week ago to 480 rigs. The DJ-Niobrara dropped one rig, and one rig was dropped among unidentified producing regions. The total rig count, which includes 4 miscellaneous rigs, now stands at 584 rigs, 35 fewer rigs than last year at this time.

Storage

• Net withdrawals from storage totaled 258 Bcf for the week ending January 10, compared with the five-year (2020–24) average net withdrawals of 128 Bcf and last year's net withdrawals of 150 Bcf during the same week. Working natural gas stocks totaled 3,115 Bcf, which is 77 Bcf (3%) more than the five-year average and 111 Bcf (3%) 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 235 Bcf to 281 Bcf, with a median estimate of net withdrawals of 259 Bcf.
• The average rate of withdrawals from storage is 20% 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 14.7 Bcf/d for the remainder of the withdrawal season, the total inventory would be 1,937 Bcf on March 31, which is 77 Bcf higher than the five-year average of 1,860 Bcf for that time of year.

See also:

• Natural Gas Analysis Reports
• Short-Term Energy Outlook