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 28 cents from $2.83 per million British thermal units (MMBtu) last Wednesday to $3.11/MMBtu yesterday.
• Henry Hub futures price: The price of the January 2025 NYMEX contract increased 34 cents, from $3.043/MMBtu last Wednesday to $3.378/MMBtu yesterday. The price of the 12-month strip averaging January 2025 through December 2025 futures contracts rose 12 cents to $3.282/MMBtu.
• Select regional spot prices: Natural gas spot prices rose at most major pricing locations along with the Henry Hub this report week (Wednesday, December 4, to Wednesday, December 11). Price changes ranged from a decrease of 38 cents at Northwest Sumas to an increase of $1.86 at Algonquin Citygate.
• Prices increased in the Northeast this report week in advance of colder weather moving into the region. At the Algonquin Citygate, which serves Boston-area consumers, the price rose $1.86 from $10.04/MMBtu last Wednesday to $11.90/MMBtu yesterday. At the Transco Zone 6 NY trading point for New York City, the price increased 79 cents from $3.30/MMBtu last Wednesday to $4.09/MMBtu yesterday. Tennessee Gas Pipeline reported a force majeure at a compressor station near Charlton City, Massachusetts, on the pipeline segment that moves natural gas eastbound to the Boston area. Repairs, which began December 10 and are estimated to last up to three days, reduced available pipeline capacity by about 21% (0.2 billion cubic feet per day [(Bcf/d]). The price at Eastern Gas South near Appalachian Basin production activities rose 30 cents from $2.55/MMBtu last Wednesday to $2.85/MMBtu yesterday. Natural gas deliveries from the Appalachia region to the Southern Corridor rose 20% (1.1 Bcf/d).
• Price changes on the West Coast were mixed this report week. The price at SoCal Citygate in Southern California increased 12 cents from $3.69/MMBtu last Wednesday to $3.81/MMBtu yesterday. Maintenance on El Paso Natural Gas Company’s North Mainline reduced available pipeline capacity for delivery of natural gas westbound out of the Permian production region by an additional 0.4 Bcf/d yesterday, resulting in a 27% reduction in total available capacity on that segment. At PG&E Citygate in Northern California, the price fell 17 cents from $3.79/MMBtu last Wednesday to $3.62/MMBtu yesterday. At Northwest Sumas on the Canada-Washington border, the main pricing point for natural gas in the Pacific Northwest, the price fell 38 cents from $3.85/MMBtu last Wednesday to $3.47/MMBtu yesterday. Temperatures in the Seattle City Area averaged 43°F this week, resulting in 151 heating degree days (HDDs), 24 fewer HDDs than the previous report week and 8 fewer than normal. Natural gas consumption in the Pacific Northwest decreased by 4% (0.1 Bcf/d), according to S&P Global Commodity Insights, while natural gas imports from Canada into the Pacific Northwest increased by 12% (0.5 Bcf/d).
• In Texas, prices rose this report week. The Houston Ship Channel price increased 23 cents from $2.59/MMBtu last Wednesday to $2.82/MMBtu yesterday. The price at the Waha Hub in West Texas, which is located near Permian Basin production activities, increased 6 cents from $2.45/MMBtu last Wednesday to $2.51/MMBtu yesterday. The Waha Hub traded 60 cents below the Henry Hub price yesterday, compared with last Wednesday when it traded 38 cents below the Henry Hub price. Natural gas exports to Mexico from Texas increased 7% (0.4 Bcf/d) this week, 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 2 cents to a weekly average of $15.04/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands decreased 71 cents to a weekly average of $14.11/MMBtu. In the same week last year (week ending December 13, 2023), the prices were $15.77/MMBtu in East Asia and $11.73/MMBtu at TTF.
• Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 22 cents/MMBtu, averaging $7.32/MMBtu for the week ending December 11. Ethane prices fell 6% week over week, while weekly average natural gas prices at the Houston Ship Channel increased 3%, narrowing the ethane premium to natural gas by 30%. The ethylene spot price rose 8% week over week, and the ethylene premium to ethane increased 15%. Propane prices decreased 4%, and Brent crude oil prices decreased 1% week over week, widening the propane discount to crude oil by 7%. Normal butane, isobutane, and natural gasoline prices were essentially unchanged this week.

Supply and Demand

• Supply: According to data from S&P Global Commodity Insights, the average total supply of natural gas rose by 0.6% (0.6 Bcf/d) compared with the previous report week. Dry natural gas production grew by 0.6% (0.6 Bcf/d) to average 103.8 Bcf/d, and average net imports from Canada increased by 0.6% (less than 0.1 Bcf/d) from last week.
• Demand: Total U.S. consumption of natural gas fell by 6.8% (7.3 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 decreased by 12.9% (5.8 Bcf/d) week over week, as average temperatures across much of the country were higher than normal. Natural gas consumed for power generation declined by 2.7% (1.0 Bcf/d), and consumption in the industrial sector decreased by 2.0% (0.5 Bcf/d). Natural gas exports to Mexico increased 6.1% (0.4 Bcf/d). Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 14.2 Bcf/d, or 0.3 Bcf/d lower than last week.

Liquefied Natural Gas (LNG)

• Pipeline receipts: Average natural gas deliveries to U.S. LNG export terminals decreased 0.3 Bcf/d from last week to 14.2 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Louisiana decreased by 4.0% (0.3 Bcf/d) to 8.4 Bcf/d, while natural gas deliveries to terminals in South Texas increased by 0.4% (less than 0.1 Bcf/d) to 4.6 Bcf/d. Natural gas deliveries to terminals outside the Gulf Coast were essentially unchanged at 1.2 Bcf/d.
• Vessels departing U.S. ports: Twenty-seven LNG vessels (eight from Sabine Pass; four each from Cameron, Freeport, and Cove Point; three each from Corpus Christi and Calcasieu Pass; and one from Elba Island) with a combined LNG-carrying capacity of 102 Bcf departed the United States between December 5 and December 11, according to shipping data provided by Bloomberg Finance, L.P.

Rig Count

• According to Baker Hughes, for the week ending Tuesday, December 3, the natural gas rig count increased by 2 rigs from a week ago to 102 rigs. The Marcellus added one rig, and two rigs were added among unidentified producing regions; the Utica dropped one rig. The number of oil-directed rigs increased by 5 rigs from a week ago to 482 rigs. The Granite Wash added two rigs, the Permian and Williston each added one rig, and two rigs were added among unidentified producing regions. The Cana Woodford dropped one rig. The total rig count, which includes 5 miscellaneous rigs, now stands at 589 rigs, 37 fewer rigs than last year at this time.

Storage

• Net withdrawals from storage totaled 190 Bcf for the week ending December 6, compared with the five-year (2019–2023) average net withdrawals of 71 Bcf and last year's net withdrawals of 72 Bcf during the same week. Working natural gas stocks totaled 3,747 Bcf, which is 165 Bcf (5%) more than the five-year average and 67 Bcf (2%) 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 withdrawals of 144 Bcf to 212 Bcf, with a median estimate of 175 Bcf.

See also:

• Natural Gas Analysis Reports
• Short-Term Energy Outlook