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 38 cents from $1.88 per million British thermal units (MMBtu) last Wednesday to $1.50/MMBtu yesterday.
• Henry Hub futures price: The price of the May 2024 NYMEX contract decreased 17.3 cents, from $1.885/MMBtu last Wednesday to $1.712/MMBtu yesterday. The price of the 12-month strip averaging May 2024 through April 2025 futures contracts declined 5.9 cents to $2.769/MMBtu.
• Select regional spot prices: Natural gas spot prices fell at most locations this report week (Wednesday, April 10 to Wednesday, April 17). Price changes ranged from a decrease of 38 cents at the Henry Hub to an increase of 84 cents at the Waha Hub.
• Prices in the Northeast decreased slightly this report week, driven by moderating temperatures and lower natural gas consumption. At the Algonquin Citygate, which serves Boston-area consumers, the price fell 8 cents from $1.54/MMBtu last Wednesday to $1.46/MMBtu yesterday. The price at Eastern Gas South in southwestern Pennsylvania, close to Appalachian Basin production activities, fell 10 cents from $1.39/MMBtu last Wednesday to $1.29/MMBtu yesterday. Average temperatures in the Boston Area increased 9°F this report week to an average of 53°F, resulting in 80 heating degree days (HDD), 60 fewer HDDs than last week. Similarly, temperatures in the Pittsburgh Area averaged 62°F this report week, an increase of 11°F from last week. Consumption of natural gas in the residential and commercial sector in the Northeast decreased 40.2%, or 3.3 billion cubic feet per day (Bcf/d), this report week, according to data from S&P Global Commodity Insights.
• The price at the Waha Hub in West Texas, which is located near Permian Basin production activities, rose 84 cents this report week, from -$2.02/MMBtu last Wednesday to -$1.18/MMBtu yesterday. The Waha Hub traded $2.68 below the Henry Hub price yesterday, compared with last Wednesday when it traded $3.90 below the Henry Hub price. Production of natural gas in West Texas decreased 2.2% (0.3 Bcf/d) this report week, according to data from S&P Global Commodity Insights. Other than on March 28 and April 1, the price at the Waha Hub has been negative since mid-March because pipeline maintenance has constrained the flow of natural gas moving out of the region.
• Price changes in the West were mixed this report week. The price at Sumas on the Canada-Washington border, the main pricing point for natural gas in the Pacific Northwest, fell 17 cents from $1.37/MMBtu last Wednesday to $1.20/MMBtu yesterday. The price at PG&E Citygate in Northern California fell 31 cents, down from $2.47/MMBtu last Wednesday to $2.16/MMBtu yesterday. The price at SoCal Citygate in Southern California increased 11 cents from $2.00/MMBtu last Wednesday to $2.11/MMBtu yesterday. Maintenance on the Redwood Path segment of the California Gas Transmission pipeline system that delivers natural gas into Northern California concluded yesterday, increasing maximum capacity on the pipeline from 80.8% to 91.5%. The reduction of pipeline capacity resulting from maintenance on the North Mainline segment of the El Paso Natural Gas Company pipeline that delivers natural gas from West Texas to Southern California via the Desert Southwest increased 1.2 Bcf/d from 0.1 Bcf/d to 1.3 Bcf/d on Tuesday.

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 62 cents to a weekly average of $10.19/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands increased $1.15/MMBtu to a weekly average of $9.73/MMBtu. In the same week last year (week ending April 19, 2023), the prices were $12.56/MMBtu in East Asia and $13.35/MMBtu at TTF.
• Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 28 cents/MMBtu, averaging $7.42/MMBtu for the week ending April 17. Ethane prices fell 1% week over week, while weekly average natural gas prices at the Houston Ship Channel decreased 17%, widening the ethane premium to natural gas by 19%. The ethylene spot price rose 1% week over week, and the ethylene premium to ethane rose 3%. Propane prices fell 4%, the Brent crude oil prices fell 1%, and the propane discount to crude oil increased by 4%. Normal butane and isobutane prices each fell 7%, and natural gasoline prices remained relatively unchanged.

Supply and Demand

• Supply: According to data from S&P Global Commodity Insights, the average total supply of natural gas fell by 1.5% (1.6 Bcf/d) compared with the previous report week. Dry natural gas production decreased by 0.8% (0.8 Bcf/d) to average 99.4 Bcf/d, and average net imports from Canada decreased by 15.2% (0.8 Bcf/d) from last week.
• Demand: Total U.S. consumption of natural gas fell by 10.7% (8.2 Bcf/d) compared with the previous report week, according to data from S&P Global Commodity Insights. Residential and commercial sector consumption declined by 36.4% (8.4 Bcf/d), and industrial sector consumption decreased by 2.5% (0.6 Bcf/d) week over week. Natural gas consumed for power generation rose by 2.6% (0.8 Bcf/d) week over week. Natural gas exports to Mexico were flat, and natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 10.9 Bcf/d, or 1.7 Bcf/d lower than last week.

Liquefied Natural Gas (LNG)

• Pipeline receipts: Average natural gas deliveries to U.S. LNG export terminals decreased by 13.4% (1.7 Bcf/d) week over week, averaging 10.9 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Louisiana decreased by 4.8% (0.4 Bcf/d) to 7.9 Bcf/d, while natural gas deliveries to terminals in South Texas decreased 42.8% (1.3 Bcf/d) to 1.7 Bcf/d. Scheduled volumes of natural gas at the Stratton Ridge delivery location for Freeport LNG on the Gulf South pipeline have been close to 0 Bcf/d since Friday, April 12. Natural gas deliveries to terminals outside the Gulf Coast were essentially unchanged at 1.3 Bcf/d.
• Vessels departing U.S. ports: Twenty-one LNG vessels (eight from Sabine Pass; four each from Cameron and Corpus Christi; two each from Calcasieu Pass and Cove Point; and one from Freeport) with a combined LNG-carrying capacity of 79 Bcf departed the United States between April 11 and April 17, according to shipping data provided by Bloomberg Finance, L.P.

Rig Count

• According to Baker Hughes, for the week ending Tuesday, April 9, the natural gas rig count decreased by 1 rig from a week ago to 109 rigs as the Utica dropped 1 rig. The number of oil-directed rigs decreased by 2 rigs from a week ago to 506 rigs. The Ardmore Woodford, Granite Wash, and Utica each added one rig, while the Cana Woodford dropped two rigs and the Eagle Ford, Mississippian, and Permian each dropped one rig. The total rig count, which includes 2 miscellaneous rigs, now stands at 617 rigs, 131 fewer rigs than last year at this time.

Storage

• Net injections into storage totaled 50 Bcf for the week ending April 12, compared with the five-year (2019–2023) average net injections of 61 Bcf and last year's net injections of 61 Bcf during the same week. Working natural gas stocks totaled 2,333 Bcf, which is 622 Bcf (36%) more than the five-year average and 424 Bcf (22%) 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 61 Bcf, with a median estimate of 51 Bcf.

See also:

• Natural Gas Analysis Reports
• Short-Term Energy Outlook