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 2 cents from $1.86 per million British thermal units (MMBtu) last Wednesday to $1.88/MMBtu yesterday.
• Henry Hub futures price: The price of the May 2024 NYMEX contract increased 4.4 cents, from $1.841/MMBtu last Wednesday to $1.885/MMBtu yesterday. The price of the 12-month strip averaging May 2024 through April 2025 futures contracts rose 1 cent to $2.829/MMBtu.
• Select regional spot prices: Natural gas spot prices fell at all major pricing hubs this report week (Wednesday, April 4 to Wednesday, April 10), going against the trend at the Henry Hub. Price changes ranged from a decrease of $2.00 at the Waha Hub to a decrease of 4 cents at PG&E Citygate.
• Natural gas prices in the Northeast decreased this report week. At the Algonquin Citygate, which serves Boston-area consumers, the price went down 55 cents from $2.09/MMBtu last Wednesday to $1.54/MMBtu yesterday. At the Transcontinental Pipeline Zone 6 trading point for New York City, the price decreased 38 cents from $1.80/MMBtu last Wednesday to $1.42/MMBtu yesterday. Natural gas consumption in the residential and commercial sector in the Northeast decreased 7% (0.6 billion cubic feet per day [Bcf/d]), according to data from S&P Global Commodity Insights, and most of the decline (0.4 Bcf/d) was in the New York and New Jersey area. Temperatures in the New York-Central Park Area averaged 53°F this report week, 4°F higher than last week, which resulted in 86 heating degree days (HDD), 22 fewer HDDs than last week. The New York-Central Park area also registered three cooling degree days (CDD) yesterday, the first CDDs of the year.
• Prices across the West Coast declined this week, although prices in California continue to be among the highest in the country. The price at PG&E Citygate in Northern California fell 4 cents, down from $2.51/MMBtu last Wednesday to $2.47/MMBtu yesterday. The price at SoCal Citygate in Southern California decreased 11 cents from $2.11/MMBtu last Wednesday to $2.00/MMBtu yesterday. Natural gas consumption in California increased 6% (0.4 Bcf/d), according to data from S&P Global Commodity Insights, driven by a 16% (0.4 Bcf/d) increase in residential and commercial sector consumption. Temperatures in northern California were unseasonably cool at the start of the report week. In the Sacramento Area, the temperature averaged below 50°F Thursday through Sunday, almost 10°F below normal and the lowest since early February. At Northwest Sumas on the Canada-Washington border, the main pricing point for natural gas in the Pacific Northwest, the price fell 8 cents from $1.45/MMBtu last Wednesday to $1.37/MMBtu yesterday.
• Natural gas prices declined across Texas this week. At the Houston Ship Channel, the price fell 16 cents from $1.42/MMBtu last Wednesday to $1.26/MMBtu yesterday. The Houston Ship Channel price reached an intra-week low of $0.86/MMBtu on Friday, April 5, the lowest price in nominal terms since at least 1993, according to data from Natural Gas Intelligence. The price at the Waha Hub, which is located near Permian Basin production activities, fell $2.00 this report week, from -$0.02/MMBtu last Wednesday to -$2.02/MMBtu yesterday, the lowest price since January 13, 2023, when it reached -$2.52/MMBtu. From March 1 through yesterday the Waha Hub price has been below zero on 21 trading days out of 28, or 75% of the time. Maintenance on El Paso Natural Gas Company’s pipeline system, which delivers natural gas westbound from the Permian Basin to the Desert Southwest, at the Waha compressor station in Pecos County, Texas, caused a reduction in available pipeline capacity of 0.6 Bcf/d from April 9 through April 12. In addition, Kinder Morgan, operator of the Gulf Coast Express Pipeline, a 2 Bcf/d pipeline that delivers natural gas southbound from the Permian Basin to the Agua Dulce, Texas area, reported a reduction in throughput capacity of approximately 0.4 Bcf/d from Tuesday, April 9 through Thursday, May 2.

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 6 cents to a weekly average of $9.57/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands increased 17 cents to a weekly average of $8.58/MMBtu. In the same week last year (week ending April 12, 2023), the prices were $12.61/MMBtu in East Asia and $13.84/MMBtu at TTF.
• Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 7 cents/MMBtu, averaging $7.70/MMBtu for the week ending April 10. Ethane prices rose 2% week over week, while weekly average natural gas prices at the Houston Ship Channel were relatively unchanged, widening the ethane premium to natural gas by 1%. The ethylene spot price rose 1% week over week, and the ethylene premium to ethane rose 1%. Propane prices remained relatively unchanged, while Brent crude oil prices rose 2%, and the propane discount to crude oil increased by 6%. Normal butane prices rose 2%, and isobutane and natural gasoline prices each rose 1%.

Supply and Demand

• Supply: According to data from S&P Global Commodity Insights, the average total supply of natural gas fell by 0.1% (0.1 Bcf/d) compared with the previous report week. Dry natural gas production decreased by 0.6% (0.6 Bcf/d) to average 100.3 Bcf/d, and average net imports from Canada increased by 10.9% (0.5 Bcf/d) from last week.
• Demand: Total U.S. consumption of natural gas fell by 2.4% (1.9 Bcf/d) compared with the previous report week, according to data from S&P Global Commodity Insights. Residential and commercial sector consumption declined by 6.0% (1.5 Bcf/d) week over week. Natural gas consumed for power generation declined by 0.7% (0.2 Bcf/d), and industrial sector consumption decreased by 1.0% (0.2 Bcf/d). Natural gas exports to Mexico increased 1.4% (0.1 Bcf/d), and natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 12.6 Bcf/d, or 0.1 Bcf/d higher than last week.

Liquefied Natural Gas (LNG)

• Pipeline receipts: Average natural gas deliveries to U.S. LNG export terminals increased by 1.2% (0.1 Bcf/d) week over week, averaging 12.6 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Louisiana decreased by 0.9% (0.1 Bcf/d) to 8.3 Bcf/d, while natural gas deliveries to terminals in South Texas increased 6.8% (0.2 Bcf/d) to 3.0 Bcf/d. Natural gas deliveries to terminals outside the Gulf Coast increased 2.3% (less than 0.1 Bcf/d) to 1.3 Bcf/d.
• Vessels departing U.S. ports: Twenty-two LNG vessels (eight from Sabine Pass; three each from Calcasieu Pass, Cameron, and Corpus Christi; two each from Elba Island and Freeport; and one from Cove Point) with a combined LNG-carrying capacity of 75 Bcf departed the United States between April 4 and April 10, according to shipping data provided by Bloomberg Finance, L.P.

Rig Count

• According to Baker Hughes, for the week ending Tuesday, April 2, the natural gas rig count decreased by 2 rigs from a week ago to 110 rigs. The Marcellus added one rig, while the Haynesville dropped two rigs, and the Permian dropped one rig. The number of oil-directed rigs increased by 2 rigs from a week ago to 508 rigs. The Permian added two rigs, the Cana Woodford and the Eagle Ford each added one rig, while the Ardmore Woodford and the Marcellus each dropped one rig. The total rig count, which includes 2 miscellaneous rigs, now stands at 620 rigs, 131 fewer rigs than last year at this time.

Storage

• Net injections into storage totaled 24 Bcf for the week ending April 5, on par with the five-year (2019–2023) average net injections of 24 Bcf and higher than last year's net injections of 11 Bcf during the same week. Working natural gas stocks totaled 2,283 Bcf, which is 633 Bcf (38%) more than the five-year average and 435 Bcf (24%) 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 no net change to net injections of 18 Bcf, with a median estimate of net injections of 13 Bcf.

See also:

• Natural Gas Analysis Reports
• Short-Term Energy Outlook