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As of July 6, 2022, we have restored most of our data publications. A complete list of releases for the week is available. We will publish U.S. diesel prices on Thursday, July 7, at 4:00 p.m. We will continue to provide updates regarding the status of diesel prices and other data products.

Natural Gas

‹ See the most recent Natural Gas Weekly Update

Natural Gas Weekly Update

for week ending May 18, 2022   |  Release date:  May 19, 2022   |  Next release:  May 26, 2022   |   Previous weeks

JUMP TO: In The News | Overview | Prices/Supply/Demand | Storage

In the News:

Two pipeline projects completed in the first quarter of 2022 and additional projects approved by FERC

In our recently updated Natural Gas Pipeline Project Tracker, we estimate over 430 million cubic feet per day (MMcf/d) of new pipeline capacity entered service in the first quarter of 2022. Two notable projects that were completed during the past quarter include:

Recently, the Federal Energy Regulatory Commission (FERC) approved three projects that would facilitate additional U.S. natural gas exports:

  • Evangeline Pass Expansion Project, a 1,100 MMcf/d project from Tennessee Gas Pipeline Company, will involve 13.1 miles of new pipeline and two new compressor stations to deliver natural gas to the proposed Plaquemines Liquefied Natural Gas (LNG) Project in Plaquemines Parish, Louisiana.
  • North Baja Xpress Project, TC Energy’s project to modify existing facilities and compressor stations along its 86-mile North Baja Pipeline, will expand capacity by 495 MMcf/d to facilitate U.S. natural gas exports to the proposed Energia Costa Azul LNG export project in Baja California, Mexico.
  • Alberta Xpress Project, a 165 MMcf/d project from TC Energy that will use existing capacity on the Great Lakes Gas Transmission (GLGT) system and the ANR pipeline, with a new compressor station to be built in Evangeline Parish, Louisiana. The project is designed to increase capacity from the GLGT receipt point at the Minnesota-Manitoba border to delivery points in the U.S. Midwest and U.S. Gulf Coast, increasing the amount of capacity available for LNG export facilities in the region.

Equitrans Midstream recently submitted its application to FERC for the Ohio Valley Connector Expansion Project, a 350 MMcf/d project designed to increase takeaway capacity out of the Appalachia production region by transporting natural gas from various gathering receipt points to interconnections on the Rockies Express and Rover pipelines.

Overview:

(For the week ending Wednesday, May 18, 2022)

  • Spot prices: Natural gas spot prices rose at most locations this report week (Wednesday, May 11 to Wednesday, May 18). The Henry Hub spot price rose from $7.51 per million British thermal units (MMBtu) last Wednesday to $8.45/MMBtu yesterday, the highest daily price since a winter storm contributed to near record-high spot prices in February 2021.
  • International spot prices: International natural gas spot prices were mixed this report week. Bloomberg Finance, L.P., reports that the swap prices for liquefied natural gas (LNG) cargoes in East Asia fell 11 cents/MMBtu to a weekly average of $23.51/MMBtu. At the Title Transfer Facility (TTF) in the Netherlands, the most liquid natural gas spot market in Europe, the day-ahead price increased 10 cents/MMBtu to a weekly average of $28.11/MMBtu. In the same week last year (week ending May 19, 2021), the prices in East Asia and at TTF were $9.48/MMBtu and $9.17/MMBtu, respectively.
  • Futures: The price of the June 2022 NYMEX contract increased 72.8 cents, from $7.640/MMBtu last Wednesday to $8.368/MMBtu yesterday. The price of the 12-month strip averaging June 2022 through May 2023 futures contracts increased 63 cents to $7.728/MMBtu.
  • Storage: The net injections to working gas totaled 89 billion cubic feet (Bcf) for the week ending May 13. Working natural gas stocks totaled 1,732 Bcf, which is 17% lower than the year-ago level and 15% lower than the five-year (2017–2021) average for this week.
  • NGPLs: The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 9 cents/MMBtu, averaging $12.50/MMBtu for the week ending May 18. Weekly average ethane prices rose 2%, following the 4% increase in natural gas prices at the Houston Ship Channel. The ethane premium to natural gas narrowed by 12%. The price of ethylene fell 5%, resulting in a narrower ethane to ethylene spread, which fell 16%. The Brent crude oil price rose 3%, while prices of heavier natural gas liquids fell or remained relatively unchanged. Normal butane and isobutane prices both fell 3% and propane prices fell 2%. The propane discount to crude oil widened by 18%. Natural gasoline prices remained relatively unchanged.
  • Rigs: According to Baker Hughes, for the week ending Tuesday, May 10, the natural gas rig count increased by 3 rigs from a week ago to 149 rigs. The Arkoma Woodford added one rig and two rigs were added in unspecified producing regions. The number of oil-directed rigs increased by 6 to 563 rigs. The Cana Woodford added two rigs, the Williston and Eagle Ford each added one rig, five rigs were added in unspecified producing regions, and one rig each was dropped in the Ardmore Woodford, the Granite Wash, and the Mississippian. The total rig count now stands at 714, the highest level since March 27, 2020, and 261 rigs more than the same week last year.

more summary data

Prices/Supply/Demand:

Prices along the Gulf Coast rise as temperatures remain above normal. This report week (Wednesday, May 11 to Wednesday, May 18), the Henry Hub spot price rose 94 cents from $7.51/MMBtu last Wednesday to $8.45/MMBtu yesterday. Prices across the South were higher, as temperatures in the region remained above normal again this report week, resulting in higher air-conditioning demand. Natural gas consumption by the electric power sector along the Gulf Coast increased by 0.3 billion cubic feet per day (Bcf/d) (6%) to 5.0 Bcf/d this report week, according to data from PointLogic. Temperatures in the Houston Area averaged 82°F, which is 4°F higher than normal, and reached a weekly high of 95°F yesterday. Feed gas deliveries to LNG export terminals along the Gulf Coast decreased by 0.2 Bcf/d (1%) to 10.8 Bcf/d.

Prices in the Midwest increase with the national average as temperatures rise above normal. At the Chicago Citygate, the price increased 70 cents from $7.46/MMBtu last Wednesday to $8.16/MMBtu yesterday. Temperatures in the Chicago Area averaged 69°F this report week, 7°F higher than last report week (62°F), and 9°F higher than normal. The higher-than-normal temperatures resulted in 31 fewer heating degree days (HDDs) than normal, and 34 cooling degree days (CDDs) more than normal. Week-over-week consumption of natural gas by the residential and commercial sectors in the Midwest decreased by 1.2 Bcf/d (38%), while consumption by the electric power sector increased by 0.3 Bcf/d (11%), according to data from PointLogic.

Prices across the West follow major hub prices higher as temperatures moderate. The price at PG&E Citygate in Northern California rose 66 cents, up from $9.04/MMBtu last Wednesday to $9.70/MMBtu yesterday. Prices across the West were all higher this week, even as temperatures across the region moderated. Temperatures in the Seattle City Area averaged 54°F this report week, 3°F higher than last report week (51°F) but 3°F lower than normal. Natural gas consumption by the residential and commercial sectors in the Pacific Northwest decreased by 0.2 Bcf/d (25%), according to data from PointLogic, and consumption by the electric power sector decreased by 0.2 Bcf/d (42%). Planned outages due to maintenance on the Gas Transmission Northwest (GTN) pipeline are expected to affect flows from Canada into the Northwest United States, according to a recent TC Energy notice.

The price at SoCal Citygate in Southern California increased $1.01 from $7.70/MMBtu last Wednesday to $8.71/MMBtu yesterday. Temperatures in the Riverside Area, inland from Los Angeles, averaged 72°F this report week, 7°F higher than last report week (65°F) and 4°F higher than normal. Natural gas consumption by the residential and commercial sectors in California decreased by 0.4 Bcf/d (22%), according to data from PointLogic, and consumption by the electric power sector increased by 0.2 Bcf/d (16%).

Prices in the Northeast rise as warmer temperatures move into the region and cooling demand increases. At the Algonquin Citygate, which serves Boston-area consumers, the price went up 53 cents from $7.46/MMBtu last Wednesday to $7.99/MMBtu yesterday. At the Transcontinental Pipeline Zone 6 trading point for New York City, the price increased $1.07 from $6.71/MMBtu last Wednesday to $7.78/MMBtu yesterday, in line with other pricing hubs around the country. Higher-than-normal temperatures contributed to natural gas consumption in the electric power sector in the Northeast increasing by 0.9 Bcf/d (14%) this week, according to data from PointLogic. Temperatures in the Boston Area reached a daily high of 86°F on Saturday, which was almost 18°F higher than normal. Consumption in the electric power sector in the New York and New Jersey area rose by 0.2 Bcf/d (12%) this week.

Prices in the Appalachian Basin production region increase as local demand from the electric power sector rises. The Tennessee Zone 4 Marcellus spot price increased 96 cents from $6.51/MMBtu last Wednesday to $7.47/MMBtu yesterday. The price at Eastern Gas South in southwest Pennsylvania rose 87 cents from $6.70/MMBtu last Wednesday to $7.57/MMBtu yesterday. Natural gas consumption in the electric power sector increased 0.5 Bcf/d (14%) this week, according to data from PointLogic. Early in the report week, from Thursday to Sunday, temperatures in the Pittsburgh Area averaged 81°F, which is 8°F above normal. Natural gas flows out of the Appalachian Basin to the Southern Corridor and Atlantic increased by a combined 0.5 Bcf/d (4%) this week.

Prices in the Permian Basin production region rise, decreasing the discount to Henry Hub. The price at the Waha Hub in West Texas, which is located near Permian Basin production activities, rose $1.01 this report week, from $6.96/MMBtu last Wednesday to $7.97/MMBtu yesterday. The Waha Hub traded 48 cents below the Henry Hub price yesterday, compared with last Wednesday when it traded 55 cents below the Henry Hub price. According to data from PointLogic, eastbound flows of natural gas out of the Permian Basin increased by 0.2 Bcf/d (3%) this week to meet higher demand from the electric power sector in other areas of Texas.

U.S. natural gas supply decreases slightly week over week. According to data from PointLogic, the average total supply of natural gas fell by 0.4% (0.4 Bcf/d) to 100.2 Bcf/d compared with the previous report week. Dry natural gas production decreased by 0.1% (0.1 Bcf/d), and average net imports from Canada decreased by 6.0% (0.3 Bcf/d) from last week.

U.S. natural gas demand falls as temperatures rise across many major metropolitan areas. Total U.S. consumption of natural gas fell by 3.5% (2.3 Bcf/d) compared with the previous report week, according to data from PointLogic. Temperatures across the South, Mid-Continent, and Northeast were above normal this report week, while temperatures across much of the West were close to normal. The Pacific Northwest remains cool, but temperatures have been rising. As a result of warming weather in the Northeast and Mid-Continent and lower demand for space heating, residential and commercial consumption of natural gas declined by 30.8% (4.4 Bcf/d). Consumption by the electric power sector increased by 9.0% (2.6 Bcf/d) because of rising demand for air conditioning. Industrial sector consumption decreased by 2.2% (0.5 Bcf/d), and natural gas exports to Mexico decreased 4.1% (0.2 Bcf/d) to 5.6 Bcf/d. Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 12.0 Bcf/d, or 0.2 Bcf/d lower than last week.

U.S. LNG exports decrease by two vessels this week from last week. Nineteen LNG vessels (eight from Sabine Pass, four from Corpus Christi, three from Freeport, and two each from Cameron and Cove Point) with a combined LNG-carrying capacity of 73 Bcf departed the United States between May 12 and May 18, according to shipping data provided by Bloomberg Finance, L.P.

Storage:

The net injections into storage totaled 89 Bcf for the week ending May 13, compared with the five-year (2017–2021) average net injections of 87 Bcf and last year's net injections of 71 Bcf during the same week. Working natural gas stocks totaled 1,732 Bcf, which is 310 Bcf lower than the five-year average and 358 Bcf 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 injections of 81 Bcf to 92 Bcf, with a median estimate of 87 Bcf.

More storage data and analysis can be found on the Natural Gas Storage Dashboard and the Weekly Natural Gas Storage Report.

See also:

Select natural gas pipeline projects Data source: U.S. Energy Information Administration, Natural Gas Pipeline Project Tracker


Natural gas spot prices
Spot Prices ($/MMBtu)
Thu,
12-May
Fri,
13-May
Mon,
16-May
Tue,
17-May
Wed,
18-May
Henry Hub
7.31
7.70
7.98
8.23
8.45
New York
6.69
6.89
7.73
7.60
7.78
Chicago
7.35
7.38
7.83
8.10
8.16
Cal. Comp. Avg.*
7.80
7.87
8.25
8.61
8.74
Futures ($/MMBtu)
June contract
7.739
7.663
7.956
8.304
8.368
July contract
7.835
7.765
8.053
8.394
8.455

Data source: Natural Gas Intelligence and CME Group as compiled by Bloomberg, L.P.
Note: *Avg. is the average of NGI's reported prices for Malin, PG&E Citygate, and Southern California Border Avg.

Natural gas futures prices


U.S. natural gas supply - Gas Week: (5/12/22 - 5/18/22)
Average daily values (billion cubic feet)
this week
last week
last year
Marketed production
107.3
107.4
104.3
Dry production
95.1
95.2
92.4
Net Canada imports
5.0
5.4
4.4
LNG pipeline deliveries
0.1
0.1
0.1
Total supply
100.2
100.6
96.9

Data source: PointLogic
Note: This table reflects any data revisions that may have occurred since the previous week's posting. Liquefied natural gas (LNG) pipeline deliveries represent natural gas sendout from LNG import terminals.

U.S. natural gas consumption - Gas Week: (5/12/22 - 5/18/22)
Average daily values (billion cubic feet)
this week
last week
last year
U.S. consumption
62.6
64.9
59.5
    Power
31.3
28.7
24.8
    Industrial
21.5
22.0
21.3
    Residential/commercial
9.8
14.2
13.4
Mexico exports
5.6
5.8
6.2
Pipeline fuel use/losses
6.3
6.4
6.1
LNG pipeline receipts
12.0
12.2
10.5
Total demand
86.6
89.3
82.3

Data source: PointLogic
Note: This table reflects any data revisions that may have occurred since the previous week's posting. Liquefied natural gas (LNG) pipeline receipts represent pipeline deliveries to LNG export terminals.

Natural gas supply


Weekly natural gas rig count and average Henry Hub
Rigs
Tue, May 10, 2022
Change from
 
last week
last year
Oil rigs
563
1.1%
59.9%
Natural gas rigs
149
2.1%
49.0%
Note: Excludes any miscellaneous rigs
Rig numbers by type
Tue, May 10, 2022
Change from
 
last week
last year
Vertical
25
0.0%
66.7%
Horizontal
651
0.8%
58.8%
Directional
38
11.8%
35.7%
Data source: Baker Hughes Company


Working gas in underground storage
Stocks
billion cubic feet (Bcf)
Region
2022-05-13
2022-05-06
change
East
296
274
22
Midwest
364
342
22
Mountain
 103
 96
7
Pacific
187
183
4
South Central
781
749
32
Total
1,732
1,643
89
Data source: U.S. Energy Information Administration Form EIA-912, Weekly Underground Natural Gas Storage Report
Working gas in underground storage
Historical comparisons
Year ago
(5/13/21)
5-year average
(2017-2021)
Region
Stocks (Bcf)
% change
Stocks (Bcf)
% change
East
356
-16.9
363
-18.5
Midwest
470
-22.6
441
-17.5
Mountain
134
-23.1
121
-14.9
Pacific
245
-23.7
225
-16.9
South Central
884
-11.7
893
-12.5
Total
2,090
-17.1
2,042
-15.2
Data source: U.S. Energy Information Administration Form EIA-912, Weekly Underground Natural Gas Storage Report


Temperature – heating & cooling degree days (week ending May 12)
 
HDDs
CDDs
Region
Current total
Deviation from normal
Deviation from last year
Current total
Deviation from normal
Deviation from last year
New England
82
7
-5
0
0
0
Middle Atlantic
63
1
-32
0
-2
0
E N Central
39
-28
-85
24
17
24
W N Central
23
-35
-78
38
30
38
South Atlantic
37
12
-11
33
2
-1
E S Central
13
-10
-32
37
15
25
W S Central
2
-5
-12
98
52
56
Mountain
60
-12
-14
18
3
-1
Pacific
72
28
52
0
-6
-1
United States
45
-5
-28
27
11
14
Data source: National Oceanic and Atmospheric Administration
Note: HDDs=heating degree days; CDDs=cooling degree days

   Average temperature (°F)


    7-day mean ending May 12, 2022

Mean Temperature (F) 7-Day Mean ending May 12, 2022

        Data source: National Oceanic and Atmospheric Administration

  Deviation between average and normal temperature (°F)


   7-day mean ending May 12, 2022

Mean Temperature Anomaly (F) 7-Day Mean ending May 12, 2022

        Data source: National Oceanic and Atmospheric Administration