Natural Gas

Market Highlights:

Prices

• Henry Hub spot price: The Henry Hub spot price fell 10 cents from $2.59 per million British thermal units (MMBtu) last Wednesday to $2.49/MMBtu yesterday.
• Henry Hub futures price: The September 2023 NYMEX contract expired Tuesday at $2.556/MMBtu, up 6 cents from last Wednesday. The October 2023 NYMEX contract price increased to $2.796/MMBtu, up 20 cents from last Wednesday to yesterday. The price of the 12-month strip averaging October 2023 through September 2024 futures contracts rose 5 cents to $3.345/MMBtu.
• Select regional spot prices: Natural gas spot prices rose at most locations this report week (Wednesday, August 23 to Wednesday, August 30). Price movements this week ranged from a decrease of 93 cents/MMBtu at Florida Gas Transmission Citygate (FGT) to an increase of 41 cents/MMBtu at the Opal Hub in southwest Wyoming.
• Prices in West Coast markets increased this report week. The price at SoCal Citygate in Southern California increased 12.5 cents from $3.58/MMBtu last Wednesday to $3.71/MMBtu yesterday, and the price at PG&E Citygate in Northern California increased 37 cents from $4.14/MMBtu last Wednesday to $4.51/MMBtu yesterday. Ongoing maintenance in New Mexico by El Paso Natural Gas has led to capacity constraints for natural gas flowing westbound into Southern California. Prices in the region reached an intraweek daily high of $4.23/MMBtu in the Desert Southwest (the El Paso South Mainline/North Baja pricing point) and $10.02/MMBtu at SoCal Citygate on August 28, as temperature-related demand in the region rose amid maintenance constraints. Temperatures in the Phoenix Area in Arizona reached a monthly high of 117°F, over 11°F above normal, and in the Riverside Area, east of Los Angeles, temperatures averaged 83°F this week, resulting in 129 cooling degree days (CDD), 33 more CDDs than last week and 26 more CDDs than normal.
• In the Southeast, prices fell this report week despite increased consumption of natural gas. The price at FGT Citygate fell 93 cents from $4.49/MMBtu last Wednesday to $3.57/MMBtu yesterday. The weekly decrease in price occurred as Hurricane Idalia reached the coast of Florida on August 30 and caused widespread power outages in Florida and Georgia, decreasing demand for electric power generation. The FGT Citygate price reflects deliveries into Florida via the Florida Gas Transmission system. Although prices decreased at FGT Citygate, consumption of natural gas throughout the broader Atlantic Coast region rose week over week, driven by higher-than-normal temperatures that supported cooling demand. On the Atlantic Coast, natural gas consumption in the electric power sector rose 3% (0.2 Bcf/d) week over week, and total natural gas consumption rose 2% (0.2 Bcf/d), according to data from S&P Global Commodity Insights (SPGCI).

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 76 cents to a weekly average of $13.33/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands decreased $1.13 to a weekly average of $11.22/MMBtu. In the same week last year (week ending August 31, 2022), the prices were $64.02/MMBtu in East Asia and $83.62/MMBtu at TTF, the highest weekly average TTF price on record. International natural gas prices have been volatile throughout August due to uncertainty about Australian LNG supplies amid the potential for labor stoppages.
• Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 35 cents/MMBtu, averaging $7.10/MMBtu for the week ending August 30. Weekly average ethane prices rose 4%, while natural gas prices at the Houston Ship Channel remained relatively unchanged, widening the ethane premium to natural gas by 10% week over week. Ethylene spot prices remained relatively unchanged, narrowing the ethylene premium to ethane by 4%. The propane price rose 9%, while the Brent crude oil price remained relatively unchanged, decreasing the propane discount relative to crude oil by 8%. The normal butane price rose 5%, the isobutane price rose 6%, and the natural gasoline price rose 1%.

Supply and Demand

• Supply: According to data from SPGCI, the average total supply of natural gas rose by 0.2% (0.3 Bcf/d) compared with the previous report week. Dry natural gas production grew by 0.3% (0.3 Bcf/d) to average 102.8 Bcf/d, a new weekly high, and average net imports from Canada decreased by 0.8% (less than 0.1 Bcf/d) from last week.
• Demand: Total U.S. consumption of natural gas fell by 0.1% (0.1 Bcf/d) compared with the previous report week, according to data from SPGCI. Natural gas consumed for power generation increased by 0.1% (less than 0.1 Bcf/d) week over week. Industrial sector consumption increased by 0.3% (0.1 Bcf/d) week over week, and residential and commercial sector consumption declined by 2.2% (0.2 Bcf/d). Natural gas exports to Mexico increased 0.6% (less than 0.1 Bcf/d). Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 12.1 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 by 2.6% (0.3 Bcf/d) week over week, averaging 12.1 Bcf/d, according to data from SPGCI. Natural gas deliveries to terminals in South Texas increased by 3.2% (0.1 Bcf/d) to 3.9 Bcf/d, while deliveries to terminals in South Louisiana increased by 2.9% (0.2 Bcf/d) to 7.2 Bcf/d. Natural gas deliveries to terminals outside the Gulf Coast decreased 2.0% to 1.0 Bcf/d.
• Vessels departing U.S. ports: Twenty-three LNG vessels (seven from Sabine Pass; five from Freeport; four each from Cameron and Corpus Christi; two from Calcasieu Pass; and one from Cove Point) with a combined LNG-carrying capacity of 86 Bcf departed the United States between August 24 and August 30, according to shipping data provided by Bloomberg Finance, L.P.

Rig Count

• According to Baker Hughes, for the week ending Tuesday, August 22, the natural gas rig count decreased by 2 rigs from a week ago to 115 rigs. The Haynesville dropped two rigs, the Permian dropped one rig, and the Marcellus gained one rig. The number of oil-directed rigs fell by 8 rigs from last week to 512 rigs. The Cana Woodford and Eagle Ford dropped one rig each, and the Permian dropped six rigs. The total rig count, which includes 5 miscellaneous rigs, stands at 632 rigs, 133 fewer rigs than last year at this time.

Storage

• Net injections into storage totaled 32 Bcf for the week ending August 25, compared with the five-year (2018–2022) average net injections of 51 Bcf and last year's net injections of 61 Bcf during the same week. Working natural gas stocks totaled 3,115 Bcf, which is 249 Bcf (9%) more than the five-year average and 484 Bcf (18%) more than last year at this time. Net injections have trailed the five-year average for eight consecutive weeks.
• 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 21 Bcf to 36 Bcf, with a median estimate of 31 Bcf.
• The average rate of injections into storage is 4% lower than the five-year average so far in the refill season (April through October). If the rate of injections into storage matched the five-year average of 10.9 Bcf/d for the remainder of the refill season, the total inventory would be 3,844 Bcf on October 31, which is 249 Bcf higher than the five-year average of 3,595 Bcf for that time of year.

See also:

• Natural Gas Analysis Reports
• Short-Term Energy Outlook