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Natural Gas Weekly Update

for week ending December 20, 2023   |  Release date:  December 21, 2023   |  Next release:  January 11, 2024   |   Previous weeks

    Note: Due to the federal government's observed holidays on December 25 and January 1, the next Natural Gas Weekly Update will be released on January 11.

JUMP TO: Prices | Supply and Demand | Liquefied Natural Gas (LNG) | Rig Count | Storage | Other Market Drivers

We are excited to announce changes to Today in Energy (TIE).

Beginning on January 8, Today in Energy will encompass a broader range of analysis. Pieces previously published as This Week in Petroleum (TWIP), the Electricity Monthly Update (EMU), and the Natural Gas Weekly Update’s (NGWU) In the News will now fall under Today in Energy.

Consolidating these products will make it easier for you to access our energy analysis. We will continue covering emerging energy topics and remain flexible in analyzing changes to the energy landscape.

Key improvements to TIE articles:

  • One page for all analysis. Analysis articles for TWIP, NGWU, and EMU will be available on the TIE page. We will continue to publish the data and statistics associated with these products in their current formats and on their current pages, and their article archives will remain in place.
  • Timely analysis. With this new approach, we will continue to publish articles most weekday mornings, but we will now also publish additional content in the afternoon, as appropriate.
  • Article types. We will publish three article types that span topics across the energy sector.
    • Announcement: highlights from recently released statistics
    • In-brief analysis: a short analysis describing a trend in energy markets, similar to current TIE articles
    • In-depth analysis: a longer analysis addressing more complex topics in energy markets
  • Advanced filtering by article type and topic. In addition to searching articles by keywords, you will be able to filter articles by type.
  • Access to existing legacy content. All TIE articles will still be available in their archive, and legacy articles on TWIP, NGWU, and EMU will be archived and available on their current pages.
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Between December 18, 2023 – January 1, 2024, we will publish several of our most popular articles from 2023 in Today in Energy and resume publishing our most up-to-date analysis January 2, 2024.

Subscribe to TIE email updates to receive articles on all topics.

Market Highlights:

(For the week ending Wednesday, December 20, 2023)

Prices

  • Henry Hub spot price: The Henry Hub spot price rose 16 cents from $2.33 per million British thermal units (MMBtu) last Wednesday to $2.49/MMBtu yesterday.
  • Henry Hub futures price: The price of the January 2024 NYMEX contract increased 11.2 cents, from $2.335/MMBtu last Wednesday to $2.447/MMBtu yesterday. The price of the 12-month strip averaging January 2024 through December 2024 futures contracts increased slightly to $2.564/MMBtu.
  • Select regional spot prices: Natural gas spot prices rose at most locations this report week (Wednesday, December 13, to Wednesday, December 20). Price changes ranged from a decrease of 88 cents at the SoCal Citygate to an increase of $2.02 at the Algonquin Citygate.
    • Prices in the Northeast increased this week, driven by a drop in temperatures at the end of the report week. At the Algonquin Citygate, which serves Boston-area consumers, the price rose $2.02 from $3.39/MMBtu last Wednesday to $5.41/MMBtu yesterday. At the Transcontinental Pipeline Zone 6 trading point for New York City, the price increased 38 cents from $2.14/MMBtu last Wednesday to $2.52/MMBtu yesterday. Although average temperatures in the Boston Area increased 2°F this week, they dropped on Tuesday and Wednesday from a high of 54°F on Monday to 37°F yesterday. Weekly average consumption of natural gas in the residential and commercial sectors in the Northeast increased 1.2% (0.2 billion cubic feet per day [Bcf/d]), according to data from S&P Global Commodity Insights.
    • The price at Northwest Sumas on the Canada-Washington border, the main natural gas pricing point in the Pacific Northwest, increased this week from a relatively low price of $1.12/MMBtu last week to $2.72/MMBtu yesterday. Electric power sector consumption of natural gas in the Pacific Northwest increased 9.8% (0.1 Bcf/d) this week, according to data from S&P Global Commodity Insights.
    • Prices in California decreased this week as consumption declined, driven by warmer temperatures. The price at PG&E Citygate in Northern California fell 55 cents, down from $4.21/MMBtu last Wednesday to $3.66/MMBtu yesterday. The price at SoCal Citygate in Southern California decreased 88 cents from $4.31/MMBtu last Wednesday to $3.43/MMBtu yesterday. In the Riverside Area, inland from Los Angeles, temperatures averaged 62°F this week, an increase of 4°F from last week’s average, resulting in 27 fewer heating degree days (HDD). As a result of the warmer temperatures, consumption of natural gas in the residential and commercial sectors decreased 17.9% (0.5 Bcf/d) in California, according to data from 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 $2.47 to a weekly average of $13.30/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands decreased 84 cents to a weekly average of $10.89/MMBtu. In the same week last year (week ending December 21, 2022), the prices were $34.420MBtu in East Asia and $34.99/MMBtu at TTF.
  • Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 9 cents, averaging $6.76/MMBtu for the week ending December 20. Weekly average ethane prices rose 7%, while weekly average natural gas prices at the Houston Ship Channel rose 3%. The ethane premium to natural gas rose 18% week over week. The ethylene spot price fell 2%, decreasing the ethylene premium to ethane by 6%. The average weekly propane price fell 1%, while the Brent crude oil price rose 6%. The propane discount relative to crude oil increased 15% week over week. Normal butane and isobutane prices both fell 2%, and natural gasoline prices rose 4%.
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Supply and Demand

  • Supply: According to data from S&P Global Commodity Insights, the average total supply of natural gas rose by 0.6% (0.7 Bcf/d) compared with the previous report week. Dry natural gas production grew by 0.6% (0.6 Bcf/d) to average 105.8 Bcf/d, a weekly average record high, and average net imports from Canada increased by 2.2% (0.1 Bcf/d) from last week.
  • Demand: Total U.S. consumption of natural gas rose by 0.3% (0.3 Bcf/d) compared with the previous report week, according to data from S&P Global Commodity Insights. Natural gas consumed for power generation rose by 0.1% (less than 0.1 Bcf/d) week over week. Industrial sector consumption decreased by 0.5% (0.1 Bcf/d), and residential and commercial sector consumption increased by 1.1% (0.4 Bcf/d). Natural gas exports to Mexico decreased 2.1% (0.1 Bcf/d). Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 14.6 Bcf/d, unchanged from last week.
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Liquefied Natural Gas (LNG)

  • Pipeline receipts: Average natural gas deliveries to U.S. LNG export terminals were essentially unchanged week over week, averaging 14.6 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Louisiana decreased by 1.0% (0.1 Bcf/d) to 9.1 Bcf/d. Natural gas deliveries to terminals in South Texas increased by 2.0% (0.1 Bcf/d) to 4.3 Bcf/d, and natural gas deliveries to terminals outside the Gulf Coast were essentially unchanged at 1.2 Bcf/d.
  • Vessels departing U.S. ports: Twenty-two LNG vessels (eight from Sabine Pass; four each from Corpus Christi and Freeport; three from Cameron; two from Cove Point; and one from Calcasieu Pass) with a combined LNG-carrying capacity of 82 Bcf departed the United States between December 14 and December 20, according to shipping data provided by Bloomberg Finance, L.P.
  • Vessels arriving at U.S. ports: One LNG vessel with a carrying capacity of 3 Bcf docked for off-loading at the Everett LNG terminal in Boston Harbor in Massachusetts between December 13 and December 20, according to shipping data provided by Bloomberg Finance, L.P.
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Rig Count

  • According to Baker Hughes, for the week ending Tuesday, December 12, the natural gas rig count remained flat at 119 rigs as an increase of 1 rig in the Haynesville was offset by a decrease of 1 rig among unidentified producing regions. The number of oil-directed rigs fell by 2 to 501 rigs. The Arkoma Woodford and Eagle Ford each added one rig, the Cana Woodford added three rigs, and two rigs were added among unidentified producing regions. The Granite Wash dropped five rigs, the Permian dropped three rigs, and the Williston dropped one rig. The total rig count, which includes 3 miscellaneous rigs, decreased by 3, and it now stands at 623 rigs.
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Storage

  • Net withdrawals from storage totaled 87 Bcf for the week ending December 15, compared with the five-year (2018–2022) average net withdrawals of 107 Bcf and last year's net withdrawals of 82 Bcf during the same week. Working natural gas stocks totaled 3,577 Bcf, which is 280 Bcf (8%) more than the five-year average and 240 Bcf (7%) 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 73 Bcf to 96 Bcf, with a median estimate of 82 Bcf.
More storage data and analysis can be found on the Natural Gas Storage Dashboard and the Weekly Natural Gas Storage Report.

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See also:

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Today In Energy Announcement


Natural gas spot prices
Spot Prices ($/MMBtu)
Thu,
14-Dec
Fri,
15-Dec
Mon,
18-Dec
Tue,
19-Dec
Wed,
20-Dec
Henry Hub
2.38
2.44
2.59
2.45
2.49
New York
1.78
1.65
2.31
2.28
2.52
Chicago
2.06
2.19
2.26
2.10
2.16
Cal. Comp. Avg.*
3.54
3.51
3.33
3.47
3.31
Futures ($/MMBtu)
January contract
2.392
2.491
2.503
2.492
2.447
February contract
2.347
2.425
2.416
2.366
2.347
*Avg. of NGI's reported prices for: Malin, PG&E Citygate, and Southern California Border Avg.
Data source: NGI's Daily Gas Price Index
Natural gas futures prices
Natural gas liquids spot prices


U.S. natural gas supply - Gas Week: (12/14/23 - 12/20/23)
Average daily values (billion cubic feet)
this week
last week
last year
Marketed production
119.9
119.3
114.6
Dry production
105.8
105.2
101.6
Net Canada imports
5.2
5.1
5.9
LNG pipeline deliveries
0.1
0.1
0.1
Total supply
111.1
110.4
107.6

Data source: S&P Global Commodity Insights
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: (12/14/23 - 12/20/23)
Average daily values (billion cubic feet)
this week
last week
last year
U.S. consumption
93.9
93.6
102.0
    Power
33.3
33.3
32.6
    Industrial
24.7
24.8
24.5
    Residential/commercial
35.9
35.5
44.9
Mexico exports
6.2
6.3
5.1
Pipeline fuel use/losses
7.8
7.8
7.8
LNG pipeline receipts
14.6
14.6
12.7
Total demand
122.5
122.4
127.6

Data source: S&P Global Commodity Insights
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, December 12, 2023
Change from
 
last week
last year
Oil rigs
501
-0.4%
-19.2%
Natural gas rigs
119
0.0%
-22.7%
Note: Excludes any miscellaneous rigs
Rig numbers by type
Tue, December 12, 2023
Change from
 
last week
last year
Vertical
14
-6.7%
-46.2%
Horizontal
560
0.2%
-20.8%
Directional
49
-5.8%
14.0%
Data source: Baker Hughes Company


Working gas in underground storage
Stocks
billion cubic feet (Bcf)
Region
12/15/23
12/08/23
change
East
834
857
-23
Midwest
1,021
1,055
-34
Mountain
 236
 243
-7
Pacific
283
289
-6
South Central
1,203
1,219
-16
Total
3,577
3,664
-87
Data source: U.S. Energy Information Administration Form EIA-912, Weekly Underground Natural Gas Storage Report
Note: Totals may not equal sum of components because of independent rounding.
Working gas in underground storage
Historical comparisons
Year ago
(12/15/22 )
5-year average
(2018-22)
Region
Stocks (Bcf)
% change
Stocks (Bcf)
% change
East
794
5.0
796
4.8
Midwest
978
4.4
955
6.9
Mountain
179
31.8
185
27.6
Pacific
188
50.5
247
14.6
South Central
1,199
0.3
1,114
8.0
Total
3,337
7.2
3,297
8.5
Data source: U.S. Energy Information Administration Form EIA-912, Weekly Underground Natural Gas Storage Report
Note: Totals may not equal sum of components because of independent rounding.


Temperature – heating & cooling degree days (week ending Dec 14)
 
HDDs
CDDs
Region
Current total
Deviation from normal
Deviation from last year
Current total
Deviation from normal
Deviation from last year
New England
198
-28
-28
0
0
0
Middle Atlantic
193
-22
-25
0
0
0
E N Central
196
-50
-6
0
0
0
W N Central
211
-61
-15
0
0
0
South Atlantic
142
-9
19
6
-2
-5
E S Central
138
-18
55
0
-1
-2
W S Central
97
-18
53
2
0
-15
Mountain
211
-12
-19
0
0
0
Pacific
102
-15
-50
0
0
0
United States
164
-28
-8
1
-1
-3
Data source: National Oceanic and Atmospheric Administration
Note: HDDs=heating degree days; CDDs=cooling degree days

   Average temperature (°F)


   7-day mean ending Dec 14, 2023

Mean Temperature (F) 7-Day Mean ending Dec 14, 2023

        Data source: National Oceanic and Atmospheric Administration

  Deviation between average and normal temperature (°F)


   7-day mean ending Dec 14, 2023

Mean Temperature Anomaly (F) 7-Day Mean ending Dec 14, 2023

        Data source: National Oceanic and Atmospheric Administration