Henry Hub Spot and Futures Prices: The Henry Hub spot price fell by 30 cents, dropping from $2.51 per million British thermal units (MMBtu) last Wednesday to $2.21/MMBtu yesterday. The June 2024 NYMEX contract expired yesterday at $2.493/MMBtu, a decline of 35 cents from last week. The July 2024 NYMEX contract price also saw a decrease, falling 39 cents to $2.666/MMBtu. The 12-month strip, averaging futures contracts from July 2024 through June 2025, declined by 24 cents to $3.129/MMBtu.
Regional Spot Prices
Natural gas spot price changes varied across regions this week (Wednesday, May 22 to Wednesday, May 29). The changes ranged from a decrease of 57 cents at Transco Zone 6 New York to an increase of 30 cents at Florida Gas Transmission (FGT) Citygate.
In the Northeast, prices saw a decline. At Algonquin Citygate, serving the Boston area, prices dropped by 54 cents from $2.03/MMBtu last Wednesday to $1.49/MMBtu yesterday. At the Transcontinental Pipeline Zone 6 in New York City, prices fell by 57 cents from $2.01/MMBtu to $1.44/MMBtu over the same period. This drop coincided with an increase in average temperatures in Boston, which rose by 8°F to a weekly average of 69°F, and in New York’s Central Park area, where temperatures averaged 72°F, 6°F above normal.
Despite the warmer weather, which resulted in 11 cooling degree days (CDDs) on Friday, residential and commercial natural gas consumption in the Northeast fell by 6.8% (0.2 billion cubic feet per day [Bcf/d]) due to reduced heating demand. However, consumption in the electric power sector increased by 6.9% (0.6 Bcf/d) due to higher air-conditioning demand. Natural gas production in the Northeast rose by 2.3% (0.8 Bcf/d), according to S&P Global Commodity Insights.
In Florida, the price at FGT Citygate rose by 30 cents, reaching $4.08/MMBtu yesterday, maintaining its status as the highest-priced hub in the country. The average temperature in the Orlando area increased by 3°F to 84°F, nearing the all-time high recorded in 1973. Natural gas consumption in the electric power sector in the Atlantic Coast region, which includes Florida, grew by 4.7% (0.3 Bcf/d) this week.
Western Region Prices
Prices in the West rose this week but remained relatively low. At PG&E Citygate in Northern California, prices increased by 13 cents from $1.89/MMBtu last Wednesday to $2.02/MMBtu yesterday. In Southern California, the SoCal Citygate price rose by 19 cents, reaching $1.41/MMBtu. At Sumas on the Canada-Washington border, prices went up by 25 cents from $0.78/MMBtu to $1.03/MMBtu.
Net natural gas flows from Canada into the Western region decreased by 11.9% (0.4 Bcf/d) this week. Despite this, prices in the West remain low, partly due to natural gas storage inventories in the Pacific region being above their five-year maximum level. Mild temperatures also contributed to the low prices. In the Riverside area, inland from Los Angeles, average temperatures were 66°F, resulting in 9 CDDs, which is 23 fewer than normal.
So far this May, the price at SoCal Citygate has averaged $1.56/MMBtu, 32% lower than in May 2023. Similarly, the PG&E Citygate price has averaged $2.29/MMBtu, a 41% decrease from May 2023.
