Market Highlights:
Prices
Henry Hub spot price: The Henry Hub spot price fell 7 cents from $3.29 per million British thermal units (MMBtu) last Wednesday to $3.22/MMBtu yesterday. Henry Hub futures price: The March 2025 NYMEX contract price increased to $3.360/MMBtu, up 19 cents from last Wednesday to yesterday. The price of the 12-month strip averaging March 2025 through February 2026 futures contracts rose 9 cents to $3.905/MMBtu. Select regional spot prices: Natural gas spot prices fell at most locations this report week (Wednesday, January 29, to Wednesday, February 5). Price changes ranged from a decrease of $3.32 at Algonquin Citygate to an increase of 25 cents at Eastern Gas South. Price changes were mixed in the Northeast this report week. At the Algonquin Citygate, which serves Boston-area consumers, the price fell $3.32 from $16.54/MMBtu last Wednesday to $13.22/MMBtu yesterday. At the Transco Zone 6 NY trading point for New York City, the price increased 24 cents from $3.57/MMBtu last Wednesday to $3.81/MMBtu yesterday. Average temperatures in the Boston Area reached an intraweek high of 36°F on Monday. The Algonquin Citygate price remains elevated this week on seasonal demand for space heating. Natural gas consumption in New England was essentially unchanged at 4.0 billion cubic feet per day (Bcf/d), according to S&P Global Commodity Insights. Since January 24, ongoing repairs west of Transco’s compressor station 517 in Columbia, Pennsylvania, on the Leidy Line constrained natural gas deliveries eastbound to the New York and New Jersey region during the report week. The repairs to that segment were completed, and the pipeline returned to service on February 5. Prices on the West Coast decreased this report week. The price at SoCal Citygate in Southern California decreased 8 cents from $4.06/MMBtu last Wednesday to $3.98/MMBtu yesterday. At PG&E Citygate in Northern California, the price fell 6 cents from $3.69/MMBtu last Wednesday to $3.63/MMBtu yesterday. Natural gas consumption in California fell 15% (1.0 Bcf/d) this report week, according to data from S&P Global Commodity Insights. Temperatures in the Sacramento Area averaged 51°F, 4°F above the previous report week, resulting in 96 heating degree days (HDD), 31 fewer HDDs than last week. At Northwest Sumas on the Canada-Washington border, the main pricing point for natural gas in the Pacific Northwest, the price fell 12 cents from $3.29/MMBtu last Wednesday to $3.17/MMBtu yesterday. The average temperature in the Seattle City Area was essentially unchanged week over week resulting in 185 HDDs. Natural gas consumption in the Pacific Northwest fell 4% (0.1 Bcf/d) this report week, according to data from S&P Global Commodity Insights. Prices decreased in Texas this report week. The Houston Ship Channel price decreased 37 cents from $2.81/MMBtu last Wednesday to $2.44/MMBtu yesterday. Average temperatures in the Houston Area rose 14°F this report week, leading to 15 HDDs, 66 fewer HDDs than last week. Natural gas consumption in Texas declined 14% (1.8 Bcf/d) this report week, according to S&P Global Commodity Insights. The price at the Waha Hub in West Texas, which is located near Permian Basin production activities, decreased 49 cents from $2.35/MMBtu last Wednesday to $1.86/MMBtu this Wednesday. The Waha Hub traded $1.36 below the Henry Hub price this Wednesday, compared with last Wednesday when it traded 94 cents below the Henry Hub price. The El Paso Natural Gas Company reported a force majeure at a throughput meter in Hidalgo County, New Mexico, on the pipeline segment that moves natural gas westbound to the Desert Southwest. Repairs, which began February 5, reduced available pipeline capacity by about 40% (0.4 Bcf/d).
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 32 cents to a weekly average of $14.40/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands increased $1.00 to a weekly average of $16.08/MMBtu. The weekly average TTF price has been above the weekly average East Asia price since January 13 of this year. In the same week last year (week ending February 7, 2024), the prices were $9.46/MMBtu in East Asia and $9.07/MMBtu at TTF. Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 13 cents/MMBtu, averaging $7.92/MMBtu for the week ending February 5. Ethane prices fell 7% week over week, while weekly average natural gas prices at the Houston Ship Channel decreased 18%, widening the ethane premium to natural gas by 29%. The ethylene spot price fell 2% week over week, and the ethylene premium to ethane was relatively unchanged. Propane prices increased 1%, while Brent crude oil prices decreased 2% week over week. The propane discount to crude oil narrowed 12% for the week. Normal butane prices fell 2%, and isobutane prices and natural gasoline prices each fell 1%.
Supply and Demand
Supply: According to data from S&P Global Commodity Insights, the average total supply of natural gas rose by 1.6% (1.8 Bcf/d) compared with the previous report week. Dry natural gas production grew by 2.6% (2.6 Bcf/d) to average 106.2 Bcf/d, which is the highest weekly average ever recorded. Average net imports from Canada decreased by 11.7% (0.8 Bcf/d) from last week. Demand: Total U.S. consumption of natural gas fell by 14.6% (16.1 Bcf/d) compared with the previous report week, according to data from S&P Global Commodity Insights. Natural gas consumed in the residential and commercial sector declined by 22.3% (10.9 Bcf/d) as warmer weather conditions continued across much of the United States. Natural gas consumed for power generation declined by 11.4% (4.0 Bcf/d), and consumption in the industrial sector decreased by 4.6% (1.2 Bcf/d) week over week. Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 15.2 Bcf/d, or 1.5 Bcf/d higher than last week.
Liquefied Natural Gas (LNG)
Pipeline receipts: Average natural gas deliveries to U.S. LNG export terminals increased 1.5 Bcf/d from last week to 15.2 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Louisiana increased by 2.9% (0.3 Bcf/d) to 9.5 Bcf/d, and natural gas deliveries to terminals in South Texas increased by 35.5% (1.2 Bcf/d) to 4.4 Bcf/d. Natural gas deliveries to terminals outside the Gulf Coast increased by 7.0% (0.1 Bcf/d) to 1.2 Bcf/d this week. Vessels departing U.S. ports: Twenty-nine LNG vessels (ten from Sabine Pass, five from Freeport, four each from Cameron and Corpus Christi, two each from Calcasieu Pass and Plaquemines, and one each from Cove Point and Elba Island) with a combined LNG-carrying capacity of 110 Bcf departed the United States between January 30 and February 5, according to shipping data provided by Bloomberg Finance, L.P.
Storage
Net withdrawals from storage totaled 174 Bcf for the week ending January 31, compared with the five-year (2020–24) average net withdrawals of 174 Bcf and last year’s net withdrawals of 110 Bcf during the same week. Working natural gas stocks totaled 2,397 Bcf, which is 111 Bcf (4%) lower than the five-year average and 208 Bcf (8%) 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 withdrawals of 144 Bcf to 189 Bcf, with a median estimate of 169 Bcf. The average rate of withdrawals from storage is 27% higher than the five-year average so far in the withdrawal season (November through March). If the rate of withdrawals from storage matched the five-year average of 11.0 Bcf/d for the remainder of the withdrawal season, the total inventory would be 1,749 Bcf on March 31, which is 111 Bcf lower than the five-year average of 1,860 Bcf for that time of year.