Cash prices around much of the country, with a few exceptions, posted gains over the week. The Henry Hub price dropped overall from $3.39 per MMBtu last Wednesday to $3.55 yesterday, but movements during the week were mixed. On the last couple of days of trading in the report week, many pricing points around the country rallied slightly. The Henry Hub gained a total of 20 cents in these last two days.
Prices in New England were exceptions to the overall increase seen in spot prices. The Algonquin Citygate price, which serves as a proxy for prices in the Boston, Massachusetts area, fell from $4.19 per MMBtu last Wednesday to $4.03 per MMBtu yesterday. Similarly, prices on Tennessee Pipeline’s Zone 6 delivery points (which serve Connecticut, Massachusetts, Rhode Island, and New Hampshire) fell slightly over the report week. Outside of New England, however, Northeast prices rose, following the general trend of the rest of the country. At Transcontinental Pipeline’s Zone 6 delivery point serving New York City, prices rose from $3.59 per MMBtu last Wednesday to $3.82 per MMBtu yesterday.
For much of the week, the eastern part of the United States was warmer than normal, while the western part was cooler than normal. These temperature patterns boosted natural gas used for power burn in the Northeast, Midwest, and Southeast, and increased the use of natural gas used for residential and commercial heating in the Rockies and California regions. Southern California prices also reflected cooler temperatures, with the Southern California Citygate price rising from $3.71 per MMBtu last Wednesday to ¬¬$3.92 per MMBtu yesterday. The area warmed up near the end of the report week, however, and demand retreated. The Midwest was much warmer than normal, and Midwest power burn for the whole week reflected this, averaging almost 14 percent more than last week’s levels and 72 percent more than the same week last year.
Dry production was up about 0.4 percent this week, but declined somewhat near the end of the report week from levels greater than 64 Bcf per day from previously in the report week. The Independence Hub, an offshore natural gas production facility in the Gulf of Mexico, is currently offline for maintenance, removing close to 0.5 Bcf per day of natural gas from the Gulf. According to BENTEK Energy Services, LLC (BENTEK) estimates, this has brought Gulf of Mexico production to below 7 Bcf per day. However, BENTEK noted that companies were able to source gas from other regions of the country to maintain deliveries to consuming regions.