West spot gas prices retain lead as US regions continue YOY gains in July

Average natural gas prices for day-ahead delivery in July continued to spike year over year in all regions of the U.S., with the West region keeping the lead as it posted an almost 143% year-over-year growth to a spot gas price index of $3.877/MMBtu.

The more-than-double yearly growth in spot gas prices in all U.S. regions came as the above-normal heat continued to weigh on the country during the month. The Midcontinent region recorded the next highest yearly growth of 121% to a spot gas index of $3.616/MMBtu. Compared to the same period a year ago, the spot gas indexes skyrocketed nearly 116% to $3.662/MMBtu at the Gulf Coast region and 106% to $3.276/MMBtu at the Northeast region.

All gas hubs in the West region during the month reported year-over-year increases that went beyond 100%. The SoCal Citygate hub posted the highest boost of almost 225% to a spot gas value of $6.456/MMBtu. The SoCal Border gas hub recorded a 207% gain to a spot gas index of $5.319/MMBtu, while the El Paso - S Mainline gas hub saw a nearly 200% climb to a spot gas value of $5.404/MMBtu.

On the supply side, the U.S. Energy Information Administration in its monthly Drilling Productivity Report released July 12 forecasted total shale gas production to ramp up to approximately 85.51 Bcf/d in August from 85.46 Bcf/d in July.

Production in the Haynesville region is anticipated to rise to 13.48 Bcf/d in August from 13.34 Bcf/d in the prior month. Meanwhile, the Permian Basin is expected to see production increase to roughly 18.08 Bcf/d in August from 18.03 Bcf/d in July.

Market prices and included industry data are current as of the time of publication and are subject to change. For more detailed market data, including power and natural gas index prices, as well as forwards and futures, visit our Commodities pages.