Average natural gas prices for day-ahead delivery in January increased in all U.S. regions year over year. The Northeast region during the month posted the highest year-over-year boost of 43.04% to an index of $3.023/MMBtu, from $2.114/MMBtu in the same year-ago period.
The Mid-Continent region in January saw a year-over-year gain of 39.16% to a spot gas price index of $2.514/MMBtu. Meanwhile, the West and Gulf Coast regions recorded year-over-year increases of 35.55% and 34.52%, respectively, to spot gas price indexes of $2.631/MMBtu and $2.581/MMBtu.
Year-over-year gains at Northeast gas hubs ranged from 28.37% to as much as 75.13% in January. The Iroquois Z 2 gas hub saw the highest growth year over year as it posted an index of $4.512/MMBtu, compared with a spot gas price index of $2.577/MMBtu in January 2020. The Tennessee Zone 6 gas hub followed second with a year-over year increase of 64.63% to an index of $4.682/MMBtu, an increase from $2.844/MMBtu in the same prior-year month.
On the supply side, the U.S. Energy Information Administration in its monthly Drilling Productivity Report released Jan. 19 said shale gas production is anticipated to continue a downward trend and decline to 80.60 Bcf/d in February from 81.07 Bcf/d in January. Appalachia, the country's largest shale gas producing region, is forecast to see a minor drop from 33.95 Bcf/d in January to 33.84 Bcf/d in February. Out of all the shale gas producing regions, only the Haynesville Shale is expected to see an increase, from 11.33 Bcf/d in January to 11.38 Bcf/d in February.
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.