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Northeast spot gas value slashed by a quarter YOY in September

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Northeast spot gas value slashed by a quarter YOY in September

The Northeast led year-over-year losses in regional spot gas pricing September, when bearish weather-related demand combined with anticipation of overall production growth.

The regional average price of natural gas for day-ahead delivery spanned the low $2s/MMBtu in September, as single to double digit percentage losses versus the year-ago period were observed across the board. The Northeast logged the largest percentage decline and lowest valued index for the month, after a 25.9% drop drove the regional average to $2.027/MMBtu.

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Population-weighted cooling degree days for the four-week period ended Sept. 28 were down 2.2% from the prior year for the U.S. as a whole but 71.0% lower over the period for New England, according to the National Oceanic and Atmospheric Administration data.

Adding to the downside momentum, the U.S. Energy Information Administration's Sept. 16 Drilling Productivity Report projects a 0.47 Bcf/d growth in total shale gas production from September to October, despite declines in the Anadarko and Eagle Ford basins. Overall shale gas output is expected to reach 82.36 Bcf/d in October.

At the hub level, double digit percentage losses prevailed at the Northeast trading locations. Next-day gas prices at Algon Gates unraveled 31.2% year over year to average at $2.035/MMBtu in September, while the spot gas price index at the Transcontinental Pipeline Zone 6 hub for New York City fell 34.8% to $1.855/MMBtu. Transco Zone 6 Non-NY notched the largest percentage decline, as the hub index tumbled 35.7% over the period to $1.836/MMBtu.

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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.