Natural gas prices increased at most market locations east of the Rockies since last Wednesday, January 12, as a strong cold front moved into the northern portion of the region. For the week (Wednesday to Wednesday), spot prices at the Henry Hub increased 32 cents per million British thermal units (mmBtu), or amost 5.5 percent, to $6.21.
Natural gas in storage in the East Region fell 3.8% for the week ending January 14 to 1,438 billion cubic feet which is 180 billion cubic feet above the 5-year average. Nebraska is a part of the East Region (see map) which is a major natural gas consumer, particularly in the residential and commercial sectors. The industrial sector, which includes agriculture, is also a major consumer in this state. Most of the gas is supplied from the Producing Region with a fair amount imported from Canada. The Henry Hub in southern Louisiana is a major market center with interconnections for many of the pipelines that transport U.S.-produced gas to the East Region. Furthermore, the Henry Hub is the preferred reference point for prices for most of the domestic gas destined for the East. Therefore, market conditions and developments in the East Region and price movements and trends at the Henry Hub are usually highly correlated.
Notes: An archive is available. Divide the price by ten (10) to obtain the price per hundred cubic feet (ccf) or the approximate price per therm.
