With only eight days left in the traditional heating season, high volumes of working gas in storage and a decrease in oil prices offset temperatures that were colder than normal. For the week (Wednesday to Wednesday), spot prices at the Henry Hub increased 3 cents per million British thermal units (mmBtu) to $7.11. The price is $1.75, or 33 percent, above last year's level.
The amount of natural gas in storage in the East Region decreased 10.2% for the week ending March 18 to 592 billion cubic feet which was 59 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
Natural Gas Spot Prices at the Henry Hub 2004 and 2005