Too Much Gas, Too Little Cold: Northeast Spot Prices Stuck Near $1

Time for another check of what our Marcellus/Utica (M-U) molecules are selling for, and the news is about what you'd expect after weeks of mild fall weather: not much. On Wednesday, the Henry Hub spot price (the national benchmark in Louisiana) averaged $2.610 per MMBtu (million British thermal units, roughly 1,000 cubic feet of gas). Here in the Northeast, gas for Thursday delivery sold for about a dollar. Mid-Atlantic gas (Texas Eastern M-3) went for $1.06, New York City (Transco Zone 6 NY) for $1.03, and New England (Algonquin Citygate) for $1.31. On Thursday, Texas Eastern M-2, the main pricing point for gas produced in southwestern PA, West Virginia, and Ohio, ticked up 5 cents to $1.100. That's still less than half the Henry Hub price. A new NGI analysis explains why: heating demand in the East is running way behind last year, so the region has more gas than it needs. Even Canada has quit sending us much gas.

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