Outside of New England, prices at most locations remain flat with warmer temperatures. Natural gas prices at most trading locations remained at or near their report week start point, Wednesday to Wednesday, as seasonal temperatures held through the week. With the exception of New England, most locations stayed within 10¢ of their price last Wednesday through the report week. The Henry Hub spot price last Wednesday was $2.77/MMBtu and gained 5¢ through Friday, before dropping to end the week at $2.74/MMBtu.
Northeast prices move down as temperatures moderate. While Mid-Atlantic and New York area trading locations were at or below Henry Hub through the week, prices in New England remained higher. Prices at the Algonquin Citygate, which serves Boston, and at Tennessee Zone 6 200L, serving New England outside of Boston, started the week $11.91/MMBtu and 11.22/MMBtu, respectively. With moderating temperatures, prices at these locations declined later in the report week, but remained above Henry Hub. Yesterday, the Algonquin Citygate price settled to end the week at $3.19/MMBtu, and Tennessee Zone 6 200L closed at $3.07/MMBtu.
Prices in the Northeast, outside of New England, remained below $3/MMBtu throughout the week. At New York's Transcontinental Zone 6 (Transco Zone 6 NY), prices started the week last Wednesday at $2.83/MMBtu and closed the week at $2.54/MMBtu yesterday. Chicago Citygate in the Midwest also remained low, closing the report week at $2.74/MMBtu yesterday.
Marcellus-area prices trade down through the week. Prices at trading locations in the Marcellus area decreased overall this week, and Marcellus continues to be the lowest-priced trading area in the country. At Tennessee's Zone 4 trading point, which represents Marcellus deliveries on Tennessee's pipeline system, prices began the week at $1.47/MMBtu, dropped to $1.40/MMBtu on Friday, rose to $1.55/MMBtu on Monday, then slid lower to close at $1.22/MMBtu on Wednesday.
Prices on Transco's Leidy Line also ended the report week down from its starting price, declining 23¢, Wednesday to Wednesday, and closing at $1.31/MMBtu yesterday. Dominion South, which serves customers in portions of Pennsylvania, Ohio, Maryland, West Virginia, and Virginia, started the week higher than other Marcellus locations at $2.05/MMBtu, then fluctuated through the week to close the report week down 46¢ at $1.59/MMBtu.
Nymex prices decrease. At the Nymex, the near-month (April) contract fell this week from $2.920/MMBtu last Wednesday to $2.723/MMBtu. Reports of slowing natural gas withdrawals and the arrival of moderate seasonal temperatures, contributed to this decline. The 12-month strip (the average of the 12 contracts between April 2015 and March 2016) decreased from $3.033/MMBtu last Wednesday to $2.874/MMBtu yesterday.
Production increases, imports fall. Total natural gas supply increased 0.4% from last week with U.S. dry gas production posting a year-to-date high of 73.2 Bcf/d on Sunday and holding that level through Monday. This was largely because of record Northeast production which hit an all-time high of 19.9 Bcf/d, according to data from Bentek Energy. Dry gas production is 0.5% more than last week, and 8.8% greater than the same week last year. With temperatures holding close to normal levels across much of the country, imports of natural gas from Canada declined 0.4% from the previous week. Imports fell in all regions except the Northeast, where temperatures remained cool. Sendout of liquefied natural gas also declined from last week.
Consumption falls at the end of the report week. Over the report week, total domestic consumption showed large daily movements as temperatures shifted between above- and below-average. Seasonal, spring temperatures over the weekend, drove demand temporarily lower, with consumption rebounding on Monday, before falling significantly yesterday. For example, domestic consumption fell more than 10%, close to 10 Bcf/d, from Tuesday to yesterday. Overall, total domestic consumption grew 7.8% week-over-week, but was 2.9% less than the same week last year. Residential and commercial consumption drove most of this increase, with gains of 19.5% from last week. Industrial consumption increased as well, moving up by 1.2%. Nationally, power burn fell 0.5%, but there were modest regional increases in the Northeast, Southeast, and Texas. The largest of these was 4.5% seen in the Southeast.