
Several meteorologists predicted Dec. 30 that conditions could lead to a bitterly cold January for much of the U.S., leading natural gas prices to spike, setting another high for the year.
The National Weather Service called for below-average temperatures, primarily for the East Coast, beginning in the first week of January and potentially colder temperatures in the two following weeks.
The natural gas price for front-month futures at the Henry Hub took a corresponding leap. After trading at above $4/MMBtu, the price had fallen to about $3.95/MMBtu by mid-day, an increase of more than $0.50 from the start of trading and another high for the year.
Natural gas prices have spent most of 2024 below $2.50/MMBtu and several months below $2. The price rose past $3/MMBtu in November. According to analysts, the market was responding to oncoming demand from expanding LNG export capacity and power generation as well as the cold snap.
Recommended Reading
FERC Approves Enstor’s Salt-Dome Storage Expansion in Mississippi
2025-04-15 - The Mississippi Hub’s total natural gas capacity will reach approximately 56.3 Bcf, Enstor Gas said.
Bottlenecks Holding US Back from NatGas, LNG Dominance
2025-03-13 - North America’s natural gas abundance positions the region to be a reliable power supplier. But regulatory factors are holding the industry back from fully tackling the global energy crisis, experts at CERAWeek said.
Canadian Government to Fund Portion of Cedar LNG’s $5.96B Development Cost
2025-03-24 - The Government of Canada has pledged to contribute up to $200 million to help the Haisla Nation and Pembina Pipeline Corp. develop the $5.96 billion Cedar LNG Project
US LNG Exports May See EU Demand Drop-Off, Asian Surge
2025-03-27 - Ukrainian peace talks could end with Russian gas back on the market, Poten & Partners analysts said.
Expand CFO: ‘Durable’ LNG, Not AI, to Drive US NatGas Demand
2025-02-14 - About three-quarters of future U.S. gas demand growth will be fueled by LNG exports, while data centers’ needs will be more muted, according to Expand Energy CFO Mohit Singh.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.