The average price of natural gas for day-ahead delivery fell month over month in February in all U.S. regions except the Northeast.
The West reported the largest drop in February, with gas prices in the region plunging 53.89% from the prior month. The region was at a 6.5% gain year over year to land at an average of $4.876/MMBtu.
The Northeast rose by more than a third month over month, but it was also down by about a third year over year at $4.711/MMBtu. The Midcontinent recorded month-over-month and year-over-year decreases at 24.92% and 48.61% respectively, arriving at an average of $2.333/MMBtu.
The Gulf Coast fell 24.99% month over month and 49.53% year over year to an average of $2.292/MMBtu, the lowest average among all regions.
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Western hubs
Natural gas hubs in the U.S. West posted a mix of increases and decreases year over year in February, ranging from a 58.61% decline to a 56.12% rise. Many Western hubs recorded spot gas price indexes above the $5/MMBtu mark. The PG&E Gate hub, with a year-over-year price gain of 53.17%, reported the highest index in February at $7.905/MMBtu.
Supply forecasts
All shale regions in the U.S. will likely increase gas production in March compared with the prior month, the U.S. Energy Information Administration said in its monthly "Drilling Productivity Report" released Feb. 13. The EIA projected total U.S. shale gas production to rise from 96.17 Bcf/d in February to 96.59 Bcf/d in March.
Gas production in Appalachia, the region that produces the most shale gas in the U.S., is expected to increase slightly, from 35.02 Bcf/d in February to 35.10 Bcf/d in March. Production in the Haynesville Shale region is forecast to grow from about 16.47 Bcf/d to 16.60 Bcf/d during the same period.
Market prices and included industry data are current as of the time of publication and are subject to change. For more detailed market data, including power and natural gas index prices as well as forwards and futures, visit our Commodities pages.
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