Natural Gas Weekly Update

The Henry Hub spot price rose from $3.91 per million British thermal units (MMBtu) last Wednesday to $4.05/MMBtu yesterday.

Henry Hub up 14 cents to $4.05

Natural gas spot price movements were mixed this report week (Wednesday, July 21 to Wednesday, July 28). The Henry Hub spot price rose from $3.91 per million British thermal units (MMBtu) last Wednesday to $4.05/MMBtu yesterday.

The August 2021 NYMEX contract expired yesterday at $4.044/MMBtu, up 8¢/MMBtu from last Wednesday, and topped $4.00/MMBtu for the fourth time this month. The September 2021 NYMEX contract price increased to $3.967/MMBtu, up 3¢/MMBtu from last Wednesday to yesterday. The price of the 12-month strip averaging September 2021 through August 2022 futures contracts climbed 6¢/MMBtu to $3.685/MMBtu.

The net injections to working gas totaled 36 billion cubic feet (Bcf) for the week ending July 23. Working natural gas stocks totaled 2,714 Bcf, which is 16% lower than the year-ago level and 6% lower than the five-year (2016–2020) average for this week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 21¢/MMBtu, averaging $9.44/MMBtu for the week ending July 28. Ethane prices rose 4%, which was less than the 7% natural gas price increase at the Houston Ship Channel, narrowing the ethane premium to natural gas by 9% on a heat-value parity. Propane prices remained relatively unchanged as strong production was balanced by elevated exports. Normal butane prices rose 4%, and isobutane and natural gasoline prices rose 3%, following the 3% increase in Brent crude oil prices.

According to Baker Hughes, for the week ending Tuesday, July 20, the natural gas rig count remained flat at 104. The number of oil-directed rigs rose by 7 to 387, increasing by 7 the total rig count, which now stands at 491.