![]() Total consumption of natural gas across all sectors in the Northeast declined 14% (2.4 billion cubic feet per day ) week over week, led by a 30% (2.2 Bcf/d) decline in residential and commercial sector consumption, according to data from S&P Global Commodity Insights. Daily average temperatures in the Boston Area were 69☏ last Thursday, 21☏ above normal, declining to 48☏ yesterday, which is 3☏ below normal. At the Algonquin Citygate, which serves Boston-area consumers, the price increased 26 cents from $1.70/MMBtu last Wednesday to $1.96/MMBtu yesterday. In the Northeast, prices rose this week, remaining relatively low and close to the national average price, despite fluctuating with weather.Price changes from last Wednesday to yesterday at major pricing hubs ranged from a decrease of $1.23/MMBtu at Opal in southwestern Wyoming to an increase of 61 cents/MMBtu at Waha in western Texas. Prices increased at most major pricing hubs across the country compared with last Wednesday, while some prices declined in the West. Select regional spot prices: Natural gas spot price changes were mixed this report week (Wednesday, April 12, to Wednesday, April 19).The price of the 12-month strip averaging May 2023 through April 2024 futures contracts climbed 10.8 cents to $3.006/MMBtu. Henry Hub futures prices: The price of the May 2023 NYMEX contract increased 12.9 cents, from $2.093/MMBtu last Wednesday to $2.222/MMBtu yesterday.Henry Hub spot price: The Henry Hub spot price fell 1 cent from $2.21 per million British thermal units (MMBtu) last Wednesday to $2.20/MMBtu yesterday.Market Highlights: (For the week ending Wednesday, April 19, 2023) TC Energy’s Gillis Access project (1.5 Bcf/d).Momentum Midstream’s New Generation Gas Gathering (NG3) (1.7 Bcf/d).Williams’ Louisiana Energy Gateway (1.8 Bcf/d).In addition, three new pipeline projects that would add 5.0 Bcf/d of takeaway capacity out of the Haynesville by the end of 2024 include: Gulf Coast, were the most recent pipeline projects to enter service (December 2021) in the area. The Enterprise Products Partners’ Gillis Lateral pipeline and the associated expansion of the Acadian Haynesville Extension, which move natural gas from the Haynesville to demand centers and liquefied natural gas terminals along the U.S. Pipeline takeaway capacity out of the Haynesville is currently estimated to be around 16 Bcf/d, according to S&P Global Commodity Insights. In the first three months of 2023, as natural gas prices fell, the number of active rigs in the Haynesville plateaued at about 68 rigs. In the Haynesville, an average of 65 rigs were in operation in 2022, which was 43% more than the average number of active rigs in 2021. The rise in active natural gas-directed rigs in the Haynesville in 2022, as reported by Baker Hughes, followed rising natural gas prices. As natural gas prices rose in 2022, economics for developing new wells in the Haynesville improved, which led some producers to add more rigs in the play and increase production. Drilling costs in the Haynesville tend to be higher because natural gas wells in the play are deeper than in other plays. The Henry Hub price declined in the second half of 2022 to average $5.53/MMBtu in December but was 26% higher than at the start of the year. ![]() benchmark Henry Hub reached a monthly high for the year in August at $8.81 per million British thermal units (MMBtu). Natural gas prices rose relatively steadily throughout most of 2022 as well. Natural gas production in the Haynesville increased in 2022, from an average 12.4 Bcf/d in January to 14.1 Bcf/d in December. Altogether, the Marcellus, the Permian, and the Haynesville account for 55% of U.S. In 2022, dry natural gas production averaged 25.2 Bcf/d from the Marcellus (83% of Appalachian Basin production), and 15.4 Bcf/d from the Permian play. The Haynesville is the third-largest shale gas-producing play in the United States, behind the Permian play in Texas and New Mexico, and the Marcellus play in the Appalachian Basin. ![]() Haynesville natural gas production in February accounted for about 14% of all U.S. Haynesville natural gas production reached a record high in February 2023ĭry natural gas production from the Haynesville shale play in northeastern Texas and northwestern Louisiana reached new highs in February 2023, averaging 14.4 billion cubic feet per day (Bcf/d), 9% more than the annual 2022 average of 13.2 Bcf/d, according to Enverus. ![]()
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