![]() Why are natural gas prices increasing now?.What factors impact the cost of natural gas?. ![]() Visit the EnergySage Marketplace to save on your energy bills by going solar!.The best way to protect yourself is to electrify your home: with solar, storage, and air source heat pumps, you can significantly reduce your reliance on volatile fossil fuel prices.Electricity bills will also increase for many Americans, with National Grid customers in eastern Massachusetts expecting a 64 percent uptick in bills.On average, EIA predicts natural gas heating bills to increase by 28 percent or about $200 more cumulatively between October 2022 and March 2023.Natural gas prices are anticipated to be higher this winter than last winter – the East South Central region will be hit the hardest in the U.S.Several pricing hubs in the western United States averaged over $48/MMBtu above Henry Hub on December 21 due to colder-than-normal temperatures and regional pipeline constraints.The spot price at the Waha Hub in West Texas averaged $1.26/MMBtu below the Henry Hub in 2022, largely due to limited pipeline takeaway capacity in the region and to periods of pipeline maintenance that decreased takeaway capacity.Prices at key Appalachian trading hubs continued to remain at a $0.68/MMBtu average discount to Henry Hub according to pricing data from Natural Gas Intelligence due to limited pipeline takeaway capacity in the region.The natural gas price began to increase again in December because of dropping winter temperatures that increased demand for natural gas for heating.Ĭapacity constraints also affected natural gas prices throughout the year on a regional level for example: The Henry Hub natural gas spot price reached an annual low of $3.46/MMBtu on November 9, down 65% from August 22. ![]() By November, working natural gas in underground storage was close to the previous five-year average. The natural gas spot price decreased late in the third quarter because of high natural gas production and the resulting above-average storage injections in September. ![]() The Henry Hub natural gas spot price began to rise again in July and peaked on August 22, 2022, at $9.85/MMBtu, 60% higher than the daily Henry Hub natural gas spot price at the beginning of the year. LNG exports by about 2 billion cubic feet per day (Bcf/d), and more natural gas was diverted to underground storage. The Henry Hub natural gas spot price increased above $9.00/MMBtu in early June, but it then fell by 40% by July 4 because of a fire and the subsequent shutdown of the Freeport LNG export terminal. In May, weather-related demand for natural gas for electricity generation and increased uncertainty around working natural gas storage injections led to an increase in natural gas prices. Despite these price fluctuations, the $4.67/MMBtu average spot price was lower in the first quarter of 2022 than during the rest of the year. liquefied natural gas (LNG) exports in Europe and rising, weather-driven demand for natural gas in the United States led to relatively wide Henry Hub price ranges in February and March, between $4.03/MMBtu and $6.70/MMBtu. natural gas production due to production freeze-offs in January and February and high net withdrawals of natural gas from storage caused the natural gas price to increase. On a daily basis, the Henry Hub spot natural gas price ranged from $3.46/MMBtu to $9.85/MMBtu, reflecting significant day-to-day price changes.ĭuring the first quarter of 2022, declining U.S. The 2022 average Henry Hub real natural gas spot price increased over 53% from 2021, the fourth-largest year-over-year increase in natural gas prices on record, behind only 2000, 2003, and 2021. ![]() natural gas spot price at the national benchmark Henry Hub in Louisiana averaged $6.45 per million British thermal units (MMBtu), the highest annual average-in both real and nominal terms-since 2008, based on data from Refinitiv Eikon. ![]()
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