EIA: natural gas prices fall in 1H23
Published by Poppy Clements,
Assistant Editor
Hydrocarbon Engineering,
The average monthly spot natural gas price at the US benchmark Henry Hub fell 34%, or US$1.12 per million Btu, to US$2.18 per million Btu between January and June 2023, according to data from Refinitiv Eikon.
Relatively mild temperatures, record production levels, and higher-than-average inventories reduced natural gas prices. When adjusted for inflation, 2023 has seen the lowest average monthly Henry Hub price since June 2020.
Relatively mild winter temperatures reduced demand for space heating across most of the US in 1Q23, reducing natural gas consumption. The West Census Region was the only part of the lower 48 states to experience relatively colder winter temperatures this winter than last.
US natural gas consumption averaged 103 billion ft3/d between 1 January 2023 – 30 April 2023, down by 1 billion ft3/d from the same period in 2022. The decline was led by the residential and commercial sectors, where combined consumption fell 18% in January 2023 and 12% in February 2023 compared with the same months in 2022. Industrial natural gas consumption also decreased slightly, falling 3% in the 1Q23 compared with 1Q22. However, the electric power sector, which consumes more natural gas than any other sector, used a record-high average of 30.78 billion ft3/d between January 2023 – March 2023, up 8.4% compared with the same period in 2022. This increase was driven by the increased winter heating demand in the West.
US dry natural gas production has outpaced demand so far in 2023, contributing to lower natural gas prices. Dry natural gas production has remained at record highs in 2023, averaging over 101 billion ft3/d each month. In 1H23, dry natural gas production increased 7%, or 6.9 billion ft3/d, from the same period in 2022.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/25072023/eia-natural-gas-prices-fall-in-1h23/
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