Spot natural gas prices remain below $2/mmBtu

As the calendar turns to March, and with springtime only a few weeks away, spot natural gas prices remain unusually cheap.

Each of the 10 regions tracked by the Energy Information Administration (EIA) listed a spot natural gas price of less than $2/mmBtu on March 1. New England was the most expensive at $1.95 and the Mid-Atlantic was the cheapest at only $1.04.

In addition, the NYMEX/Henry Hub price for April delivery of natural gas is only $1.71/mmBtu, according to the EIA data. By comparison, the same benchmark price in late February 2015 was about $2.69/mmBtu, according to EIA data.

Meanwhile, the Wall Street Journal reported Feb. 29 that major shale producers are starting to scale back oil and natural gas production in light of weak international commodity prices.

Spot power prices also remain soft as the markets enter the shoulder season. Every organized market tracked by EIA listed a spot power price at less than $25/MWh.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.