U.S. Natural Gas Keeps Rising as Snow, Storms Hit West Coast

A series of pipes direct natural gas at a Williston Basin Interstate Pipeline Co., a subsidiary of MDU Resources Group Inc., compression station in Bismarck, North Dakota, U.S., on Friday, Feb. 10, 2012. Photographer: Daniel Acker , Bloomberg

Ann Koh, Bloomberg News

Dec 27, 2022

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(Bloomberg) -- U.S. natural gas futures extended gains -- after the biggest jump in two months -- as storms brought snowfall to parts of the country. 

Futures for January delivery rose 1.7% to $4.127 per mmbtu at 10:13 a.m. in Singapore on the New York Mercantile Exchange. The contract settled 8.8% higher at $4.06 on Monday for the steepest one-day advance since Oct. 25. 

Gas demand is receiving a short-term boost from chillier-than-normal weather. Temperatures are expected to fall on the West Coast, and in the Midwest and Northeast from Jan. 2 to 6, according to forecasts from the NOAA. Winter storms have already caused flight cancellations over the Christmas weekend in Seattle, and more delays are expected.

Latest figures from BNEF:

  • Lower 48 dry gas production ~97.9 bcf Monday, +6.4% y/y
  • Lower 48 total gas demand ~84.5 bcf, -4.8% y/y
  • Estimated gas flows to LNG export terminals ~12.4 bcf, or -3.3% w/w

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