The prices of natural gas at the key regional hubs in the U.S. Pacific Northwest and Western Canada have reached their lowest levels on record this year, driven by increased production in the Western Canadian Sedimentary Basin (WCSB) and high inventory levels in these regions.
According to the U.S. Energy Information Administration (EIA), monthly average natural gas spot prices at the northwestern U.S. and western Canada border pricing hubs hit historic lows in the first ten months of 2024, based on data from Natural Gas Intelligence.
Westcoast Station 2, the Western Canada benchmark, saw daily spot natural gas prices average $1.04 per million British thermal units (MMBtu) through October, with the lowest monthly average of $0.31 per MMBtu in September.
At Northwest Sumas, the key pricing hub for the U.S. Pacific Northwest, the daily spot price averaged $1.87 per MMBtu in 2024 through October, reaching its lowest monthly average of $0.97 per MMBtu in May. This marks the lowest monthly average price for the first 10 months of any year since the EIA began collecting data for this hub in 1998.
As reported by Charles Kennedy on OilPrice.com, the primary factors contributing to the low regional gas prices include high natural gas production in the WCSB since late 2022 and significant natural gas exports into the western United States.
Comparatively, the U.S. benchmark, Henry Hub, had a monthly average daily spot price of $2.20 per MMBtu in October 2024, as per the EIA’s latest Short-Term Energy Outlook (STEO).
The U.S. administration anticipates the Henry Hub price to average around $2.90 per MMBtu in 2025, driven by increasing global demand for U.S. LNG exports, which are a crucial component of U.S. natural gas demand.
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