low Pacific region storage = high spot pricesNatural Gas Spot Prices at Major Western US Trading Hubs Exceed Other Markets' Prices, EIA Reports
05:57 AM EST, 12/23/2022 (MT Newswires) -- Daily natural gas spot prices at three major trading hubs in the western US on Dec. 21 exceeded $50 per million British thermal units, the highest level of any other market, the US Energy Information Administration reported Thursday.
Gas spot prices at Pacific Gas & Electric Citygate, Sumas on the Canada-Washington border and Malin, Oregon, also settled $48.12/MMBtu above the national benchmark Henry Hub gas price, the EIA said.
PG&E Citygate and Malin, Oregon, reported the highest natural gas spot prices since December 2000, the agency noted, citing pricing data from Natural Gas Intelligence.
The price increases can be attributed to widespread, below-normal temperatures; high natural gas consumption, reduced natural gas flows; pipeline constraints, including maintenance in West Texas; and low natural gas storage levels in the Pacific region, according to the agency.