EIA: No Strong Rebound for Natural Gas in 2012
Friday, January 06, 2012
The U.S. Energy Information Administration has reported that quotes at eight major pipeline pricing points indicate natural gas prices will rise somewhat, but remain relatively low in 2012.
The EIA noted that forward prices for the winter of 2011-2012 are the lowest in a decade. Natural gas spot prices were depressed throughout 2011, relative to prior years, and hit a two-year low in November.
The bureau said that of the eight major trading points in the U.S., only Transco Zone 6-NY (New York City) and Pacific Gas & Electric Citygate (Northern California) have posted 2012 forward monthly price ranges that included prices above $4/MMBtu. It said the Transco Zone 6 price was due to recent cold weather demand.
The EIA said most U.S. pipeline pricing points closely mirror the 2012 forward prices at the benchmark Henry Hub in Louisiana, U.S.A. Northeast U.S. gas prices behave differently, with forward prices that are higher in the winter months due to anticipated pipeline capacity constraints during high demand periods.
For more information: www.eia.gov