March bidweek average natural gas prices in the US weakened notably month on month, both on regional and national levels, with the national average decreasing $1 to trade at $2.45/MMBtu, as assessed by S&P Global Platts Wednesday.
This downward movement was mimicked across the country, with the steepest fall in the Northeast, where the regional average dropped $2.53, or 49%, to trade at $2.64/MMBtu during March bidweek.
The largest downward price movement in the Northeast was seen at Algonquin city-gates, which fell $4.13, or a whopping 56%, month on month to trade at $3.26/MMBtu.
Along the Canadian border, Iroquois receipts also saw significant weakening, shedding $2.28 to settle at $2.91/MMBtu, while across the border in New England, Iroquois Zone 2 fell by slightly more, sliding $2.80/MMBtu to trade at $2.98/MMBtu.
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In Appalachia's production region, March index prices fell by an average of 87 cents, with the regional average coming in at $2.14/MMBtu, a 29% month-on-month decrease.
The largest drop in Appalachia was seen at Transco Leidy Line receipts, which weakened 97 cents to $1.93/MMBtu. Two other Appalachian points, Millennium, East receipts and Tennessee, Zone 4-300 leg receipts, saw sub-$2/MMBtu March index prices.
The March bidweek price at the benchmark Henry Hub
decreased by 77 cents a 23% decrease month on month, to settle at $2.62/MMBtu, its lowest monthly index price since June 2016.
Elsewhere in the US, prices saw similar downward movement. In the Southeast, Texas Eastern, M-1 30-inch saw the largest movement, shedding 80 cents to trade at $2.49/MMBtu. All other points in the region saw losses in the high seventies.
Prices across the Central US moved in the same direction, with Chicago-NIPSCO and NGPL, Midcontinent both dropping about 25% each, to trade at $2.54 and $2.32/MMBtu, respectively. In the Southwest, Transwestern-San Juan Basin experienced the largest downward movements, dropping 87 cents to settle at $2.34/MMBtu, while the regional average shed 80 cents to $2.45/MMBtu.
In the Rockies region, the largest weakening was seen along the border, where Northwest, Canadian border (Sumas) shed nearly $1 to trade at $2.20/MMBtu.
--Samer Mosis, email@example.com
--Edited by Richard Rubin, firstname.lastname@example.org