Natural Gas Price Today

Understanding Natural Gas Pricing

Natural gas is priced at the Henry Hub in Erath, Louisiana, which serves as the delivery point for NYMEX natural gas futures (NG=F). The Henry Hub price is the most widely used benchmark for natural gas in North America and increasingly influences global LNG pricing through export contracts.

Unlike crude oil, natural gas prices are heavily influenced by weather patterns. Cold winters drive heating demand, while hot summers increase electricity consumption for air conditioning. The EIA publishes weekly natural gas storage data every Thursday, which is one of the most market-moving reports for gas prices.

US natural gas production has grown significantly due to shale drilling in formations like the Marcellus, Permian, and Haynesville basins. This abundant supply has kept Henry Hub prices relatively low compared to international benchmarks like TTF (Europe) and JKM (Asia).

Seasonal Price Patterns

Natural gas exhibits strong seasonality. The “injection season” (April to October) is when utilities add gas to underground storage, building reserves for winter. The “withdrawal season” (November to March) is when storage is drawn down for heating. Prices tend to peak in winter months and trough in shoulder seasons.

The storage level relative to the five-year average is a key indicator. When storage falls below the five-year average, prices tend to rise as markets price in potential scarcity during peak demand periods.

LNG Exports and Global Impact

US LNG exports have expanded rapidly, with terminal capacity growing each year. This connects the formerly isolated US gas market to global prices. When international gas prices (TTF in Europe, JKM in Asia) are significantly higher than Henry Hub, US LNG exports increase, which can put upward pressure on domestic prices.