Commodities
Appalachian Abundance Crushes New England Gas Prices, But Winter Uptick Looms
New England's natural gas prices have fallen to historic lows due to an abundance of supply from Appalachian and Canadian sources.
The Algonquin Citygate, a major hub in New England, has traded at its second-largest discount to Henry Hub since 1999, with prices reaching $13 or more during the spring and early summer. However, analysts expect winter to bring high prices back to the region as demand increases and supply dwindles.
The Appalachian Basin is producing an abundance of natural gas, which has weighed on prices in New England. Additionally, renewable energy sources are curtailing gas-fired generation, further reducing demand and putting downward pressure on prices.