Autumn Trend Continues as Fewer Hubs Price Above Henry Hub
As autumn approaches, natural gas spot basis premiums to Henry Hub are following their seasonal trend of thinning. So far in September, fewer hubs have been pricing above the benchmark than usual, despite a heat wave in the Southeast that has kept temperatures stubbornly high.
The Southeast is typically one of the regions with the strongest basis premiums during this time of year, but FGT Citygate currently leads the pack with its premium to Henry Hub. However, other hubs in the Rockies and Southwest have seen their premiums fall off the list.
It's worth noting that a heat wave can be unpredictable, and it's unclear how long the Southeast will continue to experience high temperatures. The region is expected to see some relief soon, but for now, natural gas prices remain elevated.