New England Gas Prices Plummet Amid Record Imports and Low Demand
New England natural gas prices have been trading near record discounts to Henry Hub in recent months. The low-cost Appalachian and Canadian natural gas supplies, coupled with lower-than-usual regional consumption, are the main reasons behind this trend. According to Natural Gas Intelligence data, Algonquin Citygate averaged 43 cents per million British thermal units (MMBtu) less than Henry Hub from April through July 2026.
This is the second-largest discount for the period and marks a significant shift from previous years when prices at Algonquin Citygate typically traded at a premium to Henry Hub during the winter months. However, with access to low-cost natural gas from Appalachia and record-high imports from Canada, New England has been able to maintain relatively low prices even in springtime.
Between April and July 2026, the Appalachia Regional average hub price was 77 cents/MMBtu lower than Henry Hub, the second-widest discount ever reported. Meanwhile, monthly net flows of natural gas from Canada into New England averaged a record 0.4 billion cubic feet per day (Bcf/d) during the same period.
The increase in regional supply coincided with lower natural gas demand in New England. Total natural gas consumption was 5% lower than during the same period in 2025, while electricity generation from natural gas decreased by 6%. In contrast, wind and utility-scale solar generation increased by 59% and 29%, respectively.