Southeast Gas Prices Soar Past Winter Peaks Amid Record Demand

Southeast natural gas premiums have reached levels typically seen only during winter months, driven by record September power demand and pipeline constraints. According to a recent report from Natural Gas Intelligence, spot prices in the region are outpacing Henry Hub benchmarks. The premium on Transco Zone 4 has exceeded 150%, while Florida Gas Zone 3 set a new record.

The Tennessee Valley Authority (TVA) reported power demand running 29% above average, putting additional pressure on pipelines already operating near capacity. These factors have created a perfect storm for natural gas prices in the Southeast, resulting in premiums rivaling those seen during winter peaks.