Southeast Heat Drives Natural Gas Forward Prices Skyward
Natural gas forward prices saw a significant rebound during the August 6-12 trading period, driven by rising power demand and constrained pipeline capacity in the Southeast.
The gains topped 40 cents at Southeast hubs, with Transco Zone 4 leading the board. Power burn reached a record high of 56 Bcf/d during this period, further straining pipeline capacity.
Southeast basis premiums ballooned as a result, reflecting the increased demand and scarcity of natural gas in the region.