Commodities
Southeast Heat Pushes Natural Gas Prices Up 40 Cents
Natural gas forward prices rallied during the Aug. 6-12 trading period due to 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 among natural gas forwards. The Southeast basis premiums ballooned as a result of the increased power burn, which reached 56 Bcf/d.
This surge in demand and constrained pipeline capacity drove up prices for natural gas forwards. As a result, natural gas forward prices rebounded during the Aug. 6-12 trading period.