Southeast Natural Gas Basis Spreads Widen Amid Late-Summer Demand

The Southeast natural gas basis spreads have widened significantly as late-summer demand puts pressure on pipeline systems already running near capacity.

Specifically, the September natural gas basis across the Southeast has strengthened sharply relative to October. This is due to lingering cooling demand that keeps pipeline systems tight.

One notable example is the Florida Gas Zone 3 spread, which has doubled as a result of this demand pressure. Additionally, Transco's CS 60 runs near limits, further exacerbating the issue.