Texas Heat Wave Sends US Natgas Prices Soaring Amid Record Production
US natural gas prices surged on Tuesday as forecasts predicted prolonged and intense heat in southern and western parts of the country. The temperature is expected to soar, with Houston temperatures averaging around 100°F between August 20 and 23.
This has led to increased electricity demand, placing additional pressure on gas-fired power plants and the regional grid. Peak demand on the Texas power grid could reach a new record as wind generation declines.
However, strong domestic production limited price gains. Average output in the Lower 48 states has reached 111.6 billion cubic feet per day in August, surpassing July's record of 110.7 bcfd. Additionally, gas flows to the nine major US LNG export facilities are averaging 17.2 bcfd in August, unchanged from July.