US Natgas Prices Soar to 8-Week High on LNG Flows and Mild Weather

U.S. natural gas futures surged to an eight-week high on September 9, driven by increased flows to liquefied natural gas (LNG) export plants and unseasonably mild weather that sustained air conditioning demand.

The front-month gas futures for October delivery on the New York Mercantile Exchange rose 3.1 cents, or 1.0%, to $2.987 per million British thermal units, its highest close since July 9 for a second day in a row.

Analysts attributed the gains to Tropical Storm Edouard, which passed over the Texas and Louisiana coasts, as well as ongoing high demand for gas from power generators due to hotter-than-normal weather. About 40% of U.S. power generation comes from gas-fired plants.