Why are Henry Hub prices so low?
Why are Henry Hub prices so low?
NYMEX Henry Hub tests out lower ranges as winter supply concerns ease. NYMEX Henry Hub repeatedly fell below the $5/MMBtu mark in recent trading, with analysts attributing the decline to a mild start to the heating season, more gas in storage, and the US benchmark’s increased exposure to global markets.
What is the difference between Henry Hub and Nymex?
NYMEX is the cost of the commodity, or the actual gas molecules, and is based on the price of gas at a set point: Henry Hub, Louisiana. Basis is the regional differential to the NYMEX Henry Hub price and can be an additional adder or discount to the NYMEX price.
What is Nymex Henry Hub?
Henry Hub is a natural gas pipeline located in Erath, Louisiana, that serves as the official delivery location for futures contracts on the New York Mercantile Exchange (NYMEX). The hub is owned by Sabine Pipe Line LLC and has access to many of the major gas markets in the United States.
What does AECO stand for natural gas?
AECO (Alberta Energy Company): The AECO Hub is the Canadian benchmark price for natural gas on the Nova Gas Transmission Ltd. (NGTL) system, and is located at the Niska, Alberta gas storage facilities.
Why is it called Henry Hub?
History. The “Henry” hub is so named for its location in the Henry hamlet of Erath, which was named after the Henry High School that stood there until damaged by the flooding and storm surge from Hurricanes Ike and Rita, though the natural gas facilities suffered minimal damage.
Where is the Waha hub?
West Texas
Recently completed pipeline projects in Texas and Mexico have increased natural gas transportation capacity from the Waha Hub—located near Permian Basin production activities in West Texas—to the U.S. Gulf Coast and Mexico.
Will natural gas prices increase?
The U.S. Energy Information Administration’s winter 2021 energy price forecasts project that homes heated with natural gas, fuel oil, and propane will see average price increases of 30%, 43%, and 54%, respectively. Those who heat their homes with electricity, on the other hand, should expect a modest 6% increase.
What is AECO C price?
AECO-C. The AECO “C” spot price is the Alberta gas trading price. It has become one of North America’s leading price-setting benchmarks. To find the AECO-C spot price and other market prices, go to Natural Gas Exchange (NGX).
What’s traded on Nymex?
NYMEX offers trading in crude oil, petroleum products, natural gas, coal, electricity, gold, silver, copper, aluminum, platinum group metals, emissions, and soft commodities contracts for trading and clearing virtually 24 hours a day.
How do you convert BTU to MMBtu?
To convert a british thermal unit measurement to a million BTU measurement, divide the energy by the conversion ratio. The energy in million BTU is equal to the british thermal units divided by 1,000,000.
What is the price differential between AECO-C and Henry Hub?
Price differential: The price differential between AECO-C and Henry Hub reflects transportation differentials, regional supply and demand balances, infrastructure constraints, and the U.S./Canadian dollar exchange rate.
What is the purpose of the AECO Hub?
This Hub serves as the reference point for establishing the NOVA Inventory Transfer, (“AB-NIT”) price for users of the transmission pipelines in the province. Gas prices are often quoted in terms of the basis differential between AECO Hub prices and Henry Hub prices.
What will the Henry Hub price be in 2021?
Henry Hub: The Henry Hub price is projected to increase to US$3.01/MMBtu in 2021 and to US$4.14/MMBtu by 2030. Demand is anticipated to increase, primarily driven by growth in U.S. liquefied natural gas (LNG) and pipeline exports.
What does the new pipeline rule change mean for AECO?
The pipeline rule change falls short of immunizing the Western Canadian gas value yardstick, AECO, against the downward demand and price pressure on the Henry Hub benchmark in the United States, said the Alberta firm.
