Natural gas prices at key hubs in the U.S. Pacific Northwest and Western Canada have reached record lows in 2024, driven by increased production in Western Canada and high inventory levels.
According to the U.S. Energy Information Administration (EIA), monthly average spot prices for natural gas at major pricing hubs in these regions hit historic lows in the first ten months of 2024. Data from Natural Gas Intelligence showed that prices at these hubs continued their downward trend, reflecting strong production and high gas storage.
At the Westcoast Station 2 hub in Western Canada, located near Fort St. John, British Columbia, prices averaged just $1.04 per million British thermal units (MMBtu) through October, with a low of $0.31 per MMBtu in September. This hub is situated close to the Western Canadian Sedimentary Basin, a major gas-producing area.
Similarly, at the Northwest Sumas hub in the U.S. Pacific Northwest, prices averaged $1.87 per MMBtu for the first ten months of 2024. May saw the lowest monthly average of $0.97 per MMBtu, making it the lowest price for this period since the EIA started tracking data for the hub in 1998.
The main factors behind these low prices are the high production levels in the Western Canadian Sedimentary Basin since late 2022 and strong natural gas exports to the western U.S.
In contrast, the U.S. benchmark price at Henry Hub was $2.20 per MMBtu in October 2024, according to the EIA’s latest Short-Term Energy Outlook. The U.S. expects the Henry Hub price to rise to an average of $2.90 per MMBtu in 2025, driven by increasing global demand for U.S. LNG exports.
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