US Spot Prices For Natural Gas Hit Record Lows In First 6 Months Of 2020 - Energy Dept.

WASHINGTON (Pakistan Point News / Sputnik - 13th July, 2020) US natural gas prices at the Henry Hub on the Gulf of Mexico coast reached record lows in the first half of the year, due in part to a novel coronavirus-related collapse in liquefied gas exports from the United States, the Energy Information Administration (EIA) said in a report on Monday.

"Monthly prices reached a low of $1.63/MMBtu [million British thermal units], the lowest monthly inflation-adjusted (real) price since at least 1989," the report said. "Beginning in March, spring weather and the economic slowdown induced by mitigation efforts for the coronavirus disease 2019 (COVID-19) contributed to lower demand, further lowering prices."

Demand for US liquefied natural gas exports fell by half with the onset of the novel coronavirus pandemic, from 9.8 billion cubic feet per day (Bcf/d) in late March to less than 4.0 Bcf/d in June, the report said.

Henry Hub in the US state of Louisiana refers to a location where a network of pipelines throughout the United States connect, making the hub one of the world's top natural gas trading locations.

The hub supplies gas to a number of export facilities on the Gulf coast, where dry gas is liquefied and loaded onto to tankers for export.