With relatively high volumes of natural gas in storage and milder temperatures, spot prices still increased. For the week (Wednesday to Wednesday), the spot price at the Henry Hub increased 29 cents per million British thermal units (mmBtu), or 4 percent, to $7.46. The price is $1.76, or 31 percent, above last year's level of $5.70. Prices at the Henry Hub are to remain relatively high, averaging $6.95 in 2005 according to the Energy Information Administration's Short-Term Energy Outlook, which was released April 7.
The amount of natural gas in storage in the East Region decreased 0.4% for the week ending April 1 to 546 billion cubic feet which was 54 billion cubic feet above the 5-year average. Nebraska is a part of the East Region/a> (see map) which is a major natural gas consumer, particularly in the residential and commercial sectors. The industrial/a> sector, which includes agriculture, is also a major consumer in this state. Most of the gas is supplied from the Producing Region with a fair amount imported from Canada. The Henry Hub in southern Louisiana is a major market center with interconnections for many of the pipelines that transport U.S.-produced gas to the East Region. Furthermore, the Henry Hub is the preferred reference point for prices for most of the domestic gas destined for the East. Therefore, market conditions and developments in the East Region and price movements and trends at the Henry Hub are usually highly correlated.
Notes: An archive is available. Divide the price by ten (10) to obtain the price per hundred cubic feet (ccf) or the approximate price per therm.