Henry Hub gas prices surged to unprecedented levels as extreme winter weather tightened US gas balances, highlighting the vulnerability of supply and power systems during severe cold events.
Henry Hub spot prices surged to an all-time high of over $30/mmbtu as Storm Fern is hitting the US with full force.
Henry Hub spot prices rose by almost tenfold through last week, with Storm Fern driving up space heating demand, while freeze-offs are creeping in and limiting dry gas production, especially in the southern production basins.
In addition, wind power almost halved through last week, while gas-fired power generation surged by 35% over the same period, providing essential back-up to a struggling electricity system.
Meanwhile, other less liquid gas hubs are now nearing $100/mmbtu while more than 800,000 households are facing power outages.
What is your view? How will Storm Fern impact the US gas market? How do you see freeze-offs evolving? And how could this affect TTF and JKM prices?
Source: Greg Molnar (LinkedIn)
