East Texas basis down over 20 cents this April Southeast LNG demand up 1.6 Bcf/d in 2022 Texas-Louisiana forward spreads wider in 2023 Premium gas prices at the US benchmark Henry Hub are driving more natural gas from Texas eastbound as the Gulf Coast market prices up to meet record LNG exports and a resurgence in industrial demand.
Last autumn, as spot gas prices at the Henry Hub tested historic highs at over $5/MMBtu, the cash markets in East Texas appeared to dislocate, widening their discount to the benchmark. In April, basis prices at key East Texas locations are down sharply on the year. At Katy Hub, the cash market has traded nearly 18 cent behind Henry Hub; at Houston Ship Channel prices have averaged about 20 cents below the benchmark. In April 2020, […]