Northeast Natural Gas Falls First Day in Three as Weather Warms

The price of natural gas for next- day delivery in the U.S. Northeast slipped for the first time in three days on forecasts of moderating temperatures that may reduce demand for the heating fuel.

Temperatures may be normal across much of the mid-Atlantic tomorrow, according to Frontier Weather Inc. in Tulsa, Oklahoma. Temperatures were below-normal throughout the Northeast today.

Wholesale natural gas for next-day delivery at the Transco- Z6 hub, which transports the fuel to the New York City area, tumbled $3.0398, or 27 percent, to $8.2862 per million British thermal units on the Intercontinental Exchange. Gas at the Tetco-M3 hub, which also transports gas to New York, fell 81.67 cents, or 16 percent, to $4.1955.

Gas for next-day delivery at the Henry Hub in Erath, Louisiana, dropped 6.5 cents, or 1.7 percent, to $3.8289. The hub is the benchmark for gas futures traded on the New York Mercantile Exchange.

Scheduled deliveries to homes in the U.S. and Canada declined 4.6 percent to 37.6 million dekatherms (36.5 billion cubic feet), according to data compiled by Bloomberg as of 2:20 p.m. inNew York. That was the lowest level since Nov. 30.

Residences in New York were to receive 3.7 million dekatherms of gas, 4.1 percent fewer than yesterday, Bloomberg data show. The decline was the first in six days.

Scheduled shipments for U.S. power plants were to be down 0.4 percent to 11.1 million dekatherms.

The low temperature early today in New York was 21 degrees Fahrenheit (minus 6 Celsius), the National Weather Service reported. The normal is 30, according to AccuWeather Inc. in State College, Pennsylvania. The low tomorrow will be 39 degrees, 9 above normal.

(Source: http://www.bloomberg.com/news/2011-02-23/u-s-gas-shipments-drop-near-three-month-low-midwest-falls-7-.html)