EIA: Storm Fern Could Boost NatGas Demand, Price Concerns


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Concerns over U.S. heating demand and prices could get 
more pronounced with this weekend's Storm Fern, which has already driven spot 
natural gas to above $8 mmBtu, the Energy Information Administration warned 
Friday (1/23).

   "When cold weather hits, especially over a large swath of the country, we 
often see increased energy demand for space heating, in turn raising demand for 
both electricity and natural gas," the EIA said.

   The agency noted that the daily spot price for natural gas reached nearly 
$8.15 mmBtu on Thursday (1/22). Spot, or cash, gas prices reached a high of 
$10.07 mmBtu in mid-January 2025.

   In Friday's trade, the front-month gas futures contract on the Henry Hub 
peaked at $ 5.396 mmBtu, up from last year's close of $3.686.

   Analysts caution that Winter Storm Fern could cripple energy infrastructure 
from the Plains to the Northeast by triggering gas freeze-offs and distribution 
failures.

   PJM Interconnection anticipates an unprecedented winter peak of 145,700 MW 
as the severe weather system pummels the Mid-Atlantic region through the 
weekend.

    




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