Natural Gas Prices
The price of natural gas at the U.S. Henry Hub slipped slightly over the week, falling from $3.00/Dth to $2.89/Dth. Futures also dropped with prompt month (October 2025), 12-month strip, and seasonal strip averages all posting week-over-week losses. Likewise, nearly all spot prices declined.
Natural Gas Supply and Demand Fundamentals
- Storage: Natural gas storage totaled 3,343 Bcf as of Friday, September 5th, 2025, a net increase of 71 Bcf from the prior week. Additionally, stocks were 38 Bcf less than last year and 188 Bcf above the five-year average of 3,155 Bcf. If current rates continue (April-October), by end-October storage will be 3,941 Bcf, 188 Bcf higher than the five-year average for end-October.
- Supply: Total supply fell by just 0.1/Bcf/d. Production dipped slightly over the prior week while net imports from Canada increased. Year-over-year, supply is up 4.5 Bcf/d. Natural gas rigs declined by one from the prior week, sitting at 118 rigs, marking an addition of 24 rigs over the same week last year.
- Demand: Overall consumption did not change much, but power generation demand declined 1.7 Bcf/d week-over-week as the result of cooler weather whereas residential/commercial demand rose 1.4 Bcf/d with increased heating load. Industrial demand rose slightly (0.2 Bcf/d). Exports to Mexico and LNG exports remained steady. Shipping data show that 34 LNG vessels departed U.S. ports between September 4-10, with a combined capacity of 129 Bcf.
Natural Gas News
Blackstone Buys $1B Pennsylvania Natural Gas Plant
Blackstone has acquired the Hill Top Energy Center, a 620-MW natural gas facility in western Pennsylvania for nearly $1 billion. This acquisition is part of Blackstone’s broader strategy to invest over $25 billion in Pennsylvania’s energy and digital infrastructure. The purchase price reflects the growing value of modern, efficient natural gas assets, highlighting their role in meeting increasing electricity demand from data centers and AI. This move points to the importance of natural gas in supporting high-demand electricity users and the evolving energy landscape.
While Blackstone’s Hill Top acquisition is one of many such purchases driven by the growing demand for reliable natural gas to power data centers and AI, current natural gas news shows the challenges of sustaining production, even within the United States. The International Energy Agency reports that output from existing oil and gas fields is declining faster than expected, stressing the necessity for continued investment.
IEA Warns of Accelerating Decline in Oil and Gas Output
The International Energy Agency (IEA) reports that the global average annual decline rate for oil and gas fields has accelerated significantly, largely due to increased reliance on shale and deep offshore resources. Without continued investment, global oil production could fall by 8% per year, and natural gas production by 9%, equivalent to the combined annual output of Brazil and Norway. The IEA emphasizes that nearly 90% of upstream investment is dedicated to offsetting losses from existing fields, magnifying the challenge of maintaining production levels and the need for sustained investment to ensure energy security and market stability.
Connecting the Dots
Both developments make clear the critical role of natural gas in the current energy landscape. While significant investment in natural gas plants throughout the first half of 2025 evidences the growing demand for reliable energy sources, the IEA’s report amplifies the challenges of maintaining oil and gas production levels without substantial continued investment. Viewed comprehensively, both stories illustrate the complexities of balancing energy demand with the realities of production decline and the need for strategic investment.
Natural Gas Prices as of September 12th, 2025
October settled Friday, September 12th at $2.941/Dth up less than a penny from Thursday’s close at $2.934/Dth but down 10.7 cents from the prior week.
Settled Friday, September 12th at $3.639/Dth, down 3.9 cents from the prior week.
The winter strip (NOV25-MAR26) settled Friday, September 12th at $3.724/Dth, down 6.1 cents from the prior week while the summer strip (APR26-OCT26) settled at $3.714/Dth, down less than a penny week-over-week.
CY26 settled Friday at $3.848/Dth, down 1.4 cents from the prior week.
CY27 settled Friday at $3.883/Dth up 1.1 cents from the prior week.
CY28 settled Friday at $3.736/Dth, down 1.8 cents from the prior week.