By Eileen Houlihan
NEW YORK Jan 22 Cold weather in the U.S.
Northeast pushed regional New York natural gas prices to their
highest level in five years on Tuesday.
Regional New York cash gas prices for Wednesday delivery
averaged just over $23 per million British thermal units, the
highest average price for New York tracked by Reuters since a
peak at $38 in early January 2008.
Gas for Wednesday delivery on the Transco pipeline at the
New York citygate traded as high as $29, according to
ICE data, and as low as $9.75 early in the day, according to
Other New York prices traded in the $9 to $21 range, while
other Northeast prices traded at $17 to $21.
Those prices compare with a two-month high average of $3.63
at the nation's benchmark supply point, Henry Hub in
"The weather continues to dominate the short-term direction
of natural gas prices. The current cold conditions are expected
to last at least through the end of this week, especially in the
high-demand Northeast area, obviously a bullish scenario for the
very short term," said Energy Management Institute's Dominick
The Transco pipeline, owned by Williams Cos, is a
10,000-mile system with the capacity to carry 9.6 billion cubic
feet of supply per day from South Texas to New York City. It is
a major provider of natural gas to the U.S. Northeast and
In the latest informational posting on Transco, Williams
said on Friday that temperatures over much of its market area
would be below normal for most of this week.
Shippers on the Transco system were encouraged to balance
their supply and demand requirements on a daily basis.
The Weather Channel's weather.com said temperatures in New
York would reach a high of only 23 degrees Fahrenheit on
Tuesday, dipping to the low-teens overnight, with a similar
forecast for much of the week.