NEW YORK, July 15 With a heatwave set to blanket
the U.S. Northeast and much of the eastern United States this
week, natural gas prices in the region rose to their highest
level of the summer on Monday.
In addition, gas pipeline companies warned shippers to
carefully monitor their scheduled supplies in order to maintain
The Weather Channel's weather.com said a heatwave would
build this week in the Northeast, Ohio Valley and Great Lakes as
a large dome of high pressure brings hazy, hot and humid
conditions to the areas.
Temperatures are set to top out in the mid-90s degrees
Fahrenheit (35 degrees Celsius) through Thursday in New York
City, Philadelphia and Washington, D.C., with heat index values
that measure humidity reaching into the upper-90s and low-100s
Boston and other New England cities were seen in the low-90s
F, the forecaster said.
Next-day prices on the Transco gas pipeline at the New York
citygate jumped more than $1 to an early average over
$5 per million British thermal units on the heat, their highest
price and first time over $5 since a late-winter cold spell in
early April. New York prices topped out last winter at $38 in
The last time prices were over $5 in the summer was in 2011,
as new pipeline capacity and production from the nearby
Marcellus Shale has helped to limit what had been historically
volatile prices in New York City.
However, in some periods of high demand during both the
summer and winter, prices still tend to spike.
Gas traders said New England prices traded in the $5.50 area
to over $8 on the Algonquin Gas Transmission system.
Spectra Energy's Algonquin unit said due to the warm
weather and forecasted high demand, it required all shippers and
system operators to carefully review demands for gas and
schedule it consistent with daily needs.
The company said in a website posting that it would utilize
provisions to protect system integrity including the issuance of
OFOs, or operational flow orders, which typically require
shippers to balance daily supply and demand within a specified
The Algonquin system carries gas throughout New England,
while the Williams' owned Transco system carries gas
from the Gulf Coast to markets throughout the Southeast,
mid-Atlantic and Northeast, including New York City.