Industrial demand, low storage levels giving Ship Channel unusual strength

摘要

Houston Ship Channel spot gas prices and forward curve values have been exhibiting unusual strength recently due to lower year-over-year storage levels and increased industrial demand for gas in the Lone Star State. According to historical Platts prices, Houston Ship Channel has typically averaged below the benchmark Henry Hub — by as much as 90 cents/MMBtu at times over the last five years. But since the beginning of May, spot prices at Ship Channel have averaged as much as 10 cents above Henry Hub, for an average cash premium month-to-date of 3 cents/MMBtu. In contrast, for the same period a year ago the Ship Channel averaged at a 6-cent discount to Henry Hub, Platts data shows. On Wednesday, Ship Channel held 2-cent premium over Henry Hub.