Natural gas pricing in the Northeastern U.S.

This paper examines natural gas pricing at five citygate locations in the northeastern United States using daily and weekly price series for the years 1994-97. In particular, the effects of the natural gas price at Henry Hub, weather, and the natural gas inventory levels in the region are examined. The results indicate that natural gas spot citygate prices in the Northeastern U.S. are influenced mainly by the Henry Hub spot price and local heating degree-days. The storage-inventory level supplying the Northeast appears to have little influence.Supported by the MIT Center for Energy and Environmental Policy Research and by Statoil