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Natural Gas Prices at New England Hub Fall Below Henry Hub, EIA Says

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Low-cost Appalachian and Canadian natural gas supplies, coupled with lower-than-usual regional consumption, have pushed natural gas prices at a major New England pricing hub below the Henry Hub price in recent months, the US Energy Information Administration said on Wednesday.

Natural gas prices at Algonquin Citygate averaged 43 cents per million British thermal units less than Henry Hub from April through July 2026, the second-largest discount for the period, according to Natural Gas Intelligence data going back to 1999, the EIA said.

In recent years, Algonquin Citygate typically traded at a premium to Henry Hub during winter as natural gas demand increased for home heating.

In spring and summer, lower home heating demand and increased solar generation reduced natural gas demand, and Algonquin often traded at a discount to Henry Hub.

Algonquin prices have remained relatively low in springtime in part because of access to low-cost natural gas from Appalachia. In 2025, Appalachia accounted for 31% of US marketed natural gas production, more than any other region.

From April through July 2026, the Appalachia Regional average hub price was $0.77/MMBtu below Henry Hub, the second-widest discount ever reported.

Pipeline connections from Appalachia into the Northeast give New England access to relatively low-priced gas.

New England is also receiving a record-high volume of natural gas imports from Canada this year. S&P Global Energy data show monthly net flows from Canada into New England averaged a record 0.4 billion cubic feet per day from April through July, more than 2.5 times the volume during the same period in 2025.

The increase in regional supply coincided with lower natural gas demand. Total natural gas consumption from April through July 2026 was 5% lower than during the same period in 2025, EIA said, citing information from S&P Global Energy.

Natural gas-fired electricity generation fell 1.1 billion kilowatt-hours, or 6%, while wind generation rose 0.7 billion kWh, or 59%, and utility-scale solar generation increased 29%, or 0.2 billion kWh, EIA said.

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