Northeast Gas Prices Sink Near $1 Per MMBtu
Appalachian gas producers and Northeast buyers face a regional price gap well below the national benchmark.
Updated on Nov. 6, 2026 in Oil and Gas
Live Poll
Do you expect your home heating or utility bills to rise this winter?
Natural gas spot prices in the Northeast remained near $1 per MMBtu on Thursday, far below the $2.610 per MMBtu Henry Hub national benchmark averaged on Wednesday. For oil and gas operators, the gap signals a regional glut that is squeezing producers in the Appalachian supply basin.
Why it matters
Heating demand in the East is running well behind last year, leaving the region with more gas than it needs. Regional spot prices are being pushed down even as the national benchmark holds well above them.
Spot prices at the Texas Eastern M-2 pricing point, the main hub for gas produced in southwestern Pennsylvania, West Virginia, and Ohio, sit at $1.100, less than half the $2.610 Henry Hub benchmark. Pricing points from Mid-Atlantic to New England cluster between $1.03 and $1.31 per MMBtu.
The players
Henry Hub
The Louisiana natural gas pricing hub that serves as the national benchmark for U.S. gas prices.
Texas Eastern Transmission
A major interstate natural gas pipeline operator whose M-2 and M-3 pricing points anchor gas trading in the Mid-Atlantic and Appalachian region.
Transco Zone 6 NY
A Transcontinental Gas Pipe Line pricing point serving the New York City market.
Algonquin Citygate
A Algonquin Gas Transmission pricing point serving New England gas customers.
The details
Texas Eastern M-2 is the primary pricing point for gas produced in southwestern Pennsylvania, West Virginia, and Ohio, so its price reflects local supply and demand conditions. Because the region has more gas than current heating demand requires, producers selling into the Northeast are receiving prices well below the national benchmark. Canada has also reduced gas shipments into the Northeast, though the source does not quantify how much that affects regional supply.
Timeline
Wednesday: Henry Hub spot price averaged $2.610 per MMBtu.
Thursday: Northeast gas for delivery sold near $1 per MMBtu, and Texas Eastern M-2 rose 5 cents to $1.100.
Recent weeks of mild fall weather preceded the low Northeast prices and weak heating demand.
Market Landscape
Regional pricing points in the Northeast trading far below Henry Hub reflect the pipeline-constrained structure of U.S. gas markets, where local supply can diverge sharply from the national benchmark. The current gap sits well below the Henry Hub price that serves as the reference for most U.S. gas contracts.
Operators buying natural gas in the Northeast may see lower spot costs while the regional surplus persists, but producers selling into the region face weaker netbacks. Procurement teams should watch whether the discount to Henry Hub holds as heating season progresses.
The takeaway
Regional gas prices in the Northeast are running far below the national benchmark, and that gap will shape contract pricing for both buyers and sellers. Operators should track weekly spot prices at Texas Eastern M-2 and Henry Hub as heating demand develops through the winter.
Further reading
For related context, see the Oil and Gas section's coverage of regional gas pricing.
Source note: This article includes information reported by Marcellus Drilling News.
Live Poll
Do you expect your home heating or utility bills to rise this winter?
