https://www.eia.gov/todayinenergy/detail.php?id=68124

Low-cost natural gas supplies from the Appalachian region and Canada, coupled with reduced regional consumption, have driven down natural gas prices at a major New England pricing hub, according to data from Natural Gas Intelligence. From April to July 2026, Algonquin Citygate prices averaged 43 cents per million British thermal units (MMBtu) below the Henry Hub benchmark, marking the second-largest discount since records began in 1999.

Typically, Algonquin prices traded at a premium to Henry Hub during winter months due to increased natural gas demand for home heating. However, as summer approached, and home heating demand decreased while solar generation rose, Algonquin prices often traded at a discount to Henry Hub. In 2025, Appalachia supplied 31% of U.S. marketed natural gas production, the highest among all regions.

During April to July 2026, the Appalachia Regional average hub price was 77 cents/MMBtu lower than Henry Hub, the widest discount ever observed. New England benefits from pipeline connections to Appalachia, providing access to this low-priced natural gas. Additionally, the region is experiencing a record-high volume of natural gas imports from Canada, averaging 0.4 billion cubic feet per day (Bcf/d) from April to July 2026, more than double the volume in the same period of 2025.

This increase in supply coincided with lower natural gas demand in New England, with total consumption decreasing by 5% compared to the same period in 2025. Electricity generation, a major consumer of natural gas, saw a 1.1 billion kilowatthour (BkWh) (6%) reduction in New England between April and July 2026, compared to the same period in 2025.

Meanwhile, wind generation increased by 0.7 BkWh (59%) and utility-scale solar generation rose by 0.2 BkWh (29%).