Monthly average natural gas spot prices in the Northwestern U.S. have hit record lows this year, driven by increased Canadian gas supply and muted regional demand for natural gas-fired power, the Energy Information Administration said on Thursday.
Daily spot prices at the Northwest Sumas hub averaged $1.59 per million British thermal units (MMBtu) through August, 17% lower than the same period in 2024, and dropped to an all-time monthly low of $0.56/MBtu in June.
The EIA said Canadian gas production climbed to record highs in 2025, and cross-border flows into the Pacific Northwest averaged 4.5 Bcf/d in February this year, the highest since 2012.
“A persistent positive price spread between Northwest Sumas and upstream Western Canadian hubs has continued to incentivize Canadian imports into the Pacific Northwest,” the EIA noted.
Meanwhile, the rise in renewable energy – with solar output surging 21% since 2024 – and mild weather subdued demand for gas-fired power.
(Reporting by Sarah Qureshi in Bengaluru; Editing by Will Dunham)