U.S. spot natural gas and power prices soared to multi-year highs in several parts of the country with extreme cold expected to boost gas demand to a daily record high on Tuesday…
U.S. spot natural gas and power prices soared to multi-year highs in several parts of the country with extreme cold expected to boost gas demand to a daily record high on Tuesday.
Extreme weather has created havoc for power and gas markets in recent years as demand has come close to outpacing supply.
In February 2021, a freeze in Texas killed more than 200 people and left millions without power, water and heat for days after extreme cold caused gas supplies to drop by freezing oil and gas infrastructure, known as freeze-offs.
The nation's biggest power grid, PJM Interconnection, which oversees all or parts of 13 states from Illinois to New Jersey, extended its Jan. 20-22 cold weather alert through Jan. 23, and said power demand could hit a new winter peak from Jan. 20-22.
Gas provides about 43% of the nation's power generation and heats about 45% of the country's homes, according to data from the U.S. Energy Information Administration (EIA). The expected jump in demand, coupled with a potential drop in supplies, could drive up power and gas prices next week.
In the spot market, gas prices rose to their highest since January 2024 at several U.S. hubs, including
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