Spot natural gas prices around New York and New England rocketed up more than $2 at some points, ignited by near triple-digit heat in the demand area.
Prices for Transcontinental Gas Pipe Line zone 6-New York shot up about $2.30 to top $9/MMBtu in early trading on the IntercontinentalExchange, continuing a sharp rise on a recent heat wave that is expected to push the mercury up to near 100 degrees in New York Thursday.
The fevered action pushed several deals over the $10/MMBtu mark on the ICE screen, the highest for the city-gate since February.
Iroquois Gas Transmission zone 2 was nearly as strong, tacking on more than $2.20/MMBtu on the ICE screen to average near $8.45/MMBtu.
With temperatures in Boston also expected to reach far above seasonal averages into the mid-90s, New England cash similarly took on tremendous gains. Cash for Tennessee Gas Pipeline zone 6 added nearly $1.95 to come in near the $8/MMBtu mark on ICE.
Maritimes & Northeast Pipeline operator Spectra Energy said in a website posting that an imbalance warning will go into effect Thursday because of the forecast for high demand, requiring deliveries to be at or less than scheduled quantities.
