Strong cooling demand and pipeline operational constraints drove dramatic regional price spikes in the physical natural gas market on Thursday.

At a Glance:

• Transco, SONAT, TGP declare OFOs
• LNG feedgas rebounding off summer lows
• South, East regions sizzling

The sharp moves in the cash market came as operators on several major pipelines issued operational flow orders (OFOs), including Transco, SONAT and Tennessee Gas Pipeline (TGP), reflecting constraints on the system amid robust demand. OFOs are notices pipeline operators use when linepack — the volume of gas needed to keep the system pressurized — gets out of balance; shippers that deviate from scheduled flows can face penalties, and such orders often signal that a system is running near its limits. At the same time, feedgas deliveries to LNG export facilities were rebounding off their summer lows, adding to pull on the grid. Much of the South and East was experiencing sizzling temperatures, boosting cooling-related demand.

The spot price spikes come against a broader backdrop of shrinking storage surpluses and year/year storage deficits in multiple regions, which have kept attention on how much gas can be put away ahead of the coming heating season. Earlier in the week, the US Energy Information Administration reported a 30 Bcf injection for the week ended Aug. 28, in line with expectations. The cash market also had a weather-driven tailwind from residual heat in the wake of the remnants of Tropical Storm Edouard, which faded over East Texas earlier in the week after prompting steep Gulf Coast losses Tuesday. Separately, escalating US-Iran hostilities have raised concerns about energy shipments through the Strait of Hormuz, adding uncertainty over global LNG supply and potential demand for US exports heading into winter.

Related NGI coverage:

• Shrinking Surpluses, Steamy Forecasts Fail to Rally Natural Gas Futures — Despite unseasonably hot near-term forecasts and formidable year/year storage deficits in multiple regions, natural gas futures lost ground on Thursday. (Daily Gas Price Index, Markets Report, September 3, 2026)

• In-Line Storage Injection Sends Natural Gas Futures Adrift — Utilities and other operators collectively injected 30 Bcf of natural gas into storage during the week ended Aug. 28, the US Energy Information Administration (EIA) reported on Thursday. The result met expectations and, at least initially, deflated natural gas futures. (September 3, 2026)

• Natural Gas Futures Hover Near $3 as Market Braces for EIA Storage Print — Buyers stepped up again early Thursday as the futures market anticipated a bullish update on natural gas stored underground for the coming winter. (September 3, 2026)

• Cash Natural Gas Prices Mixed as Edouard Fades Over East Texas — Physical natural gas prices mostly rose Wednesday as building heat supported demand from the Mississippi Valley into the Ohio Valley, while Gulf Coast hubs recovered some of Tuesday's steep losses. (September 2, 2026)

• Natural Gas Futures Advance Ahead of Expected Lean Storage Build — Natural gas futures pushed higher Wednesday as increasingly bullish September heat forecasts gave traders another reason to test the $3 mark, while renewed US-Iran fighting added a fresh jolt from overseas. (September 2, 2026)

• Inflamed US-Iran Tensions Imperil Hormuz Shipping, Stoke LNG Supply Fears — Escalating US-Iran hostilities this week raised fresh concerns over prolonged disruptions to energy shipments through the Strait of Hormuz. The flare-up added to already simmering concerns about global LNG supply and could add demand for American exports — and impact pricing — should the war drag into the winter months. (International, September 2, 2026)

The full Daily Gas Price Index report, including hub-level spot pricing details, is available to NGI subscribers at naturalgasintel.com.