Natural gas basis prices for August skyrocketed across the Southeast during the trading period ending July 27 as searing heat ratcheted up cooling demand, NGI’s Forward Look data showed.

forward basis curves graph

The massive premiums occurred on top of surging fixed forward prices across North America. Henry Hub August fixed prices jumped 76.0 cents through the period to around $8.690/MMBtu on Wednesday, according to Forward Look. The U.S. benchmark’s September contract moved up similarly to around $8.555, while the balance of summer (August-October) soared to about $8.590. The winter strip (November-March) also picked up an impressive 67.0 cents to hit about $8.250.

Against that backdrop, however, basis action was mostly subdued as regional markets largely tracked in line with Henry Hub. The glaring...