Natural Gas Market Overview
As of August 29, 2025, the natural gas market has seen several significant developments. The close price of natural gas on the New York Mercantile Exchange was recorded at $2.944 on August 27, 2025. Over the past year, prices have fluctuated between a high of $4.901 on March 9, 2025, and a low of $2.075 on September 2, 2024.
Bulgaria Approves Lower Natural Gas Price
On August 29, 2025, Bulgaria announced a reduction in natural gas prices for September, marking a 2.5% decrease. This decision reflects ongoing efforts to manage energy costs amid fluctuating global prices.
China Sets New Production Record
CNOOC, a major player in China’s energy sector, has set a new production record by exceeding 100 million cubic meters of natural gas daily. This milestone underscores China’s commitment to expanding its clean energy infrastructure and reducing reliance on coal.
Exxon Mobil’s Long-Term Outlook
Exxon Mobil projects a more than 20% increase in global natural gas demand by 2050. This surge is expected as natural gas replaces coal in industrial applications and meets rising electricity needs in developing countries.
U.S. Natural Gas Market Dynamics
In the United States, natural gas prices have extended gains as storage surpluses shrink. The U.S. Energy Information Administration (EIA) reported a natural gas storage change of +18 billion cubic feet for the week ending August 22, 2025, below the forecasted 27 billion cubic feet. This discrepancy has contributed to the upward pressure on prices.
Investment Activity
Investors have shown increased interest in natural gas, with a notable rise in call options trading for the United States Natural Gas Fund (NYSEARCA:UNG). On August 28, 2025, trading volume for call options increased by 15% compared to typical levels.
International Developments
PetroChina has agreed to acquire three natural gas storage facilities from its controlling shareholder in a $5.59 billion deal. This acquisition is part of China’s broader strategy to strengthen its natural gas infrastructure.
Cross-Border Collaboration
Abaxx Technologies Inc. facilitated a delegation from the China City Gas Association to enhance cross-border collaboration in Asia’s natural gas and energy markets. This initiative aims to strengthen regional partnerships and market integration.
These developments highlight the dynamic nature of the global natural gas market, driven by production advancements, strategic investments, and evolving energy policies.