End of Day Gas Summary

The Henry Hub May24 contract showed weakness Wednesday driven by curtailed LNG feedgas flows and high end of winter storage flows.

• US Natgas MAY 24 down -3.9% at 1.72$/mmbtu
• Freeport’s Train 3 has resumed production but Train 1 and 2 are currently offline for maintenance and inspection. The facility is expected to run all three trains from early May, the firm’s CEO said earlier this month.
• Planned inspections at US Freeport LNG Train 1, 2 may cut Osaka Gas' procurement its president said according to Platts reports.
• US natural gas demand averaged 83.563bcf/d in the week to 27 March, down from 77.231bcf/d the week before.The latest 6-10 day NOAA weather forecast suggests temperatures below to near normal for most of the US, with above seasonal temperature forecasts for Florida and parts of northwestern US.
• Feedgas flow to US LNG export terminals is today estimated down at 12.27bcf/d according to Bloomberg compared to an average of 13.2bcf/d over the previous month. Freeport LNG supply remains down at just 0.79bcf/d while Calcasieu Pass and Corpus Christi flows are also below normal.
• Global weekly LNG imports edged up by 1% to 7.5mn tons during 18-24 March, with China, South Korea and NW Europe ramping up imports according to BNEF.
• Global LNG prices have eased back as spot buying interest has slightly dried up at the end of the winter season. US LNG exports favour Asia over Europe through September according to BNEF.