End of Day Gas Summary: Henry Hub Edges Lower

Front month Henry Hub has reversed earlier gains to trade lower on the day with curtailed LNG feedgas flows and high storage weighing on prices while the US weather forecast averages near normal.

• US Natgas APR 24 down 0.4% at 1.61$/mmbtu
• US Natgas SEP 24 up 0.2% at 2.43$/mmbtu
• Feedgas flow to US LNG export terminals is today estimated at 12.9bcf/d according to Bloomberg compared to an average of 13.1bcf/d over the previous week. Freeport LNG supply remains less than half of capacity while Calcasieu Pass flows have also dropped by around 0.5bcf/d so far this week.
• Lower 48 natural gas demand is holding just above normal at 81.4bcf/d today according to Bloomberg but down from a high of nearly 90bcf/d last week. The latest NOAA 6-14 day forecast shows a mixed picture with warm weather in central areas moving eastwards over the coming weekend. The 6-14 day period shows above normal temperatures in the Lower Atlantic and Gulf Coast regions but with near normal expected in the 8-14 day period.
• US domestic natural gas production was yesterday at 100.2bcf/d according to Bloomberg compared to an average of 100.65bcf/d so far in March.
• The total estimated quantity of LNG on tankers that have not unloaded for at least 20 days declined by 5.3% last week to 3.48mn tons as of 24 March, according to Bloomberg estimates.
• 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.
• The LNG market is set for battle in 2026-30 between Asian LNG demand growth and a large wave of new supply according to Timera Energy.