End of Day Natural Gas Summary: Henry Hub Rebounds

US Henry Hub is regaining some of the losses seen yesterday with a recovery in feedgas flows to Sabine Pass LNG, a drop in the storage surplus, and declining gas rig counts. Despite a mid-week rally, Henry Hub prices are largely rangebound compared to the same time Sep. 15.

• US Natgas OCT 23 up 1.4% at 2.65$/mmbtu
• US Natgas MAR 24 up 0.7% at 3.22$/mmbtu
• The US gas rig count was down 3 to 118 rigs, according to Baker Hughes data.
• Outages at US LNG export terminals LNG are adding to supply risks. Cove Point LNG has halted for four weeks to undergo seasonal maintenance. Feedgas intake into Cheniere’s Sabine Pass LNG terminal dropped yesterday to 3.6bcf/d but has since recovered slightly today back towards normal at 4.3bcf/d.
• Chevron and the unions reached an agreement to end strikes at the Wheatstone and Gorgon LNG facilities in Australia.
• Russia’s gas production could fall 5% on the year to 642 bcm in 2023, according to a forecast by Russia’s Economic Development Ministry.
• European natural gas storage is up to 94.40% full on 20 Sep amid slow injection rates according to GIE data and compared to the five year average of 85.5%.
• Turkey and Israel will soon begin taking joint steps in drilling projects, President Tayyip Erdogan said Thursday adding the two nations would operate energy networks to Europe through Turkey.
• Japan’s city gas utilities could sell part of their stockpiles to power utilities in the event of fuel shortages. LNG storage at major Japanese power utilities continued its downward trend this week to just 1.62m tons on 17 Sep and 21.4% below the five-year average.
• The CEO of Ukraine’s gas TSO, Dmytro Lyppa, says the war in Ukraine has failed to deter European gas traders from using the country’s gas storage and transportation infrastructure according to Montel.