Free Trial

Freeport Restart Steps and Lower Production Support US Natgas

NATGAS

US Natgas is drifting lower but finding some support in recent days after falling about 0.9$/mmbtu from a high of 3.56$/mmbtu last week.

    • US Natgas MAR 23 down -1% at 2.66$/mmbtu
  • The Freeport LNG application to US regulators to add natural gas to one of the three idled units is the latest step towards a restart. Market expectations is for a restart in February, but full operations will take longer with Rystad estimating 60 days from restart to 100% utilization.
  • Lower natural gas production is supporting prices with yesterday estimated down at 97.5bcf/d driven by a decline in output from the Permian region according to Bloomberg.
  • Domestic demand is above normal again today at 109.7bcf/d. The latest NOAA forecast shows above normal temperatures in central and eastern areas in the 6-14 day period and below normal expected in the west.
  • Deliveries to US LNG export terminals are today almost unchanged from yesterday estimated at 12.8bcf/d. Exports to Mexico are today at 6.4bcf/d.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.