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Front Month Henry Hub Falls With Drop in LNG Feedgas Flows

NATGAS

Front month US Henry Hub is easing back from a high of 2.86$/mmbtu earlier today with a drop in feedgas to US LNG export terminals and despite the strength in European and Asian gas markets amid concern for Australian LNG output.

    • US Natgas SEP 23 down -0.8% at 2.77$/mmbtu
    • US Natgas FEB 24 up 0.4% at 3.96$/mmbtu
    • US Natgas AUG 24 up 0.4% at 3.47$/mmbtu
  • Gas flows to LNG export terminals are today down to 11.8bcf/d according to Bloomberg data compared to an average of 12.45bcf/d seen over the previous month. The decline is mainly driven by a 0.5bcf/d fall in supply to Corpus Christi LNG.
  • Domestic gas consumption is still holding above normal for the time of year at 76.4bcf/d today compared to the five year average around 70.5bcf/d. The prevailing hot weather this month will keep power grids under pressure and is likely to continue to support gas demand for cooling. The latest NOAA forecast shows above normal temperatures in the east spreading across the whole country in the 8-14 day period.
  • US lower 48 dry gas production was at 101.7bcf/d yesterday and in line with output seen over the previous week. The latest EIA drilling report shows shale gas output falling in September to 98.262bcf/d but with an upward revision to August.
  • Export flows to Mexico are well above normal at 7.1bcf/d today.

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