Gas End of Day Summary: Henry Hub Ticks Up

Henry Hub front month is heading towards US close trading higher, although it has eased back from its earlier gains. Front month has traded between $2.525/MMBtu and $2.669/MMtu.

• Domestic natural gas demand is today estimated above normal at 97.7bcf/d according to Bloomberg.
• The latest weather forecast shows below normal temperatures spreading across from the west in the coming week but with above normal holding on the East Coast. Heating demand for the week to Jan 6 is forecast to be 31 HDD below the long term normal at 174 according to NOAA .
• US natural gas production dipped in the last week to an average of around 104.6bcf/d according to Bloomberg compared to the average for the whole of December of over 105.1bcf/d.
• Gas supplies to US LNG export terminals are down slightly on the day to 14.84bcf/d according to Bloomberg from the near record level of 15.1bcf/d on Dec 31.
• US LNG exports rose by 12% on the year to 87mn tons in 2023, making the US the largest LNG exporter, followed by Qatar and Australia, ICIS data showed.
• China’s natural gas demand is expected to rise by 6-8% on the year in 2024 according to the Chongqing Petroleum and Gas Exchange, cited by Bloomberg.
• China regained the position as the largest global LNG importer of LNG as imports rose 13% y/y to 72m tonnes in 2023 according to ICIS.
• LNG imports into northwest Europe in December fell below November and last year’s levels, Bloomberg ship tracking and port data showed.
• Overall LNG exports from Russia fell 6% in 2023 to 31m tons amid planned facility repairs over the summer according to LSEG data.