Henry Hub Dips Amid Lower LNG Exports Ahead of EIA Data

US front month Henry Hub is edging lower amid reduced LNG exports to extend the pull back seen yesterday ahead of the updated EIA weekly natural gas storage inventories.

• US Natgas AUG 23 down -1.1% at 2.64$/mmbtu
• The latest EIA weekly gas inventories for the week ending 21 Jul will be released this afternoon at 15:30BST. The expectation is for a build of +15bcf compared to a build of +41bcf last week and the seasonal normal of +32bcf.
• Delivery flows to the US LNG export terminals are still low this week down at 12.1bcf/d today according to Bloomberg with curtailed flows to Cove Point and a drop in supply to Sabine Pass today against a recover to Freeport. Feedgas flows to the one-train Cove Point LNG export terminal have reduced after an explosion July 25 shut down part of the Columbia gas transmission pipeline.
• Domestic natural gas consumption is down from earlier this week to 76.3bcf/d but still above five year average levels. The US weather forecast has cooled slightly from yesterday but with much of the country still showing above normal throughout the next two weeks although the north east is still showing below normal.
• US production is back up to 100.9bcf/d and in line with the July average so far after dipping slightly lower on 25 July.
• Export flows to Mexico remain high up at 6.9bcf/d today.