Henry Hub Extends Losses

US Henry Hub front month extends losses amid a drop in feedgas intake at the USA’s largest LNG terminal and a build in US natural gas storage inventories.

• US Natgas OCT 23 down -2.8% at 2.66$/mmbtu
• US Natgas MAR 24 down -0.5% at 3.21$/mmbtu
• US Natgas SEP 24 down -0.3% at 3.25$/mmbtu
• The latest EIA weekly gas inventories for the week ending 15 Sep showed a build of +64bcf compared to a Bloomberg survey expecting a +64bcf build and the five-year average for this time of year of +89bcf.
• The surplus in total US inventories continues to trend slightly lower but stocks are still above the five year average at 3,269bcf compared to the average of 3,064bcf.
• Feedgas intake into Cheniere’s Sabine Pass LNG terminal in Louisiana dropped to its lowest level since Aug. 21, according to Bloomberg.
• Feedgas currently stands at 3.53 bcf/d, down 0.8 bcf/d compared to levels Sep. 20. Levels are down 18% from the recent five-day average of 4.31.
• US domestic natural gas production was yesterday steady at 101.2bcf/d after the dip to 100.5bcf/d last week.
• Domestic natural gas consumption is today estimated in line with the seasonal normal at 65.6bcf/d. The latest two-week NOAA forecast is relatively unchanged from yesterday with below normal on the West Coast and above normal elsewhere, especially in central areas.
• Export flows to Mexico are today estimated at 7.1bcf/d.