Henry Hub Extends Pull Back Amid Uncertain Feedgas to LNG Terminals

Henry Hub edges lower with high end of winter gas storage levels and near normal demand set against lower US production than in February while uncertainty surrounds the curtailed LNG exports.

• US Natgas APR 24 down -1.7% at 1.78$/mmbtu
• US Natgas SEP 24 down -1.2% at 2.49$/mmbtu
• US Natgas MAR 25 down -1.2% at 3.2$/mmbtu
• The expected return of train 3 at the Freeport export terminal from outage in the middle of March could help boost US exports although feedgas supplies to the terminal have seen additional declines at times in the last week. Flows were near to just one third of total capacity over the weekend at around 0.796bcf/d. Total feedgas flows to US LNG export terminals are today estimated at about 13.48bcf/d according to Bloomberg.
• US domestic natural gas production edged slightly higher over the weekend to just over 101bcf/d according to Bloomberg compared to a low of 99.9bcf/d on March 6. Production this time last year was around 100bcf/d.
• Lower 48 natural gas demand is in line with the seasonal five year average at 80.5bcf/d today. The NOAA two week forecast has turned cooler compared to the view last week with below normal temperatures now expected in central areas in the 6-10 day period spreading towards the east coast in the 8-14 day period. The west coast remains above normal throughout.
• Export flows to Mexico are today at 6.4bcf/d according to Bloomberg.