Henry Hub Finding Support

Near term US Henry Hub is finding some support today, reversing the losses seen yesterday. Higher lower 48 gas demand is countering falling feedgas flows to LNG terminals. Front month has traded between $2.681/MMBtu and $2.784/MMBtu during the day.

• US Natgas JAN 24 up 1.4% at 2.73$/mmbtu
• US Natgas JUN 24 up 1.2% at 2.76$/mmbtu
• Feedgas flows to US LNG export terminals are today down slightly to 14.14bcf/d according to Bloomberg driven by a 0.7bcf/d drop in supply to Sabine Pass LNG. Sabine Pass supplies have been volatile recently having seen similar declines twice last week.
• US lower 48 natural gas demand is higher on the day to 91.1bcf/d according to Bloomberg but in line with normal and following the seasonal trend higher. Temperatures are generally forecast to hold above normal in the coming two weeks although above normal temperatures in the East and West Coast in the 6–10-day period could cool back closer to normal later in the forecast.
• Domestic natural gas production held steady just below record levels yesterday at just over 106bcf/d according to Bloomberg compared to 100.4bcf/d in the first week of December last year.
• Export flows to Mexico are at 6.29bcf/d according to Bloomberg.