Henry Hub Holding Gains

US Henry Hub front month is holding most of its gains during the day, reversing some of the declines during last week. Nonetheless, cooling weather forecasts and strong overseas demand for LNG remain supportive. The daily high for Henry Hub is currently $3.215/MMBtu. A a power draw at Freeport LNG which may have affected the facility has done little to Henry Hub’s strength in the day, likely because the event has not impacted feedgas flows thus far.

• US Natgas DEC 23 up 4.8% at 3.18$/mmbtu
• US Natgas MAY 24 up 1.8% at 3.07$/mmbtu
• US Natgas NOV 24 up 0.9% at 3.77$/mmbtu
• US Natgas 1-2 spread up 0$/mmbtu at -0.2$/mmbtu
• Feedgas flows to US LNG export terminals have dropped from their recent near record levels to 14.39 bcf/d today according to Bloomberg.
• The power draw at the Freeport LNG terminal decreased dramatically from 8:00ET (13:00GMT) on Monday, indicating the whole facility may be offline according to a Genscape report.
• Flows to the Freeport LNG terminal, however, seem unaffected on Monday and were at 2.13bcf/d up from the 30-day moving
• Domestic natural gas demand has dipped counter to the seasonal rising trend to fall below the five year average to 81.0bcf/d today according to Bloomberg. The current weather forecast shows a mixed picture with above normal temperatures across most of the country later this week giving way to below normal coming in from the west for the 8-14 day period according to the NOAA forecast.
• Domestic natural gas production remains strong up at 105.2bcf/d today according to Bloomberg and roughly in line with the average so far in November.
• Export flows to Mexico have fallen over the weekend to 5.0bcf/d today compared to a high of 6.6bcf/d last week.