Henry Hub Holding Losses

Henry Hub futures have remained lower during US hours as a small build in US gas storage levels and seasonally high stocks keep pressure on prices. Lower feedgas flows to LNG facilities are adding further downside.

• US Natgas APR 24 down -1.1% at 1.68$/mmbtu
• The EIA weekly gas inventories for the week ending Mar. 15 showed a build of 7bcf compared to the expectation for a build of 6bcf according to a Bloomberg survey and the seasonal normal draw of -59.5bcf.
• The build helps maintain a strong end of winter season US inventory surplus. Total stocks are at 2,332bcf compared to the previous five-year average of 1,650bcf.
• Total feedgas flows to US LNG export terminals is today estimated down again to the lowest since Mar. 5 at 12.56bcf/d according to Bloomberg. A drop in feedgas to Corpus Christi LNG by 0.7bcf/d on the day is adding to the ongoing curtailed flows to the Freeport terminal.
• Lower 48 natural gas demand is above the previous seasonal five-year range up at 88.2bcf/d today according to Bloomberg.
• US domestic natural gas production yesterday rose back up to 101.3bcf/d according to Bloomberg after falling to 99.2bcf/d on Mar. 19. Production this time last year averaged around 100bcf/d.