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Henry Hub Holds Gains Amid Global LNG Supply Risks

NATGAS

US Natgas holds steady after gains seen yesterday amid the surge in global gas prices due to the global LNG supply risks from potential strikes at Australia LNG facilities. Front month Henry Hub traded at the highest since early March to a high of just over 3.0$/mmbtu.

    • US Natgas SEP 23 down -0.2% at 2.95$/mmbtu
  • Chevron and Woodside Energy are holding talks with unions to avert strike action at its LNG facilities that equates to around 10-11% of global supplies according to the firms and analyst notes. A final decision on the strikes will depend on ongoing meetings for improved pay.
  • Lower 48 dry natural gas consumption is today relatively unchanged from yesterday at 74.67bcf/d compared to the five year average of around 72bcf/d at this time of year. Cooling demand remains strong with temperatures holding above normal throughout the two week outlook for most of the country, especially in southern areas.
  • LNG export terminal feedgas flows are back up to 12.6bcf/d today according to Bloomberg data after a dip earlier in the week with lower supplies to Corpus Christi LNG.
  • US production is today estimated at 100.65bcf/d compared to average flows of 101.7bcf/d so far in August according to Bloomberg.
  • Export flows to Mexico remain above normal at 7.06bcf/d today.

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