Henry Hub on Track for Weekly Gains

Henry Hub has extended gains during US hours, tracking the global gas complex and putting front month up 0.75% week-on-week. Supply concerns related to maintenance at one of Gorgon LNGs’ trains through till August is supportive.

• US Natgas AUG 24 up 2.9% at 2.33$/mmbtu
• US Natgas JAN 25 up 1.7% at 3.66$/mmbtu
• The EIA weekly gas inventories for the week ending July 5 showed a higher-than-expected injection of 65bcf, compared to the seasonal norm of 57bcf. Total stocks stand at 3,199bcf compared to the previous five-year average of 2,695bcf.
• LNG export flows to liquefaction terminals are lower again today at 11.13 bcf/d, compared to a seven-day average of 11.48 bcf/d
• However, Freeport gas flows are rising as it aims to return post shutdown for Beryl, but the restart has been more laboured than anticipated. Nominations to Freeport crept up to ~7% of normal operating levels, BNEF said.
• Lower 48 natural gas production was 101.2 bcf/d yesterday, compared to the seven-day average of 102.1 bcf/d.
• The 6–14-day weather forecast shows cooling temperatures, with above-normal pockets abating in the central US and some below-normal temperatures in the mid-west, according to the NOAA.
• Domestic natural gas demand is 78.51 bcf/d today according to Bloomberg, compared to 80.78 bcf/d yesterday and the five-year average of 73.13 bcf/d.
• Export flows to Mexico have risen to 6.92bcf/d according to Bloomberg, slightly above yesterday’s 6.85 bcf/d and the highest since mid-June.