Henry Hub Recovers on Sabine Pass Flows and Declining Storage Surplus

US Henry Hub is regaining some of the losses seen yesterday with a recovery in feedgas flows to Sabine Pass LNG and with another decline in the storage surplus. Feedgas flows to US LNG export terminals are however still below recent levels due to Cove Point maintenance.

• US Natgas OCT 23 up 1.1% at 2.64$/mmbtu
• US Natgas MAR 24 up 0.2% at 3.2$/mmbtu
• US Natgas SEP 24 down -0.1% at 3.25$/mmbtu
• Cove Point LNG has halted for four weeks to undergo seasonal maintenance. Feedgas intake into Cheniere’s Sabine Pass LNG terminal dropped yesterday to 3.7bcf/d but has since recovered today back near to normal at 4.3bcf/d according to Bloomberg. Total natural gas delivery flows to US LNG export terminals are today estimated down at 12.1bcf/d.
• The latest EIA weekly gas inventories for the week ending 15 Sep showed a build in line with expectation at +64bcf compared to the five-year average for this time of year of +89bcf. The surplus in total US inventories continues to trend slightly lower but stocks are still above the five year average at 3,269bcf compared to the average of 3,064bcf. The five year average end of summer peak is around 3,630bcf in early November.
• US domestic natural gas production was yesterday steady at 101.6bcf/d and in line with the average seen so far in August.

• Domestic natural gas consumption is today estimated near normal at 65.4bcf/d with a mixed US weather forecast. The forecast is unchanged from yesterday with below normal temperatures on the West Coast and above in central areas.
• Export flows to Mexico are today estimated at 7.1bcf/d.