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Hot Weather Supporting US Gas Prices

NATGAS

Texas set a state record for electricity demand on Sunday from air conditioning usage due to the heat. Above normal temperatures in the South are forecast to continue and expected to spread to Central US in the coming week. US Natgas trading up 0.5% on the day at 8.90$/mmbtu.

  • Uncertainties remain regarding the repair work to being done to Freeport LNG export terminal following the fire last week. The initial estimate was for at outage for at least 3 weeks, until the end of the month.
  • The LNG outage could provide an opportunity to fill domestic storage with EIA data last week showing stocks at 1999bcf compared to the 5-year average of 2292bcf.
  • Lower 48 production is showing unchanged at 95.8bcf and demand is high at 68bcf. Net gas flows to LNG export terminals are still missing the 2bcf from flows to Freeport and therefore unchanged at 10.8bcf.

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