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Low LNG Exports and High Storage Still Weigh on Henry Hub

NATGAS

The Henry Hub May24 contract is down slightly to extend a decline from a high of 1.9$/mmbtu on Mar. 19 after the April contract expiry yesterday. The downside pressure is driven by curtailed LNG feedgas flows and high end of winter storage levels.

    • US Natgas MAY 24 down 1.6% at 1.76$/mmbtu
    • US Natgas OCT 24 down 0.8% at 2.5$/mmbtu
    • US Natgas APR 25 down 0.2% at 2.99$/mmbtu
  • Feedgas flow to US LNG export terminals is today estimated down at 12.27bcf/d according to Bloomberg compared to an average of 13.2bcf/d over the previous month. Freeport LNG supply remains down at just 0.79bcf/d while Calcasieu Pass and Corpus Christi flows are also below normal.
  • Lower 48 natural gas demand increase on the day to 85.1bcf/d today according to Bloomberg to remain above the seasonal normal of around 76bcf/d. The latest NOAA 6-14 day forecast shows a cooler outlook with slightly below normal expected across much of the US throughout the period. High wind generation on the ERCOT grid has helped limit power plant demand for fuel.
  • US domestic natural gas production was yesterday at 99.5bcf/d according to Bloomberg compared to an average of 100bcf/d in the previous week and 100.6bcf/d so far in March.
  • Export flows to Mexico are today at 6.4bcf/d according to Bloomberg.

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