Moderate Demand and Healthy Supply Keep Downside Pressure on US Natgas

The slide in US Natgas continues with high production volumes, healthy storage levels, limited exports and moderate consumption US Natgas is down on the day but still above the low point reached yesterday of 2.765$/mmbtu.

• US Natgas FEB 23 down -2.1% at 2.88$/mmbtu
• Weather forecasts are mixed with below normal temperatures over much of the country in the 6-10 day period but with a return to normal in the second week of the outlook. Domestic demand is today just above normal at 100.95bcf/d.
• Approval has been given for the Freeport LNG export terminal to take the first steps towards a restart although further approvals will be required before operations can resume. Output is not expected to resume until late February or early March. Deliveries to US LNG terminals are today estimated at 12.8bcf/d.
• EIA weekly gas data yesterday showed total US inventories are near the five year average at 2,729bcf after a smaller than average draw of -91bcf.
• Natural gas production is today estimated at 100.7bcf/d and exports to Mexico are at approximately 6.6bcf/d.