NATGAS: Henry Hub Front Month Rallies to Highest Since Aug 20

Henry Hub saw a brief drop yesterday following the bearish wider energy complex but has since rallied to the highest since Aug 20.  Support comes from steady LNG and Mexico export flows while production has dipped this week below levels seen in August.

• The US DoE has authorised Mexico’s 1.4m mtpa Altamira LNG export terminal to load cargoes produced from US gas to countries without free trade agreements with the US. The permit is the first issued to an LNG export terminal since the Biden administration announced a pause in January.
• US LNG export terminal feedgas flows are estimated at 12.95bcf/d today, according to Bloomberg in line with supply seen this time last year.
• Export flows to Mexico are today estimated at 7.2bcf/d, according to Bloomberg.
• US domestic natural gas production held steady at 101.6bcf/d yesterday, according to Bloomberg, compared to an average of 102.5bcf/d in August.
• Domestic natural gas demand is holding just above the previous seasonal five year average at 71.0bcf/d today, according to Bloomberg. The lower 48 temperature forecast shows above normal expected in western and central areas in the coming two weeks while the forecast for below normal temperatures in the east has shifted slightly closer to normal.
• Nymex Henry Hub daily aggregate traded futures volume was up to 492k on Sep 3 after the drop due to the US holiday at the start of the week.
  • US Natgas OCT 24 up 1% at 2.23$/mmbtu
  • US Natgas MAR 25 up 0.6% at 2.93$/mmbtu
  • US Natgas SEP 25 down 0.3% at 3.15$/mmbtu