NATGAS: Henry Hub Holds Steady After Recovery on Freeport Return

Front month Henry Hub is relatively unchanged on the day after falling to a low of $2.026/mmbtu yesterday before rebounding later in the day amid a return of Freeport LNG and after the updated US storage data release.

• The EIA weekly gas inventories for the week ending Aug. 23 showed an expected injection of 35bcf compared to the seasonal normal injection of about 43bcf. US storage inventories however still hold a strong surplus of 361bcf over five-year average, with total stocks at 3,334bcf.
• US LNG export terminal feedgas flows are estimated at 12.88bcf/d today, according to Bloomberg after falling to a low of 11.0bcf/d earlier this week due to an interruption in gas supply to Freeport’s pre-treatment facility.
• Domestic natural gas demand has dropped further to 75.5bcf/d but remains above seasonal normal, according to Bloomberg. The NOAA 6-10 temperature forecast has shifted further above normal in western area compared to the outlook yesterday although eastern areas have moved slightly further below normal.
• US domestic natural gas production remains strong at 102.9bcf/d today, according to Bloomberg, compared to an average of 102.4bcf/d so far in August.
• Export flows to Mexico are today estimated up to the highest since Aug 9 at 7.4bcf/d, according to Bloomberg.
• Nymex Henry Hub daily aggregate traded futures volume was at 376k on Aug 29.
  • US Natgas OCT 24 down 0.5% at 2.13$/mmbtu
  • US Natgas MAR 25 down 0.5% at 2.9$/mmbtu
  • US Natgas SEP 25 down 0.6% at 3.15$/mmbtu