Natural Gas End of Day Summary: Henry Hub Climbs

Henry Hub is rising on the day, rebounding from the 9-month low of just below 2.05$/mmbtu Jan. 29. A slightly mixed weather picture across the US is weighed against the return of strong production, above normal storage levels, and curtailed LNG exports.

• US Natgas MAR 24 up 0.8% at 2.07$/mmbtu
• Lower 48 natural gas demand is up slightly on the day to 95.4bcf/d according to Bloomberg but is still below the previous five-year average levels of as much as 109bcf/d at this time of year.
• The US weather forecast is generally holding above normal but colder weather is expected in the East and West Coast regions in the 6–10-day period after the warm weather this week.
• US domestic gas production was yesterday back at levels from early January estimated at 105.3bcf/d according to Bloomberg.
• Feedgas supply to US LNG export terminals are today at 14.1bcf/d with flows to Freeport still about 0.6bcf/d below levels seen in early January amid the outage to one of three liquefaction units.
• European gas market will have weaker price upside in 2024 than previous years with bearish fundamentals according to the ICIS 2024 outlook for European gas, power and carbon markets.
• Global weekly LNG imports edged up by 2% to 8.7mn tons during 22-28 January, according to BNEF.
• North African LNG exports – from Algeria and Egypt – stood at 1.18mn tons on 1-30 January, down from 1.34mn tons in December, according to Platts.