Natural Gas End of Day Summary: Henry Hub Climbs

Henry Hub front month has climbed strongly today, supported by yesterday’s EIA data showing a below expectation increase in US natural gas storage. This is combined with some discretionary buying as traders take advantage of lower prices.

• US Natgas JUN 24 up 5% at 2.14$/mmbtu
• US Natgas NOV 24 up 1.2% at 3.02$/mmbtu
• US gas rig count Fell by 3 to 102 rigs, down 55 or 35% on the year according to Baker Hughes.
• US LNG export terminal feedgas flows are today estimated down slightly to 12.06bcf/d according to Bloomberg.
• US domestic natural gas production is up slightly from the start of the week at 99.15bcf/d according to Bloomberg but still below the April average of 99.6bcf/d and 102.05bcf/d in March.
• Lower 48 natural gas demand remains steady at 67.6bcf/d compared to the previous five-year seasonal average of around 63.0bcf/d.
• The latest two-week US temperature forecast suggests warmer than normal in the Gulf Coast region.
• The number of US LNG export cargoes fell last week to 21 from 22 the previous week with total vessel capacity at 80bcf: EIA.
• Cheniere Energy remains on track for the first LNG production from its stage 3 expansion at Corpus Christi LNG in Texas, executives said in a Q1 earnings call.
• LNG Canada is likely to reduce natural gas flows to the US with supplies strained for multiple years: Reuters.
• Chevron is working to resume full production at Gorgon LNG after a mechanical fault disrupted one train – the other two are unaffected.
• Indonesia’s 7.6m mtpa Tangguh LNG facility is offering four LNG cargoes for June-July loading: Argus.