Natural Gas End of Day Summary: Henry Hub Continues Fall

US Henry Hub is set to continue its steep downward trajectory seen since Nov. 3, heading for its lowest close since Oct. 25. Warm weather across the eastern half of the US limiting is limiting domestic demand and putting pressure on prices.

• US Natgas DEC 23 down -1.24% at 3.10$/mmbtu
• The latest NOAA two-week outlook is showing above normal temperatures in central areas in the 6-14 days period shifting towards the east coast in the second week of the outlook. The west coast is holding near normal. US natural gas demand is higher today but still near normal at 77.8bcf/d according to Bloomberg.
• Domestic natural gas production was yesterday slightly lower at 104.8bcf/d according to Bloomberg after reaching a record high at the weekend but still strong compared to an average of 102.7bcf/d in October.
• Feedgas delivery flows to US LNG export facilities are again below the average from the last month at 13.6bcf/d today according to Bloomberg. Supply to the Sabine Pass terminal has recovered slightly but still below recent strong flows with a pipeline notice yesterday suggesting the supply reduction was due to maintenance expected through Tuesday.
• Export flows to Mexico are today at 5.9bcf/d today after a dip lower over last weekend.
• LNG stockpiles held by Japanese power generators increased by 8.72% week on week to 2.37 million tons as of 5 November, well above the five-year average, according to data released by the trade ministry.
• China’s LNG imports in the first ten months of this year were up by almost 15% from 2022 levels according to ICIS.
• Qatar’s Ras Laffan mega LNG complex is still likely to still undergoing maintenance, as no tankers have loaded at the Ras Kaffan Berth 3 since 7 September, Bloomberg ship-tracking data showed, which led to a significant decline in October shipments.
• Nigeria’s export LNG facility at Bonny continues to remain under a force majeure, with current output now falling to below 50% of its nameplate capacity of 22.5m mtpa, according to Platts.
• Excelerate Energy said Nov. 8 that it has signed a long-term deal to supply LNG to Bangladesh’s Petrobangla, according to Bloomberg.
• New Fortress Energy expects LNG production to begin at Mexico’s Altamira export plant by the end of 2023, according to Reuters.
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