Natural Gas End of Day Summary: Henry Hub Continues Slide

Henry Hub front month has extended its most recent downtrend starting Jan. 26 as it hits its lowest levels since Sep. 2020. Furthering the decline was the smaller than normal storage draw yesterday, ongoing mild weather, and steady production.

• US Natgas MAR 24 down -3.8% at 1.85$/mmbtu
• US Natgas AUG 24 down -1.3% at 2.42$/mmbtu
• Domestic natural gas demand is down again to remain below normal at 83.1bcf/d today.
• Temperatures to remain mild in the US lower-48 in the coming week to weigh on demand for heating fuel.
• US lower 48 gas production is today down slightly at 104.8bcf/d according to Bloomberg.
• More Qatari spot LNG cargoes are headed towards Asia instead of Europe due to shipping disruptions in the Red Sea with the producer offering spot LNG cargoes delivered FOB according to sources.
• Australia’s Woodside Energy Group Ltd. is in talks to buy LNG from several US export terminals according to Bloomberg sources.
• LNG exports from Nigeria in Jan rose to the highest level in two years in Jan, according to Bloomberg.
• Egypt’s LNG exports so far this year stood at 270,000 tons, down by 64%: Platts.
• India’ GAIL will issue more LNG swap tenders to exchange US term cargoes with supplies closer to India, according to Argus.
• The Russian government renewed the authorisation for LNG supplies from Yamal LNG to SEFE Singapore until 2024, according to TASS.
• Global LNG demand is forecast to rise 5% y/y to 423.4m tonnes in 2024, but capacity growth will remain limited according to the Icis 2024 LNG outlook.