Natural Gas End of Day Summary: Henry Hub Down 13.5% on Week

Henry Hub front has furthered losses today, driven by healthy natural gas storage levels and strong US production. This is despite indications of warmer weather across the US in the coming days. Front month is down around 13.5% on the week.

• US Natgas AUG 24 down 4% at 2.32$/mmbtu
• US Natgas JAN 25 down 1.6% at 3.66$/mmbtu
• US domestic natural gas production is almost unchanged from yesterday estimated at 102.2bcf/d, according to Bloomberg. Output has so far this month averaged 102.3bcf/d compared to 100.7bcf/d in June and 100.2bcf/d in May.
• US LNG export terminal feedgas flows are today estimated at 12.97bcf/d, a recovery from near 12bcf/d earlier this week but supplies to both Sabine Pass and Calcasieu Pass are still slightly below highs from earlier this year.
• Domestic natural gas demand is today up at 77.0bcf/d according to Bloomberg.
• Dangerously hot conditions will dominate the remainder of the July 4th weekend across the US West Coast, Southeast, and Middle Atlantic seaboard, according to Reuters.
• El Paso Natural Gas Company has resolved the Line 2000 Casa Grande C to Wenden Force Majeure declared Feb. 19, the company said.
• LNG prices in NWE widened versus TTF to a month low, with traders citing improved cargo supply for the weakening, Platts said.
• Global LNG demand is set to rise 2% m/m in July to 32.1m, according to BNEF.
• Peak LNG demand in China is likely to be capped over the summer by increased hydropower generation in the south.
• Golar LNG signed a deal with Pan American Energy for a 20-year deployment for a floating LNG vessel in Argentina, Bloomberg said.
• India might have to rely heavily on LNGimports and undertake massive infrastructure development to achieve plans to add 500mcm/d of gas consumption by 2030, according to IEEFA.