Natural Gas End of Day Summary: Henry Hub Erases Gains

Henry Hub has plummeted into losses as close approaches, erasing the gains it held for most of the day. Lower LNG feedgas flows are likely now offsetting warmer weather and lower production on the day.

• US Natgas AUG 24 down 0.9% at 2.35$/mmbtu
• US LNG export terminal feedgas flows are today estimated down at 11.12bcf/d.
• Gas flows to the Freeport LNG export facility in Texas were revised lower to 0.02 bcf/day on Tuesday, indicating the facility isn’t ready to resume production.
• US domestic natural gas production has fallen to 100.80 bcf/d as of yesterday.
• Domestic natural gas demand is up to 79.2 bcf/d according to Bloomberg.
• The two-week weather forecast has shifted warmer over the weekend with above normal temperatures now expected across the whole lower 48 according to NOAA.
• US Henry Hub spot prices for 2024 have been revised up by 3 cents/MMBtu to $2.49/MMBtu, according to the EIA in its July Short Term Energy Outlook.
• US dry natural gas production has been revised up for 2024 by 1.4% to 103.5 bcf/d, while production is 2025 is expected to be 105.2 bcf/d.
• US natural gas storage likely saw a build of 52 bcf in the week to July 5: Reuters survey.
• The total estimated quantity of LNG on tankers that have not unloaded for at least 20 days fell 8.9% last week.
• Russian exports of LNG to European countries – excluding Turkey – totalled 2m mt (2.7 bcm) in June, up 23% on the month and the highest since December, Montel said.
• South Korea’s POSCO said on Tuesday that it has completed construction of the country’s first LNG terminal on the southern coast.
• North Asia’s LNG prices are set to decline as traders continue to offer cargoes for August delivery, according to Bloomberg.