Natural Gas End of Day Summary: Henry Hub Falls

US Henry Hub is slightly down on the day as the market drifts down from a peak of nearly 3$/mmbtu on 29 Sep.

• US Natgas NOV 23 down -2.9% at 2.84$/mmbtu
• US Natgas APR 24 down -1.5% at 2.95$/mmbtu
• Natural gas deliveries to US LNG export terminals are today stable at 12.56bcf/d according to Bloomberg but still curtailed due to the Cove Point maintenance taking about 0.75bcf/d offline.
• Domestic natural gas consumption has increased in the last few days after a dip lower in the second half of September. Demand is up to 70.5bcf/d according to Bloomberg in line with the seasonal trend at the start of the winter heating season. The latest NOAA outlook shows above normal temperatures in the west in the 6-10 day period spreading into more central areas in the 8-14 day period. Below normal temperatures in the East heading in to next week are expected to return toward normal into the middle of October.
• US domestic natural gas production was yesterday estimated at 100.6cf/d according to Bloomberg compared to the average of 101.45bcf/d in September.
• Export flows to Mexico are today estimated still high at 7.06bcf/d.
• US exports of LNG fell in September amid outages at terminals, according to Reuters.
• In total, 7.12m mt of LNG was exported from the US in September, down 2.73% on the month.
• LNG supply to Europe and Turkey fell to the lowest in 21 months in September although last week supplies increased 2% on the week according to Montel citing Kpler data.
• The unfavourable arbitrage economics for Atlantic cargoes to move to APAC has restricted inter-basin flows and is hindering Asian buyers’ ability to utilize spot supply in the winter, according to Platts.
• US sanctions on the use of Russian transshipment terminals for LNG are creating logistical difficulties for Japan’s planned deliveries from the facilities, Daisuke Harada, director of JOGMEC, said.
• Planned LNG production in Russia in 2024 will reach 47.3m mtpa in 2024, according to the Russian state Energy Development Programme, according to TASS.