Natural Gas End of Day Summary: Henry Hub Falls

Henry Hub has fallen, although has regained some of its earlier losses and rebounded from its intraday low of $3.053/MMBtu, as milder weather, and higher production counter a boost in LNG exports.

• US Natgas NOV 23 down -3.6% at 3.12$/mmbtu
• US Natgas APR 24 down -2.1% at 3.19$/mmbtu
• The two-week forecast is generally showing slightly above normal temperatures with temperatures shifting for 21-25 October. Below normal temperatures in eastern areas in the coming days are forecast to warm back towards normal from mid next week as warm weather in the west spreads across the country.
• US domestic natural gas production is today estimated up at 102.9bcf/d according to Bloomberg having reached a new high of 103.6bcf/d yesterday.
• Natural gas deliveries to US LNG export facilities are today estimated up to the highest since April at 14.4bcf/d according to Bloomberg amid strong supplies to Sabine Pass relative to the flows seen in recent months.
• Union workers this weekend voted in a ballot held by the Offshore Alliance to reaffirm strike action from 19 October at Chevron’s Gorgon and Wheatstone LNG facilities, the Offshore Alliance said via Facebook.
• Qatar is still looking to sign long term contracts to cover up to two thirds of its new capacity due online in the coming years, according to Bloomberg.
• Total flexible LNG supply above destination-specific contract levels is set to rise 21% to 51.5m metric tons this winter due to higher output from Freeport LNG in the US according to BNEF. Some added flexible supply volumes will come from the Pacific Basin and Middle East and Africa
• European natural gas storage is up to 97.89% full on 14 Oct above the five year range according to GIE data after high end of season injection rates.
• European storage inventories at the end of winter are likely to be significantly lower than last year but the region should have ample gas with a normal winter according to Timera Energy.
• LNG net import flows have averaged around 320mcm/d in the week to 14 Oct according to Bloomberg compared to approximately 400mcm/d seen this time last year.