Natural Gas End of Day Summary: Henry Hub Falls

US Henry Hub plummeted later during US trading, reversing earlier gains in a volatile session, amid a slight fall in LNG export flows, rising production, and a more mixed weather forecast. The wider global gas complex has seen some downward pressure from the cancellation of strike action at Australian LNG facilities.

• US Natgas NOV 23 down -0.8% at 3.05$/mmbtu
• US Natgas APR 24 down -0.4% at 3.13$/mmbtu
• US domestic natural gas production was yesterday estimated at 103.5bcf/d according to Bloomberg after reaching a record high of 104bcf/d on 16 Oct and compared to approximately 99.5bcf/d this time last year.
• Natural gas deliveries to US LNG export facilities are still holding near the highest since April at 14.3bcf/d today according to Bloomberg compared to flows below 13bcf/d earlier this month.
• US domestic natural gas demand is back down near to the seasonal five year average at 68.2bcf/d today according to Bloomberg with a mixed weather forecast for the coming two weeks. Near term below normal temperatures on the East Coast are expected to turn above normal in the next week with a band of warmer weather moving across from the West. The West coast in then expected to see cooler weather from early next week.
• Trinidad and Tobago obtained an amended license from the US Treasury on Tuesday that will allow them to pay Venezuela in cash for the natural gas it will import from a project with the South American nation, Oil Minister Stuart Young said, cited by Bloomberg.
• Stronger LNG demand from China could add to the upside risk to European gas prices with increased competition for LNG supplies over the coming winter. Economic data from China last night showed better than expected GDP although Asia’s LNG imports in the January-September period this year have remained below levels seen in 2021 according to Bloomberg.
• Russian pipeline gas supplies to China could very soon reach the level that we previously exported to Western Europe," according to Gazprom CEO Alexei Miller.
• European LNG net import flows rose up to 358mcm/d on 16 Oct according to Bloomberg after seeing levels around 290mcm/d over the previous few days.
• LNG stockpiles held by Japanese power generators increased by 15.5% last week to 2.16mn tons as of 15 October, according to data released by the trade ministry.
• Shell has signed a supply deal for the Netherlands with QatarEnergy to buy 3.5mtpa of LNG from 2026 for the duration of 27 years, according to the Qatari company, cited by Bloomberg.
• Asia’s LNG imports in the January-September period this year remained below levels seen in 2021, lacking the anticipated post-opening gas recovery in China according to Bloomberg.
• Equinor’s CEO said Wednesday that European gas is in a stronger position than last year but numerous variables and a volatile winter remain.
• MNI COMMODITY WEEKLY: China Wields Power Over Putin Charm Offensive this Week. – Full piece here: https://enews.marketnews.com/ct/x/pjJscQDcw-QI6ag0IRhyTw~k1zZ8KXr-kA8x6nHDsKsptIPjO1OcQ