Natural Gas End of Day Summary: Henry Hub Falls

Henry Hub has eased back today, although is holding most of yesterday’s gains. The earlier surge followed a larger than expected decline in US natural gas storage and mixed weather expected across the US.

• US Natgas FEB 24 down -1.6% at 2.52$/mmbtu
• US Natgas JUL 24 down -0.4% at 2.67$/mmbtu
• The EIA weekly gas inventories for the week ending Dec 22 showed a draw of -87bcf compared to the seasonal normal draw of -87bcf. The total US inventories remain well above season normal levels at 3,490bcf compared to the average of 3,205bcf.
• Gas supplies to US LNG export terminals are relatively unchanged on the day at 14.38bcf/d today according to Bloomberg with feedgas flows to Corpus Christi still below normal.
• Lower 48 natural gas demand is up again to 91.85bcf/d according to Bloomberg to hold above the seasonal normal.
• The current warm temperatures are expected to cool slightly into January with below normal temperatures in southern areas in the 6–10-day period but above normal holding on in the far north.
• US natural gas production is steady at 105.45bcf/d according to Bloomberg and in line with the average from the previous week to hold just below the record levels of 106.45bcf/d seen earlier in December.
• LNG on water remains at the top end of the previous five year average despite falling over the last week back to 3.149m metric tonnes according to Bloomberg.
• ADNOC LNG and ENN LNG are in discussions for a deal to supply 1m mt/year of LNG for 15 years according to S&P Global Commodity Insights.
• China’s natural gas demand could increase between 6% - 8% in 2024 year on year according to the Chongqing Petroleum and Gas Exchange via Bloomberg.
• The Orion Bohemia has loaded the first cargo from the 3.6mtpa Prelude plant off Australia since mid-August according to ICIS.