Natural Gas End of Day Summary: Henry Hub Falls

Henry Hub has sunk to losses on the day. Downside is driven by curtailed LNG and Mexico export flows, muted demand due to mild weather, and high storage levels.

• US Natgas APR 24 down -1.4% at 1.93$/mmbtu
• US Natgas SEP 24 down -1.9% at 2.59$/mmbtu
• US domestic natural gas production was yesterday down again to 99.8bcf/d and now back in line with output seen this time last year according to Bloomberg. Some of the decline could be due to midstream maintenance but also from slowing E&Ps well starts and possibly from operational wells according to BofA.
• Feedgas flows to US LNG export terminals are today back up slightly to 13.4bcf/d according to Bloomberg.
• Lower 48 natural gas demand is relatively unchanged at 78.5bcf/d today and still below the previous seasonal five-year average.
• New EU gas import infrastructure could result in an annual excess of 352bcm in LNG and pipeline import capacity by 2030, according to Montel citing Global Energy Monitor.
• LNG stockpiles held by Japanese utilities declined by 9.72% on the week to 1.95mn tons as of 3 March, according to data released by the trade ministry, cited by Bloomberg.
• Saudi Aramco and ADNOC are in talks to invest in US LNG projects, tapping opportunities to compete with the regional rival Qatar, sources told Reuters.
• LNG prices in the Mediterranean have climbed, pushing diffs to US Henry Hub to the highest since February and theoretically boosting attractiveness for US LNG cargoes.
• MNI COMMODITY WEEKLY: Full piece here: https://enews.marketnews.com/ct/x/pjJscQeAlewI6a9vKxAjEg~k1zZ8KXr-kA8x6nAUpSkptIPjL4SdA