Natural Gas End of Day Summary: Henry Hub Falls

Henry Hub reversed earlier gains on the day to trade lower, with pressure from expectations of falling heating demand and seasonally high stock levels.

• US Natgas MAY 24 down 1.2% at 1.84$/mmbtu
• US Natgas OCT 24 down 1.7% at 2.57$/mmbtu
• US domestic natural gas production was lower again yesterday at 99.2bcf/d having fallen from just over 101bcf/d on March 31.
• Feedgas flow to US LNG export terminals are today estimated up to 12.73bcf/d.
• Lower 48 natural gas demand is still above normal with today estimated at 80.9bcf/d according to Bloomberg.
• The US forecast shows as generally warming trend which will help to limit heating demand.
• LNG buyers in Japan are seeking additional cargoes for delivery in May to July following a flurry of purchases last month according to Bloomberg but the pace of procurement is slowing.
• Total traded volumes in the JKM LNG derivates market on ICE reached the highest since Q3 2021 in Q1.
• Oil major Shell is seeking a long-term license from the US before making an FID on the Dragon natural gas project in Venezuela, according to Reuters.
• Global industrial gas demand shows signs of recovery with preliminary data suggesting an increase of more than 7% (or over 20 bcm) yoy through the 2023/24 heating season in China, India, Europe and the US according to IEA analyst Greg Molnar.
• China's March 2024 LNG imports to China rose to a record for March of 6.8m mt: ICIS
• Russian authorities and Novatek are working to resolve the task of exporting products from Arctic LNG 2, Energy Minister Nikolai Shulginov said.