Natural Gas End of Day Summary: Henry Hub Falls

Henry Hub is on track for its lowest close since July 18 amid a slightly above-expectation build in US stocks.

• US Natgas AUG 24 down 3.4% at 2.04$/mmbtu
• US Natgas JAN 25 down 2.1% at 3.47$/mmbtu
• The EIA weekly gas inventories for the week ending July 19 showed an injection of 22bcf compared to the Bloomberg expectation of +11bcf and the seasonal norm of +38bcf.
• US storage inventories however still hold a strong surplus of 456bcf, with total stocks at 3,231bcf compared to the previous five-year average of 2,775bcf.
• US LNG export terminal feedgas flows are today at 12.52bcf/d according to Bloomberg with Freeport LNG supply recovering to 1.24bcf/d after a dip to 0.49bcf/d as reports suggested a reduction in power supply to the terminal yesterday.
• Freeport LNG will likely resume full operations at three trains in early August according to a Platts source.
• US domestic natural gas production was almost unchanged yesterday at 103.0bcf/d
• Domestic lower 48 natural gas demand edged down to 76.4bcf/d today according to Bloomberg.
• Australia’s Ichthys LNG export facility will run at reduced rates as it repairs two of its trains following an unplanned outage, Bloomberg said.
• North Asia spot LNG prices are around $12/mmbtu supported by hot temperatures across Japan.
• Kpler data shows that Egypt’s EGAS received five LNG cargoes this month, with the sixth arriving this weekend.
• The volume of JKTC LNG demand that is not covered by long-term contracts could almost double by the end of the decade, BNEF said.
• Indian LNG buying for August to October has proved supportive for the market in July.
• Novatek shipped the second production train for the Arctic 2 LNG project, according to Bloomberg citing Kommersant.