Natural Gas End of Day Summary: Henry Hub Falls Back

Henry Hub has fallen further on the day amid pressure from a larger-than-expected and slightly above average US stock draw. This is coupled with lower LNG feedgas flows. Front month is on track for its lowest close since May 10.

• US Natgas AUG 24 down 2.6% at 2.27$/mmbtu
• The EIA weekly gas inventories for the week ending July 5 showed a higher-than-expected injection of 65bcf. This compared to Bloomberg’s expectation of a 59bcf build and the seasonal normal injection of 57bcf.
• US storage inventories continue to hold a strong surplus over the previous five-year range, with total stocks at 3,199bcf compared to the previous five-year average of 2,695bcf.
• LNG export flows to liquefaction terminals are lower again today at 11.06 bcf/d.
• The US second-largest LNG liquefaction facility, Freeport LNG, was preparing to restart processing operations by July 11, according to Reuters.
• Lower 48 natural gas production was 101.3 bcf/d yesterday, compared to the seven-day average of 102.1 bcf/d
• The 6–14-day weather forecast shows above normal temperatures across most of the lower 48 states, although pockets of colder weather in Southern California and the Great Lakes area, according to the NOAA.
• Domestic natural gas demand is down today to 78.10 bcf/d according to Bloomberg, compared to 81.29 bcf/d yesterday.
• Transwestern pipeline has declared a force majeure at station 3 compressor station near Leupp, Arizona due to a mechanical failure, the company said in a notice.
• Natural Gas Pipeline Company have lifted their force majeure at compressor station 302 in Montgomery County, Texas, effective July 12, the company said in a notice.
• An extremely cold winter could still pose a challenge for German gas supply, INES said, cited by Platts.