Natural Gas End of Day Summary: Henry Hub Falls on Mountain Valley Start

Henry Hub is set for losses on the day as an approaching start up for the Mountain Valley pipeline spark hopes of more gas flowing from the Appalachia shale basin.

• US Natgas JUL 24 down 2.7% at 3.04$/mmbtu
• US Natgas DEC 24 down 0.9% at 3.9$/mmbtu
• The Mountain Valley Pipeline from northern West Virgina to southern Virgina received FERC approval on Tuesday despite environmental objections. Backers for the project argue the benefit of a boost to domestic energy production and lower fuel costs.
• US domestic natural gas production dipped further to 99.1bcf/d yesterday according to Bloomberg driven by a drop in Appalachia and Haynesville flows. Output averaged 100.7bcf/d in the first half of June 2023.
• Domestic natural gas demand is holding above normal at 67.8bcf/d according to Bloomberg. The NOAA 6–14-day forecast is again relatively unchanged on the day with temperatures rising above normal throughout most of the US except for the far northwest.
• US terminal feedgas flows are today up to 13.18bcf/d according to Bloomberg with supplies to Sabine Pass 0.2bcf/d higher on the day.
• US natural gas inventories likely posted below average growth in the week to June 7, according to a survey of 10 analysts, brokers, and traders by the WSJ.
• LNG stockpiles held by Japanese utilities fell 5.83% w/w to 2.1m tons in the week to June 9 from 2.23m tons the previous week, according to data released by the trade ministry.
• European imports of Russian pipeline gas and LNG rose by 5.8% m/m to 167mcm/day in May driven by increased flows via Bulgaria, according to Montel based on industry data.
• Bangladesh’s state buyer Rupantarita Prakritik Gas has cancelled two tenders totalling four LNG cargoes for June delivery, traders told Bloomberg.
• MNI Gas Market Weekly: Full piece here: https://roar-assets-auto.rbl.ms/files/64751/MNI%20Gas%20Market%20Weekly%20-%20Unplanned%20Outages%20and%20Gazprom%20Supply%20Fears%20Adding%20Support%20to%20TTF.pdf