Natural Gas End of Day Summary: Henry Hub Faltering

US Henry Hub is trading lower but has stabilised as US close approaches. Warmer weather forecasts across much of the US in the coming weeks, coupled with record production levels have added downside to prices during the day.

• US Natgas DEC 23 down -7.3% at 3.26$/mmbtu
• US Natgas MAY 24 down -4% at 3.17$/mmbtu
• Domestic natural gas production was yesterday at 104.5bcf/d after reaching a new record of 105.5bcf/d on 4 Nov according to Bloomberg compared to around 99.2bcf/d in early November last year.
• US natural gas demand is today near normal at 74.4bcf/d according to Bloomberg. Near or slightly above normal temperatures are expected in the 6-14 day forecast warming to above normal for most areas except the west coast in the 8–14-day period according to NOAA.
• Feedgas delivery flows to US LNG export facilities are today back up to 14.05bcf/d according to Bloomberg after falling to 13.2bcf/d yesterday due to a drop in supply to Freeport while Sabine Pass supply has drifted back lower so far in November.
• France’s new Le Havre LNG terminal is set to receive its first cargo Monday according to ICIS.
• Russian LNG production this is year is expected at 30mn tons, compared with 32.5mn tons in 2022, according to Deputy PM Alexander Novak.
• China’s Sinopec signed a new agreement with QatarEnergy to buy LNG for the duration of 27 years, both companies said.
• A record 200m mtpa of new LNG supply is under construction amid Asia’s drive to reduce dependence on coal and as Europe looks to replace Russian gas. Depending on demand from sustained economic growth across emerging markets in Asia, the market will need another 60m mtpa of new LNG by 2033 according to Wood Mackenzie.
• All available spot slot capacity for the period between 14 December and 6 April 2023 at the Inkoo LNG have been reserved during the latest capacity allocation round according to Gasgrid.
• New Fortress Energy Signs FSRU Charter to Start Ops of LNG Import Terminal in Santa Catarina, Brazil in Jan 2024
• BP’s planned 2.5mtpa first phase of the Greater Tortue Ahmeyim LNG development on the maritime border of Senegal and Mauritania is likely delayed to 2Q24, from 2023 initially scheduled, Kosmos Energy said, cited by Reuters.
• Egypt imported an LNG cargo into its Ain Sukha terminal on the Red Sea Nov. 3, according to Platts shipping data, amid continued scarcity of gas following lower Israeli pipeline flows.