Natural Gas End of Day Summary: Henry Hub Furthers Fall

Henry Hub is extending its decline today amid weaker demand and sustained strong production. Front month is on track for its lowest close since May 14.

• US Natgas AUG 24 down 2.5% at 2.36$/mmbtu
• US Natgas JAN 25 down 1.3% at 3.68$/mmbtu
• The EIA weekly gas inventories for the week ending June 28 showed an injection of 32bcf compared to the seasonal normal injection of 69bcf.
• US domestic natural gas production is today estimated at 102.1bcf/d, according to Bloomberg.
• The start-up of long-term shipping contracts on the Mountain Valley Pipeline is already boosting gas transmissions on the new line, further supporting a rebound in Appalachian production, Platts said.
• US LNG export terminal feedgas flows are today estimated back up to 12.9bcf/d.
• Domestic natural gas demand is today slightly lower at 73.7bcf/d according to Bloomberg.
• Australia faces the risk of a gas shortfall by 2027 and could require the redirection of spot LNG supplies for domestic consumers,
• LNG cargo deliveries are not expected to see major impacts from the passage of hurricane Beryl through the Caribbean, Platts said.
• Global LNG liquefaction levels are now back above 2023 levels, and notably, above the five-year average, according to Platts.
• German LNG imports and sendout were the highest they have ever been in June according to ICIS.
• Gastrade expects to launch commercial operations at Greece’s 5.5bcm Alexandroupolis FSRU-based LNG import terminal in October.
• Asian LNG demand flexibility is rapidly emerging as a new force for setting global marginal prices, Timera said.
• Egypt has contracted for all the fuel it will need to end load-shedding power cuts this summer its Prime Minister Mostafa Madbouly said.
• NW European LNG prices have trended below oil-index contract prices and could favour spot cargo purchases, Platts said.