Natural Gas End of Day Summary: Henry Hub Headed for Losses

Henry Hub has erased all its daily gains and is now trading lower on the day, as weaker domestic demand and high inventories have added downside. Henry Hub is set to end the week around 9% up from the beginning.

• US Natgas NOV 23 down -1.8% at 3.16$/mmbtu
• US Natgas APR 24 up 0.4% at 3.15$/mmbtu
• Domestic natural gas production yesterday fell to 102.68bcf/d from 103bcf/d the day before but remained well above the seasonal average.
• US natural gas demand is estimated lower today below the five-year range 65.72bcf/d, from 65.86bf/d yesterday. The latest 6-10 days weather forecast shows an upward revision in temperatures throughout the US, with above average weather in Western US, while Eastern US temperatures are leaning towards below the seasonal norm.
• Feedgas deliveries to US LNG export facilities rose on the day to 13.81bcf/d, up from 13.53bcf/d the day before and above the 30-day moving average of 13.44bcf/d. Flows to Sabine Pass increased to 4.49bcf/d, from 4.35bcf/d on Thursday.
• Freeport LNG received preliminary approval to re-start areas of the facility closed since the fire in June 2022, according to Bloomberg.
• FERC on Thursday agreed to a revised commissioning plan for Venture Global LNG's Calcasieu Pass facility, allowing it to turn on three processing trains while work on faulty power equipment continues according to Reuters.
• China’s LNG terminal inventory was 367.9k mt as of Oct. 26, down 8.4k mt on the previous week, according to OilChem.
• Chevron is prioritising gas supply to Israel and Jordan from wells in the Mediterranean Sea despite following the temporary closure of the Tamar field during the current outbreak of conflict with Hamas, according to Bloomberg.
• Egypt could restart LNG exports as domestic demand is seasonally lower, Deputy COO or Natural Resources at Eni, Cristian Signoretto, said during the earnings call.