Natural Gas End of Day Summary: Henry Hub Heads for Gains

US Henry Hub is headed for US close holding robust gains, supported by EIA data showing a smaller than expected injection into US natural gas storage.

• US Natgas JUN 24 up 4.9% at 2.3$/mmbtu
• US Natgas NOV 24 down 0.5% at 3$/mmbtu
• The EIA weekly gas inventories for the week ending May. 3 showed an injection of 79bcf compared to Bloomberg survey expectations of +86bcf and the seasonal normal of +76bcf.
• US storage total stocks stand at 2,563bcf compared to the five-year average of 1,923bcf.
• US LNG export terminal feedgas flows have today risen to 12.76bcf/d according to Bloomberg.
• Natural gas supply to Freeport LNG has risen to its highest level since late January at 1.702bcf/d compared to a maximum of around 2.2bcf/d.
• US domestic natural gas production was at 99.0bcf/d yesterday according to Bloomberg compared to an average of 99.5bcf/d so far in May.
• Lower 48 natural gas demand remains just above normal at 67.5bcf/d today according to Bloomberg and in line with the average seen in the last week.
• The NOAA forecast shows above normal temperatures across the US throughout the 6–14-day period after nearer normal temperatures this week.
• El Paso Natural Gas Company declared a Force Majeure at its Amarillo Compressor Station after an equipment failure. Operational capacity is down by 76,395 Dth/d through the AMAR N, and down 84,865 Dth/d through AMAR S.
• The reportedly considered EU ban on the transhipment of Russian LNG via European facilities in the 14th round of sanctions would primarily impact shipping operations from the Yamal LNG facility according to Timera.
• Egypt’s EGAS is issued an LNG buy tender for one cargo for May 29-30 delivery to Aqaba, Jordan.