Natural Gas End of Day Summary: Henry Hub Higher

US Henry Hub is set to close higher on the day, as cooler weather forecasts in the mainland USA and a slight fall in production are countering lower demand and weaker LNG feedgas flows.

• US Natgas NOV 23 up 1.2% at 3.01$/mmbtu
• US Natgas APR 24 up 1.3% at 3.09$/mmbtu
• Domestic natural gas production yesterday decreased to 101.67bcf/d, down from almost record highs of 104.05bcf/d the previous day. Production, however, remains above the seasonal average of 94.02bcf/d.
• US natural gas demand is estimated lower today and has fallen below the five-year range to 66.17bcf/d, down from 67.63bcf/d yesterday. The latest weather forecast has been slightly revised up but most of the US is forecast to have below-norm temperatures during the 6-10 day period.
• Feedgas deliveries to US LNG export facilities edged down slightly on the day to 13.65bcf/d compared with 13.70bcf/d yesterday according to Bloomberg. Flows remained above the 30-day moving average of 13.31bcf/d. Deliveries to Sabine Pass have dipped modestly to 4.47bcf/d from 4.53bcf/d yesterday.
• Marginal volumes of US LNG are still heading to Europe, despite the arbitrage economics favouring Asia, amid delays at the Panama Canal, Platts said.
• Russia produced 47.7 bcm of natural gas in September, up 2% on the same month in 2022, according to Rosstat data and Bloomberg calculations
• TotalEnergies is expected to make a final investment decision on a new LNG terminal at Mozambique's Matola port by September next year.
• LNG stockpiles held by Japanese power generators rose another week by 3.72% to 2.23mn tons as of 22 October, the highest level since June, trade ministry data showed.
• Egyptian LNG exports are below the seasonal average and showing signs to be clearly impacted by the conflict in Israel, Goldman Sachs said in a note.
• The LNG vessel Minerva Limnos has diverted to the US after it was initially due to arrive in Egypt according to Bloomberg ship-tracking data, just after last week a vessel diverted from Egypt to Algeria.
• India’s September LNG imports rose by 21% year on year to 2.27bn m³ in September, supported by rising power demand during the festive season and as industrial activity gained momentum following the end of the monsoon season according to preliminary oil ministry data.
• German gas grid company Gascade has gained approval to complete a pipeline link between Mukran port in the Baltic Sea Island of Reugen and Lubmin to boost LNG flows, according to Reuters.
• MNI Commodity Weekly: US Sanctions Relief for Venezuela Faces Pressure After Opposition Election Result -Full piece here: https://enews.marketnews.com/ct/x/pjJscQOJlL0I6ag0ckgnSw~k1zZ8KXr-kA8x6nEW5X1ptIPjO1OcQ