Natural Gas End of Day Summary: Henry Hub Hit 7-Month Low

Henry Hub has slumped to its lowest level since July 2020. Signs of continued strong production, restricted LNG feedgas flows, and near-term milder weather continue to provide downside.

• US Natgas MAR 24 down -4.4% at 1.77$/mmbtu
• Domestic natural gas demand is slightly higher up to 91.0bcf/d today but still below the seasonal normal of around 99bcf/d at this time of year.
• US gas production from top-shale producing regions is set to be 100.45 bcf/d in February before easing to a two-month low of 100.425 bcf/d in March.
• Feedgas flows to US LNG export terminals are today at 14.1bcf/d according to Bloomberg with a recovery in Sabine Pass supply. Flows to Freeport LNG are still curtailed by about 0.6bcf/d.
• US lower 48 gas production was yesterday holding strong up at 105.0bcf/d according to Bloomberg compared to an average of 104.75bcf/d so far in February.
• The Everett Marine LNG terminal may be saved from closure as two regional utilities look for deal to source fuel for the plant, according to Bloomberg.
• The fundamental gas balance is consistent with TTF & JKM prices around 20% higher than current levels at around 12$/mmbtu and with more volatility ahead according to Timera Energy global gas modelling.
• ICE has the cut the margin requirements on European front-month TTF gas by another 19%.
• ADNOC Gas expects little change in its sales for 2024 compared to the previous year, according to Platts.