Natural Gas End of Day Summary: Henry Hub Hitting 6-Month Low

Front month Henry Hub has accelerated its decline in US hours to what would be its lowest closing level since June 12. Updated CPI data, a stable outlook for strong production in 2023, and milder weather are piling pressure on prices.

• US Natgas JAN 24 down -4.9% at 2.31$/mmbtu
• US Natgas JUN 24 down -2.9% at 2.36$/mmbtu
• Henry Hub Prices have been revised to $2.79/MMBtu in 2024, down from 14.3% on November’s estimate.
• US production of natural gas has been revised to 104.9 bcf/d in 2024, compared to the previous estimate of 105.1 bcf/d in November, down 0.2%.
• Feedgas flows into US LNG terminals were down 7% on the day to 14.046 bcf/d.
• Chevron aims to increase gas sales from its Tamar gas field to Egypt to an additional 43bcm of gas, in additional to the already contracted 25.3bcm contracted to 2034 according to Mees.
• The total estimated quantity of LNG on tankers that have not unloaded for at least 20 days decreased by 8.7% last week to the lowest level since end-September, while LNG at sea for 30 days edged higher on the week according to Bloomberg estimates.
• Global LNG imports are forecast to rise by 10% on the month to 38mn tons in December, up by 4% year on year, with North Asian imports projected to lead the growth amid rising heating demand and nuclear maintenance according to BNEF.
• Most of India’s LNG import terminals are underutilised as capacity expands faster than demand, according to the Economic Times.