Natural Gas End of Day Summary: Henry Hub Holds Losses

US Henry Hub has maintained its losses on the day during US hours, amid strong production, near normal demand and a drop in feedgas flows to LNG export terminals.

• US Natgas DEC 23 down -3.9% at 3.14$/mmbtu
• US Natgas MAY 24 down -2% at 3.11$/mmbtu
• Domestic natural gas production was yesterday holding just below the recent record high at 105.4bcf/d according to Bloomberg compared to an average of 102.7bcf/d in October.
• US natural gas demand is today near normal at 75.3bcf/d according to Bloomberg. The latest NOAA two week outlook is relatively unchanged from yesterday with above normal temperatures expected across much of the country in the 6-14 day period although temperatures remain near normal in west coast regions.
• Feedgas delivery flows to US LNG export facilities have fallen to 13.26bcf/d today according to Bloomberg driven by a decline in supply to the Sabine Pass terminal below normal.
• Sabine Pass LNG feedgas has declined 14% on the day and from over 5.2bcf/d early in November back to 3.95bcf/d today potentially indicating lower production.
• injections continue despite the traditional start to the withdrawal season.
• China has sufficient gas inventories to overcome potential supply disruptions from Central Asian countries that warned to potentially prioritize domestic supplies over exports this winter, consultant BSC said in a note.
• China's natural gas imports - both LNG and piped gas - fell to the lowest level since February at 8.79 million tons in October.
• EU imports of Russian LNG stood at around 13mn tons in the first ten months of this year, slightly lower than for the same period last year at 13.3mn tons, LSEG data showed.
• The total estimated quantity of LNG on tankers that have not unloaded for at least 20 days decreased by 12% over the last week, following six consecutive weeks of increases, to 4.77 million tons as of 5 November.
• Global weekly LNG imports rose by 38% to 8.7mn tons during the week of 30 October to 5 November, driven by increased volumes into North Asia according to BNEF.
• Global LNG imports are forecast to rise by 9% on the month to 33.9mn tons in November according to BNEF.
• Japan will ensure its energy supplies are not affected by the US sanctions on the Artic LNG 2 project in Russia, which is expected to be launched next month, Industry Minister Yasutoshi Nishimura said.
• The Excalibur vessel has set sail to west Africa, where it will be used as a floating storage unit for Eni’s 0.6mtpa Congo LNG project that is scheduled to start operations this year, according to ICIS.