Natural Gas End of Day Summary: Henry Hub Jumps

Henry Hub front month hit its highest intraday level since Dec. 8, following announcements of a force majeure at compressor station 343 in Liberty County Texas. This added to earlier support from the expected draw in US stocks.

• US Natgas JAN 24 up 5.8% at 2.59$/mmbtu
• US Natgas JUN 24 up 3.1% at 2.51$/mmbtu
• Kinder Morgan said on its website that it is required to temporarily limit the throughput capacity Eastbound through CS 302 due to the FM.
• The EIA weekly gas inventories for the week ending Dec 15 showed a draw of -87bcf compared to the expectation for a draw of -82bcf but below the five-year average of -107bcf according to a Bloomberg survey.
• Natural gas demand is down slightly on the day to 93.4bcf/d to remain just below the seasonal average of 95.8 bcf/d according to Bloomberg.
• Feedgas supplies to US LNG export terminals today have weakened from their near record levels yesterday amid a drop in flows into Calcasieu Pass. Today’s flows are 14.612 bcf/d.
• US natural gas production was yesterday steady at 105.2/d according to Bloomberg.
• LNG freight rates from the USGC have fallen to a four-month low, according to Platts, amid falling demand and an increased supply of vessels.
• Russia’s Novatek sent force majeure notices to some LNG buyers from its upcoming export facility Arctic LNG 2 as sanctions from the US threaten the startup of the facility that was scheduled in the coming weeks according to Bloomberg.
• Germany’s decision to make Norway its largest gas supplier means it has replaced its dependence on Russian supply with that of its Scandinavian neighbour, according to Reuters.