Natural Gas End of Day Summary: Henry Hub Jumps

Natural gas jumped on the day to its highest closing level since Feb. 12, driven by news of planned output cuts from producers in 2024.

• US Natgas MAR 24 up 12.5% at 1.77$/mmbtu
• Producers such as Chesapeak, Antero, and Comstock, are set to scale back their natural gas drilling operations.
• Chesapeake Energy announced its capital spending plan will fund around 2.65bcf/d to 2.75bcf/d of natural gas output in 2024, significantly below the firm’s previous output.
• US lower 48 gas production was yesterday down to 103.2bcf/d according to Bloomberg driven by lower Permian and Haynesville output.
• Feedgas flows to US LNG export terminals are today down at 12.94bcf/d.
• Domestic natural gas demand is down further today at 84.8bcf/d and back below the seasonal normal of around 90bcf/d.
• US natural gas stocks likely saw a below-average withdrawal in the week to Feb. 16 of 66 bcf according to a survey by the WSJ.
• Exxon Mobil is considering the option to produce LNG in Guyana, according to Bloomberg.
• European natural gas consumption has declined by 20% since Russia’s invasion of Ukraine, with the region’s LNG demand to peak in 2025 according to the IEEFA.
• North Asian spot LNG prices have reached a near three-year low, amid milder weather, healthy stockpiles, and robust global supply.
• Weak spot LNG prices globally have sparked spot buying interest in India and the Middle East, aiding WAF and US sellers, Platts said.
• Indian natural gas consumption rose 24% year on year in January, with gains seen from all sectors, according to ICIS and PPAC data.