Natural Gas End of Day Summary: Henry Hub Loses Ground

Henry Hub is headed for US close trading lower on the day as it nears its intraday lows. However, lower production levels year on year and recovering LNG feedgas supplies are likely to cap any downside.

• US Natgas JUN 24 down 3.5% at 2.66$/mmbtu
• US Natgas NOV 24 down 1.5% at 3.17$/mmbtu
• US domestic natural gas production was yesterday estimated at 99.9bcf/d according to Bloomberg,
• US terminal feedgas flows have today recovered to 13.07bcf/d according to Bloomberg.
• Domestic natural gas demand is today at 68.2bcf/d according to Bloomberg compared to the seasonal normal of just over 62bcf/d.
• The latest 6–14-day NOAA forecast has turned slightly warmer with above normal temperatures expected on the USGC.
• Stronger industrial and gas-fired natural gas demand across the South-Central US is eating away at the spring gas storage surplus, Platts said.
• The total estimated quantity of LNG on tankers at sea for at least 20 days fell 7.7% over the last week to 3.45m mt as of May 19: Bloomberg.
• US natural gas is expected to reach the $3/MMBtu level as early as 2025, as electricity-intensive data centres boost power-plant demand, law firm Hayes & Boone said, cited by Bloomberg.
• Global LNG imports remained relatively flat in the week to May 19 at 7.44m metric tons, according to BNEF.
• China’s natural gas imports could rise to climb 300bcm and match domestic supply capacity to cover half of total demand
• A moratorium on new US LNG export projects could create opportunities for producers in the Middle East and Russia, Woodside’s CEO Meg O’Neill said, cited by Reuters.
• The global LNG trade now make up around 54% of the global gas trade, according to CEDIGAZ.