Natural Gas End of Day Summary: Henry Hub Loses Ground

Henry Hub has reversed much of yesterday’s gains as steady production and healthy storage levels limit upside. This is despite improved optimism around the ramp up of Freeport LNG.

• US Natgas AUG 24 down 3.1% at 2.18$/mmbtu
• US Natgas JAN 25 down 1.6% at 3.64$/mmbtu
• US LNG export terminal feedgas flows are today up to 12.49bcf/d according to Bloomberg with Freeport supply up to nearly two third of capacity, showing as 1.44bcf/d yesterday and 1.28bcf/d today.
• US domestic natural gas production is holding steady at 102.4bcf/d today and in line with the average of 102.3bcf/d seen so far in July.
• Domestic lower 48 natural gas demand is today estimated at 77.5bcf/d according to Bloomberg. The US weather forecast has again shifted slightly warmer since yesterday with at or above normal temperatures now expected across most of the US throughout the 6-14 NOAA forecast.
• Export flows to Mexico are today at 7.16bcf/d according to Bloomberg.
• The total estimated quantity of LNG on tankers that have not unloaded for at least 20 days increased by 8.1% last week to 4.04m mt as of July 21, Bloomberg said.
• Freeport LNG loadings resumed this week, adding support for U.S. natural gas prices after the Beryl closure led to around 10 cancelled cargoes through August.
• Global LNG demand fell 15% on the week in July 15-21 to 6.62m metric tons mainly driven by Asia, according to BNEF.
• The 37.6bcm Driftwood LNG project on the US Gulf coast is more likely to proceed under new Woodside Energy ownership, according to Montel sources.
• China’s natural gas consumption is expected to rise by 6.5-7.7% on the year in 2024, according to a report issued by the National Energy Administration, cited by Xinhua.