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Natural Gas End of Day Summary: Henry Hub Lowest Since Late Feb

NATURAL GAS

Henry Hub closed at its lowest level since since Feb. 27, amid a slight rise in production, high storage levels coming out of winter, and uncertainty around curtailed US LNG exports.

  • US Natgas APR 24 down 2.3% at 1.76$/mmbtu
  • US Natgas SEP 24 down 0.9% at 2.5$/mmbtu
  • The expected return of train 3 at the Freeport export terminal from outage in the middle of March could help boost US exports although feedgas supplies to the terminal have seen additional declines at times in the last week.
  • Total feedgas flows to US LNG export terminals are today estimated at about 13.48bcf/d according to Bloomberg.
  • US domestic natural gas production edged slightly higher over the weekend to just over 101bcf/d according to Bloomberg compared to a low of 99.9bcf/d on March 6.
  • Lower 48 natural gas demand is in line with the seasonal five-year average at 80.5bcf/d today.
  • Cheniere’s Corpus Christi LNG stage 3 expansion project in Texas is 52.7% percent complete according to LNG Prime
  • Russian pipeline natural gas exports to Europe declined by 4.1% on the month in February to 2.55bcm, Entso-G data showed, while LNG shipments to Europe – excl Turkey – were down by 12.8% on the month to 1.97bcm, Kpler data showed.
  • Russia’s aim to increase LNG capacity from 30mtpa to 110mtpa by 2030 faces challenges from restrained access to capital, lack of western technologies and marketing challenges according to IEA analyst, Greg Molnar.
  • Iran has release plans to increase production from the offshore South Pars gas field in the Persian Gulf according to the Shana news agency.
  • The Biden administration’s decision to pause approvals of new LNG export licences has could affect at least seven planned LNG projects in Mexico, according to El Diario.

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