Natural Gas End of Day Summary: Henry Hub Oscillates

Henry Hub has struggled for direction near US close, amid a surge and subsequent reversal. Higher daily demand and a drop in production have been weighed against upcoming forecasts of lower heating demand, coupled with lower LNG feedgas flows.

• US Natgas MAR 24 up 0.2% at 2.08$/mmbtu
• US Natgas AUG 24 down -1% at 2.55$/mmbtu
• Heating demand across the US for the week ending Feb. 10 is set be 60 heating degree days (HDD) below the long-term normal, according to Bloomberg.
• Lower 48 natural gas demand is higher today up at 94.75bcf/d but remains just below the five-year normal for the time of year of around 97.5bcf/d.
• US domestic gas production has dipped slightly from last week down to 104.0bcf/d today according to Bloomberg compared to an average of 104.6bcf/d in the previous week.
• Feedgas supply to US LNG export terminals are today down to 13.5bcf/d according to Bloomberg with lower supply to Corpus Christi adding to the estimated month-long train outage at Freeport.
• The US emphasized to its LNG importers that the pause on new LNG export project approvals does not threaten LNG supplies to customers, US Assistant Secretary of State for Energy Resources Geoffrey Pyatt said.
• The weak JKM premium to European gas prices suggests that the high volumes delivered to Asia are more likely the result of a supply push than of a demand pull, Goldman Sachs said in a note.
• An Australian gas industry group has called on the government to unlock new supply to avoid domestic shortfalls and to maintain the country’s export industry, cited by Bloomberg.
• Venture Global LNG has signed a deal for the right to deliver 3m tons of LNG per year to the Grain LNG import terminal for 16 years from 2029.