Natural Gas End of Day Summary: Henry Hub Plummets

US Henry Hub has erased earlier gains and extended its losses during US hours. This despite below-expectation US inventory builds. Production levels, albeit slightly lower, remain robust and are adding pressure.

• US Natgas SEP 24 down 1.4% at 2.01$/mmbtu
• US Natgas FEB 25 down 0.4% at 3.32$/mmbtu
• The EIA weekly gas inventories for the week ending July 26 showed an injection of 18bcf compared to the expectation for an injection of 31bcf according to a Bloomberg survey and the seasonal normal injection of about 34bcf.
• US storage inventories however still hold a strong surplus of 441bcf, with total stocks at 3,249bcf compared to the previous five-year average of 2,808bcf.
• US domestic natural gas production remains strong today but is down to 102.75 bcf/d, the lowest since July 22, according to Bloomberg.
• US LNG export terminal feedgas flows are today at 12.19 bcf/d according to Bloomberg.
• US LNG exports fall to 6.76m tonnes in July due to a 57% drop in Freeport LNG shipments, according to Kpler.
• Domestic lower 48 natural gas demand has risen again to 83.98bcf/d today, boosted by rising cooling demand. This is the highest level since July 9.
• Shell’s Canada LNG export project is expected to produce its first cargoes in the middle of 2025 according to its CEO Wael Sawan.
• The proposed Blackcomb Pipeline’s FID was announced July 31, offering hope of further gas pipeline capacity to address a growing bottleneck in the region.
• LNG imports to Taiwan surged 9% y/y to a record in July at nearly 2m tons with a boost to power consumption due to recent hot weather, according to Bloomberg.
• July’s average gas flows from Russia’s Gazprom towards Europe hit a year to date high highest of the year in July – up 5.7% y/y. Reuters said.