Natural Gas End of Day Summary: Henry Hub Plunges

Henry Hub is heading for its lowest close since April 26. Continued strong US production levels and lower exports to Mexico are offsetting a recovery in LNG feedgas and forecasts for higher domestic cooling demand.

• US Natgas AUG 24 down 7.5% at 1.86$/mmbtu
• US Natgas JAN 25 down 0.4% at 3.47$/mmbtu
• US LNG export terminal feedgas flows are today estimated up to 13.39bcf/d according to Bloomberg with Freeport LNG supply recovering up to 2.24bcf/d today. Total US feedgas is near the highest since March of 13.58ncf/d on June 1.
• US domestic natural gas production was strong up at 103.3bcf/d over the weekend as output has gradually increased from a low in late April. The US gas rig count fell back slightly last week to 101.
• Domestic lower 48 natural gas demand remains above normal at 79.3bcf/d today according to Bloomberg. T
• US cooling demand for the week ending Aug. 3 is forecast to be 27 cooling degree days (CDD) above the long-term normal, according to Bloomberg, citing the NOAA.
• Asian LNG imports are on track to rise to the highest since January at 24.85m metric tons in July,
• Israel’s Tamar gas field plans maintenance for Sep. 18-28, according to Bloomberg citing Chevron.
• Oman plans to add a new liquefaction train at its three-train Qalhat complex by 2029. The fourth 3.8m mtpa train will take the facility’s total production to 15.2 mtpa.
• Russia’s largest producer of LNG in June cut its processing at Arctic LNG 2 to the lowest level since February, after US sanctions curtailed exports, Bloomberg said.
• Russia’s Murmansk LNG project is expected to have two trains of 6.8m mtpa each year, documents seen by Reuters showed July 29.