Natural Gas End of Day Summary: Henry Hub Poised for Weekly Losses

Henry Hub front month is trading between rangebound and negative, having seen earlier gains making way for losses. Prices ranged between $2.996/MMBtu and $3.074/MMBtu. The second highest daily feedgas intakes into LNG terminals are countering high storage inventories, tepid demand for gas heating and higher domestic production.

• Although largely flat on the day, Henry Hub looks set for losses of 13-14% since the start of the week, as milder weather and high storage levels keep the market at ease going into the winter months. Henry Hub is also down around 10% on the month, despite cooling temperatures.
• US Natgas DEC 23 down -0.1% at 3.04$/mmbtu
• US Natgas MAY 24 down -1.2% at 3.02$/mmbtu
• Feedgas intake into US LNG terminals has climbed to its highest daily level since April at 14.778 bcf/d according to Bloomberg compared to the record 14.888 bcf/d on Apr 16.
• Domestic natural gas demand is following the seasonal trend higher up to 82.1bcf/d today according to Bloomberg. Cool weather on the East Coast and Gulf Coast in the coming week will gradually give way to above normal spreading in from the west by late next week. The latest NOAA 6-14 day forecast shows above normal temperatures across the whole country except the far West Coast.
• Domestic natural gas production is today still near record levels at 105.0bcf/d according to Bloomberg and in line with the average so far in November but above the October average of 102.7bcf/d.
• More than 20.0bcf/d of natural gas pipeline capacity is under construction, partly completed, or has been approved to deliver to the five under construction US LNG export terminals according to EIA.
• China, the largest importer of LNG, is progressively boosting its resales of cargoes to other buyers in APAC to profit from price volatility, according to Reuters.
• Feedgas intake into US LNG terminals has climbed to its highest daily level since April, according to Bloomberg.
• The two-year LNG supply deal signed between CNOOC and ADNOC for 12 cargoes across 2024-2025 was likely priced at a discount to JKM, according to Platts.
• Azerbaijan Expects to Export 12 Bcm to Europe in 2023, according to Platts, citing Azerbaijan’s deputy energy minister Samir Valiyev.
• Ice around the 3.9m mtpa Inkoo terminal in Finland is increasingly the difficulty to secure cargoes for the terminal, according to Argus.