Natural Gas End of Day Summary: Henry Hub Rangebound

Henry Hub moved to rangebound territory as US close approached, regaining its losses earlier in the day due to an unexpected US inventory build.

• US Natgas JAN 24 up 0.1% at 2.81$/mmbtu
• US Natgas JUN 24 down -0.1% at 2.8$/mmbtu
• The EIA weekly gas inventories for the week ending 24 Nov showed a net build of +10bcf compared to the expectation for a draw of -5bcf according to a Bloomberg survey and the seasonal normal draw of -41bcf.
• The total US inventories remain well above season normal levels at 3,836bcf compared to the average of 3,542bcf.
• Feedgas flows to the Sabine Pass LNG terminal, the largest in the USA, have fallen for the second time in a week, with the drop indicating at least one train could be down, according to Bloomberg.
• US lower 48 natural gas demand has today declined again to 91.4bcf/d according to Bloomberg from the peak of 107.8bcf/d on Nov 28.
• Domestic natural gas production was yesterday around 105.1bcf/d compared to the record high of 106.5bcf/d on Nov 27.
• Europe needs additional LNG to ease the gas market as the continent moves on from the 2022 gas crisis, its CEO Michael Lewis told Bloomberg.
• The LNG sector is seeing cost inflation across the entire value chain according to Jonty Shepard at BP at the World LNG Summit. Cost inflation is seen in liquefaction, shipping and spending on decarbonization and reducing methane leaks.
• Growing demand for LNG is expected to drive the global fleet of LNG vessels up by around 50% to almost 1,000 by 2025 according to shipping giant Angelicoussis Group via Montel.