Natural Gas End of Day Summary: Henry Hub Rebounds

Henry Hub has rebounded from the low of 1.646$/mmbtu on March 15 and reversed much of the previous day’s losses. Upside comes from forecasts for colder weather across the US towards the end of March.

• US Natgas APR 24 up 3.6% at 1.72$/mmbtu
• US shale gas output is expected to decline by 167mmcf/d on the month to 100.452bcf/d in April, according to the EIA Drilling Productivity Report.
• Lower 48 natural gas demand has risen back above normal up to 85.1bcf/d compared to levels down as low as 69.4bcf/d last week.
• US domestic natural gas production is today relatively stable and estimated at 100.3bcf/d according to Bloomberg.
• Total feedgas flows to US LNG export terminals are today up to 13.35bcf/d according to Bloomberg but remain below normal.
• Venture Global is purchasing nine LNG carriers with the first two ships expected to be delivered in June, the firm’s CEO Mike Sabel said.
• Freeport LNG export terminal’s train 1 was briefly offline, according to a filing by the Texas Commission on Environmental Quality, cited by Bloomberg.
• Adnoc has signed an agreement with SEFE to deliver 1mtpa of LNG for the duration of 15 year according to a statement.
• Glenfarne has signed a Head of Agreement with Gunvor to supply 0.5mtpa of LNG from the Texas LNG project for the duration of 20 years, according to Businesswire.
• Shell’s CEO Wael Sawan is not worried about a glut of LNG as there is a lot of latent demand in the market, he said during CERA week.
• Gas exports from the US to Mexico are expected to rise from 5.97bcf/d in 2023 to a record average of 6.09bcf/d in 2024, according to BNEF.