Natural Gas End of Day Summary: Henry Hub Retreats

US Henry Hub is maintaining its losses during the day is being maintained following Friday’s surge to after surging a peak of 3.64$/mmbtu on Friday. Front month is now back to levels observed earlier last week amid warmer weather forecasts for the next few days.

• US Natgas DEC 23 down -4.1% at 3.34$/mmbtu
• US Natgas MAY 24 down -1.8% at 3.09$/mmbtu
• US natural gas demand is today estimated back above normal at 78.7bcf/d after dropping down to as low as 66bcf/d on 26 Oct.
• The cold weather expected in eastern regions in the coming days will return to normal or even slightly above by the end of the week. The latest NOAA two-week forecast suggests above normal temperatures for much of the country in the 6-14 day period.
• Domestic natural gas production was yesterday holding steady at 103.2bcf/d just above the average of 102.7bcf/d seen so far in October and compared to around 100bcf/d this time last year.
• Feedgas deliveries to US LNG export facilities are up to 14.4bcf/d today according to Bloomberg from around 13.7bcf/d last week due to an increase in supply to Sabine Pass LNG.
• Export flows to Mexico are today estimated at 6.4bcf/d.
• Workers at Chevron’s two LNG facilities in Australia have endorsed the new del on pay and conditions according to the Offshore Alliance.
• Global LNG capacity is set to expand by 250bcm/y by 2030 according to IEA after the limited supply growth between 2021 and 2024. Qatar and North America are forecast to account for over 80% of the capacity additions.
• Egyptian natural gas imports have halted on Sunday, the cabinet said, cited by Bloomberg, from 800mcf/d previously, leading to power cuts in the country.
• LNG deliveries to Europe and Turkey fell 5% last week to around 3bcm according to Kpler data. Supply could reach its highest in over five months with nearly 3.3bcm expected this week according to Montel.
• Energean’s 6.5bcm/yr Karish field in Israel resumed output on Friday after a short outage on Thursday night, a company spokesperson said, cited by Bloomberg.
• China’s Foran Energy Group is set to sign a 20-year SPA to buy 0.86m metric tons per annum of LNG from US supplier Cheniere according to Bloomberg.
• India’s largest gas import Petronet is not seeking additional LNG volumes as part of the renewal of its long-term LNG supply deal with Qatar, according to Reuters citing its head of finance V. K Mishra.