Natural Gas End of Day Summary: Henry Hub Returns to Positive

Henry Hub has been volatile once again but will likely finish the day in positive territory. After initially climbing to $2.978/MMBtu, prices dropped and bottomed out at $2.908/MMBtu before trending upwards. Weighing on prices has been high storage levels against falling temperatures and robust LNG feedgas.

• US Natgas NOV 23 up 1.2% at 2.96$/mmbtu
• US Natgas APR 24 up 0.2% at 3.04$/mmbtu
• The US natural gas storage inventory injections for week ending 20 Oct due for release later this week are projected in the range of 80-85bcf according to Platts gas supply-demand and storage models. This compares with a five-year-average build of 66bcf for that week.
• Domestic natural gas production was yesterday still up almost at the record high from the previous day at 104.05bcf/d compared to output of around 101bcf/d at the start of October.
• US natural gas demand is estimated lower today and back just below the five year average at 68.0bcf/d today according to Bloomberg.
• The latest forecast is relatively unchanged with warm weather in the coming week giving way to below normal temperatures across most country in the 6-10 day period except for the East Coast.
• Feedgas deliveries to US LNG export facilities are similar to yesterday at 13.8bcf/d today according to Bloomberg compared to an average of 13.5bcf/d so far this month and 11.4bcf/d in Oct 2022.
• Wires carrying comments from the Finnish police, states that a "foreign object was lifted from the sea this morning...object found near broken Baltic Sea pipeline has been identified as an anchor...one of the anchor's two spikes is missing...We found out that one of the [Hong Kong registered] Newnew Polar Bear container vessel's front anchors was missing....We are still investigating whether the damage was deliberate.”
• Construction of the Soyuz-Vostok pipeline - the Mongolian portion of the Power of Siberia 2 pipeline - could begin in Q1 2024, Russian Deputy PM Victoria Abramchenko told TASS.
• Starting in 2025, supply for LNG is set to increase as a wave of new projects come online, adding 250 bcm/y by 2030, according to the IEA’s World Energy Outlook 2023.
• Global weekly LNG imports last week stood at 7.2mn tons for 16-22 October, down by 6% week on week, driven by a decline in volumes to China according to BNEF.
• Imports of LNG into China in September fell to 5.69m mt, down 9.7% on the month, according to OilChem citing General Administration of Customs of China (GACC) data.
• The total estimated quantity of LNG on tankers that have not unloaded for at least 20 days increased 5.8% over the last week to 4.74mn tons as of 22 October, according to Bloomberg estimates.
• The LNG Rosenrot vessel is heading to Germany after nine weeks of waiting off the coast of Spain with a US Freeport cargo according to ICIS ship tracking.
• Singapore aims to bring a second LNG terminal online by the end of the decade, according to Bloomberg.