Natural Gas End of Day Summary: Henry Hub Rises

Henry Hub front month is heading for its highest close since Dec. 5, supported by a downward revision in temperature forecasts and a nearing contract expiry. Henry Hub has traded between $2.562-2.722/MMBtu during the day.

• US Natgas JAN 24 up 2.9% at 2.62$/mmbtu
• US Natgas JUN 24 up 1% at 2.48$/mmbtu
• Forecasts for Jan. 1-5 show colder weather in the Southern part of the USA, with normal temperatures in the Midwest.
• Feedgas supplies to US LNG terminals fell to 13.82bcf/d today, amid lower flows the Sabine Pass and Corpus Christi LNG terminals.
• Kinder Morgan reported on Tuesday that the KMI.N natural gas pipeline declared force majeure at the compressor station 348 that will impact deliveries to the Sabine Pass liquefaction facility.
• Natural gas demand is slightly up on the day but well below levels seen earlier this month at 85.61bcf/d to remain below the seasonal average according to Bloomberg.
• US natural gas production was yesterday steady at 105.7bcf/d according to Bloomberg.
• LNG stockpiles held by Japanese power generators declined by 6.04% on the week to 2.49 million tons as of 24 December according to data released by the trade ministry.
• Australia’s LNG exports are set to fall in 2024 as increasing regulatory bureaucracy thwarts attempts to offset field declines.
• The first train of Russia’s Arctic LNG 2 project has started production, Russian Deputy PM Alexander Novak said in an interview.
• Russia can successfully work amid sanctions on its LNG facility, Deputy PM Novak said, cited by TASS.
• Russia’s natural gas production in the first 11 months of 2023 declined by 8.5% on the year to 479 bcm, according to Rosstat cited by TASS.