Natural Gas End of Day Summary: Henry hub Rises

Henry Hub has risen on the day, although has eased back from its intraday highs. Mixed weather forecasts and a dip in production during February have added some support, although this remains capped by high storage levels and curtailed LNG exports.

• US Natgas MAR 24 up 3.2% at 1.65$/mmbtu
• US gas production is today estimated at 102.5bcf/d.
• Feedgas flows to US LNG export terminals are today at 13.93bcf/d according to Bloomberg.
• Lower 48 natural gas demand is estimated down at the lowest since late December at 78.2bcf/d according to Bloomberg and near the lower end of the previous five year range.
• The latest weather forecast shows above normal temperatures moving eastwards across the country this week to be replaced by colder weather in the west.
• The amount of Qatari LNG shipped on FOB terms rather than delivered has risen, according to Qatar’s Energy Minister Saad Al-Kaabi, cited by Bloomberg.
• Qatar announced a new 16mtpa LNG project before 2030, lifting the country’s annual production capacity to 142mn tons by 2030.
• Qatar’s latest announcement to further increase LNG export capacity is expected to lead to LNG oversupply, pushing down global gas prices and potentially leading to the cancellation of US LNG exports, Goldman Sachs said.
• China’s LNG import capacity could increase by a third in 2024 due to increased domestic investment in LNG infrastructure according to Oilchem.
• The first LNG exports from BP’s 2.5mtpa Tortue LNG project offshore Mauritania and Senegal have been further to delayed to 4Q.