Natural Gas End of Day Summary: Henry Hub Rises

The Henry Hub Apr24 contract is extending its recovery from the low levels seen early last week amid a small uptick in demand and stable supplies.

• US Natgas APR 24 up 3.3% at 1.87$/mmbtu
• Lower 48 natural gas demand is estimated slightly higher on the day at 81.7bcf/d.
• Feedgas flows to US LNG export terminals are stable at 13.8bcf/d.
• US gas production was at in line with the average over the previous week at 102.5bcf/d yesterday.
• LNG stockpiles held by Japanese utilities rose by 3.35% on the week to 2.16mn tons.
• Global LNG demand will increase this year as Chinese buyers have returned to the market, while European demand is increasing, Total’s Senior VP of APAC E&P Thomas Maurisse said.
• Woodside Energy has signed an agreement with South Koreas’ Kogas to supply 0.5mtpa of LNG for the duration of 10.5 years starting in 2026.
• Gas imports to China are forecast to increase 8.2% to 179.1bcm in 2024.
• Asian LNG prices have fallen below long-term contract rates, which is likely to boost some spot buying activity of price sensitive buyers.
• Net injections into European gas storage could begin as early as March, according to ICIS.
• The EU’s latest tender to buy gas jointly has received offers from international firms to supply nearly three-times the volumes being sought for purchase.
• Russia is diverting its LNG shipments to China via the Cape of Good Hope, which is adding ten days of travel time to reach their destinations in China and to sail back to the Yamal LNG project according to Reuters.