Natural Gas End of Day Summary: Henry Hub Rises Before Expiry

US Henry Hub is surging after hitting a low of around 2.55$/mmbtu yesterday as feedgas flows to US LNG export terminals have recovered slightly, boosted by a rise in Sabine Pass’ intake.

• US Natgas OCT 23 up 4.2% at 2.77$/mmbtu
• US Natgas MAR 24 up 1.4% at 3.21$/mmbtu
• Today’s contract expiry of the October Henry Hub contact is also driving some volatility, according to Bloomberg, as contract volumes shift to the November futures.
• Feedgas levels at Sabine Pass, the largest US LNG liquefaction terminal, have rebounded to normal levels following several days of reduced intake. Flows to Corpus Christi are however still about 0.6bcf/d below normal and Cove Point is halted for maintenance. Total natural gas delivery flows to US LNG export terminals are today estimated at 12.0bcf/d.
• Domestic natural gas consumption is relatively unchanged on the day at around 68.3bcf/d with no change in the mixed weather forecast for the coming fortnight. Central and eastern areas are showing above normal throughout the forecast while the west holds onto below normal temperature.
• US domestic natural gas production was yesterday back down to 101.1cf/d compared to just over 102bcf/d the previous day.
• Export flows to Mexico are today estimated high at 7.1bcf/d.
• Surging tender activity and low Japanese LNG inventories could hint at a winter demand spike in Asia, which would keep APAC as the premium market and leave JKM at a premium over TTF, Kpler said.
• LNG stockpiles held by Japanese utilities fell by 1.89% on the week to 1.56mn tons as of 24 September.
• Russia’s gas production climbed to 47.7 bcm in August, up from 46.3 bcm in the same month in 2022, according to the Federal Statistics Service.
• TOTAL AIMS TO RESTART MOZAMBIQUE LNG PROJECT BEFORE YR-END: CEO -bbg
• A number of LNG tankers are waiting off the coast of Europe for higher prices later in the winter for new destinations, as LNG on water continues to rise according to ICIS.
• MNI COMMODITY WEEKLY: Russian Oil Product Ban Adds to Market Tightness – Full piece here: https://enews.marketnews.com/ct/x/pjJscQCLlLgI6ag2Jh8nGQ~k1zZ8KXr-kA8x6nHWZXwptIPjO1OcQ