Natural Gas End of Day Summary: Henry Hub Set for Gains

Henry Hub is headed towards US close trading higher, supported by optimism around a resumption in LNG feedgas flows to Freeport LNG.

• US Natgas MAY 24 up 1.5% at 1.78$/mmbtu
• US Natgas OCT 24 up 1.5% at 2.57$/mmbtu
• Feedgas flow to US LNG export terminals are estimated back up to 12.0bcf/d today according to Bloomberg from a low of 9.2bcf/d on April 20.
• Freeport LNG feedgas flows are today estimated back up to 0.62bcf/d and the first LNG tanker in 11 days arrived at the terminal on Saturday according to LSEG.
• US domestic natural gas production was steady at 99.15bcf/d yesterday according to Bloomberg compared an average of 98.9bcf/d in the previous week.
• Natural gas demand has been holding above the previous five year average since April 18 and today steady at 71.3bcf/d according to Bloomberg.
• The NOAA 6-14 day outlook is relatively unchanged with slightly below normal expected on the west coast but above normal temperatures expected throughout the remainder of the country.
• Gas storage in ‘Europe Perimeter’ (Northwest Europe, Italy and Austria) is expected to hit ‘tank tops’ at the end of September, two weeks earlier than previously forecast: BNEF.
• TotalEnergies has signed a 10-year sale and purchase agreement with Oman LNG to offtake 0.8mtpa of LNG starting 2025.
• Egypt exported the first LNG cargo since mid-March despite rising concern for a lack of domestic supplies into the hot summer period.