Natural Gas End of Day Summary: Henry Hub Sinks

Henry Hub has fallen sharply as US close nears, furthering its losses on the day. Although the latest weekly EIA data showed a larger than expected draw in US natural gas inventories, it remained below the seasonal norm.

• US Natgas APR 24 down -1.2% at 1.86$/mmbtu
• The EIA weekly gas inventories for the week ending Feb 23 showed a draw of -96 compared to the expectation for a draw of -83bcf according to a Bloomberg survey and the seasonal normal draw of -173bcf.
• Total stocks are at 2,374bcf compared to the previous five year average of 1,876cf.
• Lower 48 natural gas demand is estimated higher again today up to 92.7bcf/d.
• Overall lower 48 temperatures are expected to increase above normal in the coming days before dipping back closer to normal in the second week of the outlook.
• Feedgas flows to US LNG export terminals are stable at 13.9bcf/d.
• US gas production was yesterday at 102.6bcf/d according to Bloomberg compared to an average over the previous week of 102.5bcf/d.
• New Fortress Energy expects to start LNG production at its first FLNG project off Altamira, Mexico in March and first cargo in April 2024 according to LNG Prime.
• Commonwealth LNG has delayed an FID on the six-liquefaction train 9.3mtpa LNG facility in Cameron, Louisiana.
• TotalEnergies signed a deal with Singapore’s Sembcorp Fuels for the delivery of up to 0.8mtpa of LNG for the duration of 16 years.
• Glencore has purchased an LNG cargo for 25-27 April delivery to Northeast Asia from Unipec via the MOC Window from S&P Global Commodity Insights, traders told Bloomberg.