Natural Gas End of Day Summary: Henry Hub Sinks Further

Henry Hub has continued its downtrend amid additional pressure from below-expectation storage draw. Front-month remains at a seven-month low.

• US Natgas MAR 24 down -1.4% at 1.59$/mmbtu
• The EIA weekly gas inventories for the week ending Feb 9 showed a draw of -49bcf compared to the expectation for a draw of -57bcf.
• Total stocks are at 2,535bcf compared to the five-year average of 2,187bcf.
• Domestic natural gas demand is slightly down on the day at 91.6bcf/d according to Bloomberg and still below the previous five year average.
• US lower 48 gas production is today around the lowest seen this month at 103.9bcf/d according to Bloomberg.
• Feedgas flows to US LNG export terminals are down again today at 13.4bcf/d with a drop in supply to Sabine Pass adding to the ongoing Freeport LNG train outage.
• US LNG developer Venture Global LNG asked federal regulators Feb. 15 to approve construction of its Calcasieu Pass 2 export plant at their meeting next month, according to Reuters.
• Kinder Morgan declared a force majeure on its in western Arizona impacting capacity the through Cadizsou constraint.
• South Korean LNG demand is forecast to be 3% lower on the year at 17.7mn tons this summer: BNEF.
• An extended US LNG project approval ban would have an impact on the fast-growing global market according to Steve Hill, who heads Shell's LNG, gas and power division.
• Europe will need to attract 5% more LNG than during summer 2023 to reach the same level of storage heading into the next winter heating season according Morgan Stanley.
• *HOUSE OVERTURNS BIDEN LNG EXPORT PAUSE, SENATE PASSAGE UNLIKELY - bbg