Natural Gas End of Day Summary: Henry Hub Slides

US Henry Hub front month has traded lower on the day and is set to fall around 1.8% from the start of the week driven by a gas storage surplus, strong domestic production, a dip in LNG export flows and near normal weather.

• US Natgas NOV 23 down -1.9% at 2.9$/mmbtu
• US Natgas APR 24 down -0.5% at 3.04$/mmbtu
• The latest EIA weekly gas inventories for the week ending 13 Oct showed a larger than expected build of +97bcf compared to the five-year average for this time of year of +85bcf. The total US inventories remain above normal at 3,626bcf compared to the average of 3,429bcf.
• US domestic natural gas production was yesterday stable at 103.1bcf/d according to Bloomberg compared to the average so far this month at 102.1bcf/d.
• Natural gas deliveries to US LNG export facilities are today at 14.0bcf/d according to Bloomberg with supplies down from the high of 14.6bcf/d on 17 Oct.
• Lower 48 dry gas demand is holding near the five-year average for the time of year at 67.2bcf/d today according to Bloomberg.
• Warmer than normal temperatures are expected in northern parts of the US according to the annual Winter Outlook from NOAA which could reduce heating demand and weigh on natural gas prices this winter.
• Egypt so far this month exported just two LNG cargoes, ship-tracking data showed, supporting concerns that the restart of Egyptian LNG flows might be hampered by lower gas pipeline supplies from Israel due to due closure of the 10bcm/yr Tamar gas field and the EMG gas pipeline.
• The agreement between China’s CNPC and Gazprom for additional gas pipeline imports for the remainder of this year through the Power of Siberia 1 pipeline could free some global LNG cargoes for the remainder of this year according to BNEF.
• Natural gas production in Azerbaijan is projected to be 48.7 bcm in 2023, according to Interfax reporting comments from Azeri Energy Minister Parviz Shahbazov.
• The total demand for Azeri gas into Europe is exceeding 30 bcm/y, according to Interfax, citing comments from Azerbaijani Energy Minister Parviz Shahbazov.
• Finland’s FSRU at Inkoo is offering six regasification slots this winter, according to a statement by operator Gasgrid.
• Finland is investigating the role of a Hong Kong vessel in the damage to an underwater gas pipeline earlier this month as a heavy object was found, the Finnish police said, cited by Bloomberg.
• The start of exports from Indonesia’s Tangguh train 3 LNG project will mean global winter supply of LNG could increase by 12% compared to 2022, according to BNEF.