Natural Gas End of Day Summary: Henry Hub Struggles for Direction

Henry Hub has struggled for direction today but is approaching US close trading higher. Support from recovering LNG export flows is weighing against weaker demand and milder weather.

• US Natgas JUN 24 up 0.2% at 2.2$/mmbtu
• US Natgas NOV 24 down 0.6% at 3.03$/mmbtu
• US domestic natural gas production was slightly lower yesterday at 99.8bcf/d according to Bloomberg.
• In the EIA’s Short Term Energy Outlook, both US dry natural gas production and consumption for 2024 were revised down by 0.6 bcf/d in 2024 to 103.0 bcf/d and 89.6 bcf/d respectively.
• US Henry Hub spot prices for 2024 have been revised up by 1.3% to $2.18/MMBtu, according to the EIA in its May Short Term Energy Outlook.
• US LNG export terminal feedgas flows are today estimated at 12.23bcf/d according to Bloomberg.
• Lower 48 natural gas demand remains relatively unchanged at 66.7bcf/d according to Bloomberg and still just above the seasonal five-year average.
• US Natgas Prices turned negative in Texas, Californina, and Arizona May 7, amid pipeline maintenance in the Permian Basin, Reuters said.
• Spot LNG prices in Asia are boosted by early summer heat in South and Southeast Asian countries.
• Gorgon LNG facility in Australia is delaying some shipments to Asian buyers because of an outage.
• Asian LNG importers are negotiating to reduce oil-linked price lopes on long-term LNG contracts, Platts said.
• The 170,000cbm Hoegh Galleon LNG FSRU has been transiting Southeast Asia in recent weeks as it heads towards Egypt.
• Natural gas transporter TGS is halting plans to build a small LNG plant to export Argentina’s growing shale production, Bloomberg said.