Natural Gas End of Day Summary: Henry Hub Surges

Henry Hub has surged late in the day as reports of Yemen’s Houthis hitting an oil tanker in the Gulf of Aden sparked wider supply concerns across the energy complex. Henry Hub had previously lost ground after Freeport said one of its liquefaction units would be offline.

• US Natgas FEB 24 up 4.2% at 2.68$/mmbtu
• US Natgas JUL 24 up 0.5% at 2.62$/mmbtu
• Freeport LNG expects one of its three liquefaction units at the export facility to be out of service for one month after it had faced technical issues during the winter storm Heather earlier this month according to Reuters, citing a company spokesperson.
• Freeport LNG cancelled six cargoes due to the outage of the Freeport Train 3 liquefaction unit, according to people with knowledge of the plant.
• The Biden administration’s decision to pause approvals of new LNG export permits will not have a short-term or medium-term impact on EU supply security, according to Platts citing the European Commission.
• A German court said that work to complete a Baltic Sea pipeline can proceed while awaiting the outcome of the ongoing case, provisionally clearing the opening of the Mukran LNG terminal this winter, according to Bloomberg.
• The EU is eyeing to rule out a renewal of Russian natural gas transits via Ukraine to Europe once the deal expires are the end of 2024.
• Mild temperatures and sustained high stock levels among Asian utilities are clouding the post-winter market outlook for Asian LNG, according to Platts.
• The Japan Organization for Metals and Energy Security (JOGMEC) is planning to give financial support to Japanese companies for new LNG projects.
• Indonesia may issue LNG import licenses as the country is expected to face a shortfall of around ten LNG cargoes in 2024.