Natural Gas End of Day Summary: Henry Hub Ticks Up

Henry Hub front month has traded higher on the day, rebounding slightly from yesterday when it hit its lowest level since May. However, upside is limited by below normal demand, strong domestic production, and curtailed Freeport LNG exports.

• US Natgas MAR 24 up 1.2% at 2.1$/mmbtu
• US Natgas AUG 24 down -0.1% at 2.6$/mmbtu
• Lower 48 natural gas demand is relatively unchanged on the day at 94.4bcf/d according to Bloomberg to remain below the seasonal normal for the time of year.
• The US weather forecast is also unchanged with lower 48 temperatures general holding above normal in the coming two weeks. The NOAA forecast shows below normal in the west and above normal in the east in the 8-14 day period.
• US domestic gas production was yesterday estimated at 104.8bcf/d according to Bloomberg.
• Feedgas supply to US LNG export terminals are today steady at 14.1bcf/d with flows curtailed by the outage to one Freeport liquefaction unit.
• LNG stockpiles held by Japanese utilities declined by 13.3% to 2.16mn tons last week as of 28 January, the lowest level since October.
• The spot volume share in global LNG imports averaged 24% last year, up from 22% in 2022 according to BNEF.
• Grain LNG and Sonatrach signed a ten-year agreement to extend the Algerian company's long-term storage and redelivery capacity at the Grain LNG import terminal beyond January 2029, the UK firm said, cited by Reuters.
• US LNG exports in January stood to 8.56mn tons, just around 3% below December record-high levels, according to Platts.
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