Natural Gas End of Day Summary: Henry Hub Tumbles

Henry Hub has fallen to its lowest level since March 1 as last week’s US stock draw came in well below the seasonal norm. Below average demand and curtailed LNG feedgas flows provide further pressure.

• US Natgas APR 24 down -4% at 1.85$/mmbtu
• US Natgas SEP 24 down -1.9% at 2.54$/mmbtu
• The EIA weekly gas inventories for the week ending 1 March showed a draw of -40bcf compared to the expectation for a draw of -37bcf according to a Bloomberg survey and the seasonal normal draw of -139bcf.
• Total stocks are at 2,334bcf compared to the previous five-year average of 1,783cf.
• US domestic natural gas production is at 99.6bcf/d today and in line with output seen this time last year according to Bloomberg.
• Lower 48 natural gas demand is at 79.0bcf/d today to remain just below the previous seasonal five-year average.
• Feedgas flows to US LNG export terminals are still curtailed today at about 13.7bcf/d according to Bloomberg.
• Abu Dhabi National Oil Co. is aiming to reach a final investment decision on the new Ruwais LNG project in the first half of 2024 according to Bloomberg sources.
• Chinese natural gas imports – including piped gas and LNG – climbed by 23.6% on the year to 22.10mn tons in January February, customs data showed, marking the highest year-to-date on record.
• Attempts by environmental groups to delay the Rio Grande LNG export terminal and the Rio Bravo natural gas pipeline have been dismissed by a federal appeals court according to Gelber & Associates.