Natural Gas End of Day Summary: Henry Hub Weakens

Henry Hub reversed its earlier gains to trade lower, despite a larger than expected draw in US stockpiles, as inventories continue to remain above the five-year average.

• US Natgas FEB 24 down -1.8% at 2.59$/mmbtu
• Front month has reversed direction from a high of $2.883/MMBtu on the day. Lower LNG export feedgas, rising output and milder temperatures will add downside.
• The EIA weekly gas inventories for the week ending Jan 19 showed a draw of -326bcf compared to the expectation for a draw of -319bcf according to a Bloomberg survey and the seasonal normal draw of -149bcf.
• Feedgas supplies to US LNG export terminals fell back down to 13.1bcf/d yesterday after seeing a recovery up to 14.1bcf/d on Jan 23.
• Freeport’s LNG train 2 restarted Jan. 24 after tripping offline, according to a filing to the Texas Commission on Environmental Quality, cited by Bloomberg.
• Lower 48 natural gas demand is again lower today to 89.3bcf/d according to Bloomberg and the lowest since Dec 27.
• The Biden administration intends to announce its strategy on Jan. 26 for increasing environmental scrutiny of LNG export applications, according to Bloomberg, citing sources.
• QatarEnergy’s Al Khor LNG vessel is headed for Barcelona and is currently signaling to cross the Suez Canal,
• LNG freight continues to move lower despite ongoing Red Sea shipping disruptions, Goldman Sachs said in a note.
• The first cargo of LNG from the Arctic LNG 2 Facility may be shipped in February, Russia’s Deputy PM Alexander Novak said, cited by Interfax.