Natural Gas End of Day Summary: Henry Hub Weakens

Henry Hub is extending its losses, erasing Friday’s gains. Prices are heading for their lowest close since Jan. 23 amid below normal demand and a recovery in production levels.

• US Natgas FEB 24 down -9.3% at 2.46$/mmbtu
• US Natgas JUL 24 down -3.9% at 2.52$/mmbtu
• US domestic gas production has returned to the approximate levels seen before the cold weather disruption earlier in January with yesterday estimated at 105.0bcf/d according to Bloomberg.
• Feedgas supply to US LNG export terminals is today at 14.3bcf/d with flows to Freeport still about 0.6bcf/d below levels seen in early January.
• Prices spiked Friday following a Houthi strike on an oil tanker which spiked energy prices.
• The Biden administration’s pause on new LNG export permit approvals could delay five planned projects totalling 62mtpa which already hold binding and non-binding supply deals.
• The 2024 global gas demand is forecast close to the average growth rate displayed during 2010-21 but only about half of that growth is structural - IEA analyst Greg Molnar.
• Weakening LNG spot prices are sparking buying interest for spot volumes as current prices approach parity with oil-indexed long-term pricing, according to Platts.
• Adnoc Gas has signed a 10-year supply agreement with India’s Gail to deliver around 0.5mtpa of LNG starting in 2026 according to Bloomberg.
• QatarEnergy has signed a deal with Excelerate Energy Inc to supply LNG to Bangladesh for 15 years according to Bloomberg.
• Construction of Russia's planned new Power of Siberia-2 gas pipeline to China could be delayed according to Mongolian Prime Minister L. Oyun-Erdene via FT.