Natural Gas End of Day Summary: Henry Hub Weakens

Henry Hub traded lower at US close amid reduced LNG feedgas flows and a likely further drop in demand as heating season winds down.

• US Natgas APR 24 down 2.8% at 1.71$/mmbtu
• US Natgas SEP 24 down 1% at 2.48$/mmbtu
• The EIA’s Short-Term Energy Outlook has forecast that Henry Hub spot prices will average $2.27/MMBtu in 2024, a downward revision from $2.65/Mmbtu in the February report.
• Total dry gas production in the US is forecast at 103.35m bcf/d in 2024, slightly below the 103.79 bcf/d in 2023. Production is 2025 will rise to 104.43 bcf/d.
• Total feedgas flows to US LNG export terminals are today estimated down at 12.9bcf/d according to Bloomberg.
• US domestic natural gas production was yesterday relatively unchanged at 101.2bcf/d according to Bloomberg.
• Lower 48 natural gas demand is today down 73.9bcf/d compared to the seasonal normal over around 81bcf/d.
• The US temperature forecast is showing a mixed picture with above normal temperatures expected on the east coast into the coming weekend.
• China’s state owned Unipec has asked US regulators for an opportunity to intervene in a request from Venture Global LNG to extend the commissioning period of its Louisiana project.
• Argentina’s state-owned Enarsa is delaying the award of its 10-cargo buy tender by one week, according to Bloomberg sources.
• ADNOC said it will make an FID on an LNG export plant this year, according to Bloomberg.
• Diversification of Japan’s LNG supply sources is likely to prove crucial for energy security with focus on long-term supplies from Australia and the US as existing contracts expire.