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Tighter US Gas in 2024 on Slowing Production Growth

NATGAS

Winter weather is the primary driver of seasonal consumption of natural gas in US but slowing production growth on fewer drilling rigs and completion crews are helping to tighten fundamentals in 2024 according to Bloomberg.

  • Pipeline exports and seaborne LNG are structural drivers aiding balances but European storage levels above 90% full are a risk if the heating season disappoints across the Atlantic.
  • Cooler weather is required to boost US domestic gas consumption in the power stack, which is gaining share relative to coal.
  • Growth of alternative and renewables capacity is a broader risk to gas demand.

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