US Eases Back With Healthy Supplies and No Freeport Timing Clarity

US Natgas is pulling back slightly from yesterday’s rally with no further indication for the timing of the Freeport LNG terminal restart while demand remains low and production high.

• US Natgas MAR 23 down -2.1% at 2.51$/mmbtu
• Pipeline natural gas feedstock supplies to Freeport LNG have been gradually increasing this month up from just 0.02bcf/d at the end of Jan to around 0.52bcf/d today according to Bloomberg data. Total pipeline deliveries to US LNG export terminals are today estimated at 13.17bcf/d.
• The NOAA weather forecast remains stable with below normal in western and central areas but above normal temperatures expected in the east and Gulf Coast regions. Domestic demand has today fallen to 79.3bcf/d compared to the seasonal normal of around 95bcf/d.
• Lower 48 dry gas production remains strong although yesterday dipped slightly down to 100.8bcf/d.
• Natural gas exports to Mexico are unchanged this week around 6.7bcf/d.