US Edges Lower on Warmer Forecast and Possible Freeport Delay

US Natgas pulling back with warmer temperatures forecast after the current cold spell and with no sign of the restart of Freeport LNG.

• US Natgas DEC 22 down -3.9% at 6.12$/mmbtu
• Weather forecasts show cold weather for much of the country over the coming days before warming during next week. Below normal temperatures are forecast to persist on the East coast with the rest of the country returning back above normal in the 6-14 day period. Current demand is today estimated above normal up at 100bcf/d.
• Deliveries to LNG export terminals are today estimated at 12.2bcfd/ with natural gas production stable around 100.3bcf/d. A delayed restart of Freeport LNG is “highly possible” according to Osaka Gas President Masataka Fujiwara.
• EIA inventory data yesterday showed another above normal build of +64bcf compared to an expectation of a +63bcf build and the 5-year average for this time of year of +8bcf. Total US stocks are almost up to the five year average at 3,644bcf due to recent high production and reduced LNG exports.