US Extends Decline; Approval for First Freeport LNG Train

US Natgas is extending the recent declining trend to trade below 2$/mmbtu earlier today and the lowest since September 2020.

• US Natgas MAR 23 down -2.6% at 2.02$/mmbtu
• The move comes despite the regulatory approval for Freeport to return the first of three liquefaction trains to service. The full restart of a second train and return to service of the third liquefaction train following further approvals are expected to take several weeks.
• Several ships are waiting outside the US Freeport LNG facility and pipeline feedstock natural gas deliveries to the terminal are estimated at approximately 0.45bcf/d this week. Once fully operational feedstock flows are expected to return to around 2.1bcf/d seen before the fire last June. Total deliveries to US export terminals are today at 12.8bcf/d.
• US natural gas production was yesterday holding steady at 101.1bcf/d compared levels around 95bcf/d last year according to Bloomberg data.
• The latest NOAA two week outlook remains unchanged with cold weather expected in western areas but above normal in the Gulf Coast region extending into eastern areas in the 8-14 day period. Domestic demand is today estimated just below normal at 85.6bcf/d.