US Gas Continues to Fall After LNG Terminal Fire

US Natgas down about 15% since an explosion caused a fire at the Freeport LNG terminal

• US gas down 6.3% today to 8.15$/mmbtu from a peak of 9.619$/mmbtu yesterday. The duration of the outage has been reported as at least 3 weeks. The export terminal has a total capacity of 2bcf/d which covers approximately 16% of US LNG exports. Flows to US export terminals have averaged 12.4bcf/d over the last week. Initial indications are that one of the three storage facilities on the site have been affected.
• Freeport LNG issued a force majeure to buyers with shipments scheduled in June and informed customers that the outage will last until at least 30^th June.
• The EIA weekly gas inventory data for the week ending 3^rd June is due for release this afternoon. The expectation is for a build of 98bcf compared to a 90bcf build last week and a seasonal normal build of 103bcf. Total storage is currently 1,902bcf which is 15% below the seasonal average.
• US production is slightly down at 95bcf/d today with strong weather driven demand at 63.9bcf/d.