US Henry Hub Pressured by Warmer Weather and Plentiful Supply

Warmer weather forecasts and high storage levels have pressured US Henry Hub prices this week. Volumes have been thin on the Thanksgiving holiday.

• The NOAA forecast shows below normal until the end of the month moving back above normal across the US into December for the 8-14 day period.
• Most of the US is seeing warmer forecasts for Nov. 29 to Dec. 3, with a faster re-warming for the eastern half of the US than previously expected according to the Commodity Weather Group.
• Shell’s 3.6mtpa Prelude facility in Australia looks set to restart soon according to ICIS with the LNG vessel Symphonic Breeze now near Japan signalling an arrival there on 6 December.
• “Qatar has had some work recently on Qatargas II train 5, a 7.8mtpa facility. That was expected to end around 20 November after a month of work. With Egypt also making a return to the market with the recent loading of the Adam LNG from Idku, it looks like production could be picking up a little in time for winter.” ICIS analysts said, further supportive of global gas supply.