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US Natgas Down Amid Lower LNG Flows and Strong Production

NATGAS

US Henry Hub is drifting lower driven by ongoing strong production and with a dip in supplies to US LNG export terminals. Global gas markets continue to watch for the impact of potential LNG strikes in Australia with TTF front month currently up nearly 8% on the day.

    • US Natgas SEP 23 down -2.3% at 2.57$/mmbtu
    • US Natgas FEB 24 down -1.1% at 3.81$/mmbtu
    • US Natgas AUG 24 down -1% at 3.39$/mmbtu
  • US domestic natural gas production remains strong and above levels seen last year with yesterday estimated up at 101.9bcf/d according to Bloomberg.
  • Gas flows to LNG export terminals are still below levels seen in August despite a small recovery today to 12bcf/d according to Bloomberg. Flows to Sabine Pass are today about 0.45bcf/d below the average seen in the last 30 days.
  • Domestic gas consumption is slightly down from yesterday to 75.7bcf/d according to Bloomberg but is still above the top end of the previous five year range for this time of year. Hot weather in the US Gulf is expected to continue throughout the current two week forecast to support cooling demand. Above normal temperatures are expected across the country except for the central and northern Atlantic Coast region.
  • Export flows to Mexico are still well above normal at 7.0bcf/d today.

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