US Natgas Edges Higher after Freeport Approval

US Henry Hub front month is edging higher with a cooler weather forecast in the US and following the FERC approval for the restart of the remaining Freeport LNG liquefaction train.

• US Natgas APR 23 up 2.9% at 2.63$/mmbtu
• FERC's order said Freeport LNG can produce liquefied natural gas only up to the maximum authorized capacity of 782bcf/year, or 2.14bcf/day. Deliveries to the terminal are today at 0.73bcf/d according to Bloomberg. Total deliveries to the seven US LNG export terminals is today back up to 12.9bcf/d due to a recovery in flows to Sabine Pass LNG after falling to 12.2bcf/d in the last couple of days.
• The latest NOAA weather forecast shows below normal temperatures across most of the US in the 8-14 day period after a more mixed outlook for the coming week. Domestic demand is today estimated slightly above normal at 87.4bcf/d.
• Lower 48 dry gas production was around 100.4bcf/d yesterday compared to around 95bcf/d this time last year. Natural gas exports to Mexico are around 5.7bcf/d.
• The latest EIA weekly gas inventories for the week ending 24 Feb will be released this afternoon at 15:30GMT. The expectation is for a draw of -83bcf following on from the -81bcf draw last week. The 5-year average for this time of year is -107bcf.