US Natgas Egdes Higher on Recovering LNG Export Flows

Henry Hub front month is edging higher today with domestic production and LNG export feedgas flows recovering after cold weather disruption last week. The cold resulted in a larger than expected draw in US gas storage according to EIA yesterday.

• US Natgas FEB 24 up 1.6% at 2.61$/mmbtu
• US Natgas JUL 24 up 0.7% at 2.63$/mmbtu
• US Natgas JAN 25 up 0.5% at 3.92$/mmbtu
• As markets expected, US President Joe Biden paused pending approvals of new LNG exports projects on Friday until the DOE has reviewed the economic and environmental impacts of new projects seeking approval.
• The EIA weekly gas inventories for the week ending Jan 19 showed a slightly larger than expected draw of -326bcf compared to the seasonal normal draw of -149bcf after the cold weather in the week. Despite the large draw the total US inventories of 2,856bcf remain above the previous five year average of 2,730bcf.
• Feedgas supplies to US LNG export terminals is today up to 14.2bcf/d with a recovery in supplies to Freeport and Calcasieu Pass.
• The slow recovery in US domestic dry gas production continues up to 103.3bcf/d today according to Bloomberg but is yet to fully recover to the pre cold weather disruption levels of around 105bcf/d.
• Lower 48 natural gas demand is again lower today to 85.7bcf/d according to Bloomberg and well below the seasonal normal of around 103bcf/d. The US weather forecast shows above normal temperatures for the coming week before drifint back towards normal in early Feb. NOAA shows below normal temperatures on the East Coast on the 8-14 day period but holds onto aboves elsewhere.
• Export flows to Mexico is today slightly higher at 6.42bcf/d.