US Natgas Falls as High Storage and Low LNG Flows Offset Cooler Forecast

Henry Hub has resumed the decline seen over the last week after a brief rally to a high of 1.823$/mmbtu yesterday. High storage and curtailed LNG feedgas flows are offsetting the lower domestic production volumes and cooler weather forecast for next week.

• US Natgas APR 24 down 2.4% at 1.67$/mmbtu
• US Natgas SEP 24 down 1.5% at 2.44$/mmbtu
• US Natgas MAR 25 down 1.2% at 3.15$/mmbtu
• Total feedgas flows to US LNG export terminals are today estimated at 12.9bcf/d according to Bloomberg. Net flows to Freeport remain near a third of capacity awaiting the return of train 3 from an outage since mid Jan while supply to Sabine Pass is also slightly below normal.
• Lower 48 natural gas demand is today relatively unchanged and still below normal at 73.0bcf/d. Below normal temperatures in central areas this week are expanding to the east coast into next week. The NOAA 6-10 day forecast shows below normal in the east and above normal in the west with both returning closer to normal in the 8-14 day period.
• US domestic natural gas production is today down again slightly to 100.2bcf/d according to Bloomberg compared to an average of 100.9bcf/d so far in March.
• Export flows to Mexico are today at 6.0bcf/d according to Bloomberg.