US Natgas Higher on Cooler Forecast Despite Possible Freeport Delay

US Natgas regains ground as the forecast of cooler weather spreads across the country during the coming two weeks.

• US Natgas FEB 23 up 3.4% at 3.8$/mmbtu
• Upside moves remain limited due to the expectation that the return of Freeport LNG exports will be delayed further. The restart of the Freeport LNG terminal is expected to further extend until February, from the previous target of the end of January, according to Reuters sources as it awaits regulatory approvals.
• EIA stocks data due for release later today is expected to show a small draw of -11bcf following on from the large -221bcf draw last week due to the shift from cold in late December to the warm start to January. The 5-year average for this time of year is -155bcf.
• Domestic natural gas demand is today estimated below normal at 85.72bcf/d with production yesterday showing another new high at 102.43bcf/d.
• Deliveries to US LNG export terminals are today slightly higher at 12.3bcf/d while exports to Mexico are high at 6.85bcf/d.