US Natgas Holds Steady as Freeport LNG Supply Returns to Normal

US Henry Hub is trading just above yesterday’s close with support from the return of Freeport LNG supplies while EIA storage data yesterday showed a larger than expected build.

• US Natgas OCT 23 up 0.4% at 2.72$/mmbtu
• US Natgas MAR 24 down -0.6% at 3.29$/mmbtu
• US Natgas SEP 24 down -0.4% at 3.28$/mmbtu
• The latest EIA weekly gas inventories for the week ending 8 Sep showed an above expected build of +57bcf compared to a Bloomberg survey of a +50bcf build and the five-year average for this time of year of +69bcf. The surplus in total US inventories continues to trend slightly lower but stocks are still above the five year average at 3,205bcf compared to the average of 2,975bcf.
• Total natural gas delivery flows to US LNG export terminals are today estimated back up to 13.24cf/d according to Bloomberg. Feedgas intake at Freeport LNG has returned to near normal levels at 1.9bcf/d today after falling to around 0.3bcf/d for four days earlier this week.
• Domestic natural gas consumption is today estimated just above normal at 67.3bcf/d today having fallen from a peak of 77.2bcf/d last week. The latest NOAA weather forecast is relatively unchanged from yesterday with below normal temperatures in the west, but above normal temperatures still expected in central and eastern areas.
• US domestic natural gas production is today estimated relatively in line with output this week at 100.4bcf/d according to Bloomberg but down from an average of 102cf/d last month.
• Export flows to Mexico are today estimated at 7.4bcf/d.