June 06, 2024 18:01 GMT
US Natgas Longer-Term Outlook Remains Positive: BNEF
NATGAS
Robust secular growth and seasonal weather should support rising US natural gas demand and prices, according to BNEF.
- Flows to Mexico, coupled with industrial consumption and LNG feedgas flows will be supportive over the longer term.
- While there are limits to the demand growth in the residential and commercial sectors, vehicle electrification and power needs linked with AI data centres are key driver for additional consumption.
- Henry Hub prices in the low $2/MMBtu range appear unsustainable, but sub 99 bcf/d production levels could help balance the market and counter softer prices.
- Summer cooling demand season should also add upside and could contribute to pushing Henry Hub above $3.50/MMBtu before heating season starts in November, BNEF said.
Source: Bloomberg
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