US Natgas Steady Near Lowest Since June 2021

US Natgas holding steady near the lowest since June 21 with high production levels and no sign yet of a restart date for Freeport LNG exports.

• US Natgas FEB 23 up 0.3% at 3.32$/mmbtu
• Growing expectations that the Freeport LNG export facility will remain shut until February or later are weighing on prices with small recent gas flows to the terminal likely to be to maintain the flare system. Deliveries to LNG export terminals are today slightly higher at 12.54bcf/d due to higher supply to Sabine Pass.
• Domestic dry gas production is holding just below the record level seen last week with yesterday estimated at 102.1bcf/d. Production reached a high of 102.2bcf/d on 11 Jan compared to output around 95bcf/d this time last year.
• The latest weather forecast still shows below normal temperatures across most of the US in the 6-14 day period although the far east coast is holding on to near normal. Domestic demand is today estimated at 86.5bcf/d compared to the seasonal average of around 98bcf/d.
• Natural gas exports to Mexico are at the top of the five year range at around 6.6bcf/d.