Natural Gas Futures Flounder Following Stout Storage Print - Natural Gas Intelligence
Natural Gas Futures Flounder Following Stout Storage Print - Natural Gas Intelligence
The U.S. Energy Information Administration (EIA) on Thursday printed a 95 Bcf increase in natural gas storage for the week ended June 16. The result exceeded market expectations and historical averages, pressuring Nymex natural gas futures.
Ahead of the 10:30 a.m. ET government report, the July futures contract was trading in a narrow range of gains and losses. About 15 minutes before the federal data crossed the wires, it was up a half-cent at $2.602/MMBtu.
The prompt month fell to $2.581 when the EIA assessment was released. After a half-hour of post-report trading, it was down 3.6 cents to $ 2.561.
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Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.