US Natural Gas Futures Dip on Lower Flows to LNG Export Plants
By Julian Hast
US natural gas futures ended lower as domestic gas flows to liquefied natural gas export terminals along the US Gulf Coast dropped for a third consecutive day. The reduction is concentrated at Sabine Pass LNG in Louisiana and Corpus Christi LNG in Texas.
Lower gas flows to terminals leaves more supplies in the US ahead of an expected uptick in gas-fired power demand as consumers ramp up air-conditioners in the summer. Domestic stockpiles are already more than 6% above the five-year average.
At the same time, LNG-related losses could be constrained as “pipeline maintenance limited to the short term may allow intake to rebound,” said Eli Rubin, senior energy analyst at EBW Analytics Group.
- Futures for July delivery settled -1.2c, or -0.4%, to $3.167/mmbtu on Nymex
Weather:
- Forecasts were unchanged, with above-average temperatures expected across the Midwest and interior West through June 11: Commodity Weather Group
- See WHUT for a map of latest 6-10 day weather forecast: NOAA
Daily BNEF Gas Data:
- Lower-48 dry gas production on Tuesday ~109.1 bcf/day, or +1.9% y/y
- Lower-48 total gas demand on Tuesday ~69.4 bcf/day, or +4.8% y/y
- Dry gas exports to Mexico on Tuesday ~8.0 bcf/day, or +1.3% w/w
- Estimated gas flows to LNG export terminals on Tuesday ~16.6 bcf/day, or -8.7% w/w
Gas Market News:
This story was produced with the assistance of Bloomberg Automation.
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