NATGAS: Natural Gas End of Day Summary: Henry Hub Sells Off

Henry Hub has dropped by around 5% on the day despite blizzard conditions hitting the USGC. The sell-off comes as production appears not to have been hampered as much as first feared, with expectations of a swift rebound. Furthermore, weather forecasts point to rising temperatures next week.

• US Natgas FEB 25 down 4.6% at 3.77$/mmbtu
• US Natgas MAR 25 down 3.6% at 3.35$/mmbtu
• President Donald Trump issued an order on Monday for the U.S. to resume processing export permit applications for new LNG projects. This has boosted optimism for more stable supply among Asian LNG importers.
• Lower 48 natural gas demand is 136.75bcf/d today, according to Bloomberg.
• Reuters reported that US natgas demand could hit a new daily record of 172.2 bcf/d today
• lower 48 temperatures are forecast to gradually recover back to near normal into next week.
• US domestic natural gas production is estimated down to 101.4bcf/d yesterday, according to Bloomberg.
• US LNG export terminal feedgas has fallen to 13.07bcf/d today, according to Bloomberg.
• Freeport LNG is to remain offline until power conditions stabilise, according to Bloomberg
• The quantity of LNG on tankers that have not unloaded for at least 20 days was up to 3.54m mt as of Jan. 20.
• Pilot services for vessels travelling through to Lake Charles, Louisiana, remains halted through at least Jan. 22: Moran
• US natural gas storage likely saw a slightly above-average build of 240 bcf in the week to Jan. 10: Reuters survey.
• China’s gas demand is forecast to rise 6.2% y/y to 448.5bcm in 2025: CNPC.
• European LNG prices have fallen relative to pipeline gas prices due to healthy cargo volumes reaching Europe, Platts said.
• Argentina’s YPF signed an MoU with Indian energy companies to export up to 10m mtpa of LNG.