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US Natural Gas Futures Dip on Lower Flows to LNG Export Plants


These translations are done via Google Translate

By Julian Hast

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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.


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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.

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  • 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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