CDN NEWS | 
US NEWS 
By Julian Hast
US natural gas futures ended higher as forecasts shifted to show hotter weather in the coming weeks, indicating higher demand for gas-fired power as consumers ramp up their air-conditioning use.
The largest Texas electric grid, the Electric Reliability Council of Texas, forecasts that peak power demand every day from Friday to Tuesday will exceed the all-time record set in July.
The heat, alongside new pipeline capacity in West Texas, has lifted day-ahead prices for the key Waha hub in the Permian region by reducing in-basin supply. Waha spot prices have averaged more than $2 per million British thermal units so far this week. However, increasing volumes of gas arriving in East Texas from the Permian pushes down the US benchmark Henry Hub in nearby southern Louisiana.
- Futures for September delivery settled +4c, or +1.5%, to $2.773/mmbtu on Nymex
Weather:
- Forecasts shifted hotter, with above-average temperatures expected across Texas, the Southwest and the Interior West through Sept. 4: Commodity Weather Group
Daily BNEF Gas Data:
- Lower-48 dry gas production on Friday ~113.3 bcf/day, or +4.5% y/y
- Lower-48 total gas demand on Friday ~80.8 bcf/day, or +2.6% y/y
- Dry gas exports to Mexico on Friday ~8.3 bcf/day, or +1.2% w/w
- Estimated gas flows to LNG export terminals on Friday ~17.7 bcf/day, or -2.7% w/w
Gas Market News:
- European Gas Gains for a Second Week as Iran Risks Cloud Outlook
- LNG WRAP: Asia Spot Prices Rise as Iran Peace Deal Still Elusive
- Natural Gas Deliveries to US LNG Export Terminals: BNEF
This story was produced with the assistance of Bloomberg Automation.
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