Adds latest prices

By Scott DiSavino

Feb 28 (Reuters) - U.S. natural gas futures slid about 3% to a two-week low on Friday on record output and forecasts for milder weather over the next two weeks that should keep heating demand low, allowing utilities to pull less gas out of storage through at least mid-March.

Extreme cold so far this year, however, has forced energy firms to pull massive amounts of gas out of storage, including record amounts in January, cutting stockpiles to around 12% below the five-year (2020-2024) normal. EIA/GAS NGAS/POLL

Front-month gas futures NGc1 for April delivery on the New York Mercantile Exchange fell 10.0 cents, or 2.5%, to settle at $3.834 per million British thermal units (mmBtu), their lowest close since February 14. The price decline came despite record gas flows to liquefied natural gas export plants.

For the week, the front-month was down about 9% after rising around 39% during the prior three weeks.

For the month, the contract was up about 26% after falling about 16% in January.

SUPPLY AND DEMAND

Financial company LSEG said average gas output in the Lower 48 U.S. states rose to 104.7 billion cubic feet per day (bcfd) so far in February from 102.7 bcfd in January, when freezing oil and gas wells and pipes, known as freeze-offs, cut production. That compares with a monthly record of 104.6 bcfd in December 2023.

Over the last few weeks, output dropped from a record daily high of 106.7 bcfd on February 6 to a three-week low of 100.5 bcfd on February 19 as extreme cold froze wells before rising to a three-week high of 106.3 bcfd on February 28 as milder weather unfroze those wells.

Meteorologists projected weather in the Lower 48 states would remain mostly warmer than normal through March 15.

With milder weather coming, LSEG forecast average gas demand in the Lower 48 states, including exports, will fall from 125.7 bcfd this week to 117.7 bcfd next week and 114.0 bcfd in two weeks.

The amount of gas flowing to the eight big U.S. LNG export plants rose to an average of 15.6 bcfd so far in February, up from 14.6 bcfd in January. That compares with a monthly record high of 14.7 bcfd in December 2023.

The LNG feedgas increase mostly came as gas flows to Venture Global's VG.N 3.2-bcfd Plaquemines LNG export plant under construction in Louisiana hit a record high of 1.8 bcfd on Wednesday and Thursday.

The U.S. became the world's biggest LNG supplier in 2023, surpassing Australia and Qatar, as surging global prices fed demand for more exports, due partly to supply disruptions and sanctions linked to Russia's 2022 invasion of Ukraine.

Gas was trading around $14 per mmBtu at both the Dutch Title Transfer Facility (TTF) TRNLTTFMc1 benchmark in Europe and the Japan Korea Marker (JKM) JKMc1 benchmark in Asia. NG/EU

(Reporting by Scott DiSavino; Editing by Nick Zieminski and Leslie Adler)

((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))

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For next-day SNL U.S. gas prices, see: 0#SNL-NG

For next-day SNL U.S. power prices, see: 0#SNL-PWR

For U.S. natgas price and storage polls, see: NGAS/POLL

For U.S. nuclear power outages, see: NUKE/

For U.S. Northwest hydro power report, see: NWRFC

For U.S./Canada natural gas rig count vs Henry Hub futures price, see: http://tmsnrt.rs/2eT9k44

For the U.S. natural gas speed guide, see: USGAS

For the U.S. power speed guide, see: USPOWER

To determine CFTC managed money net position add (NYMEX Henry Hub options and futures combined 3023651MNET) plus (ICE Henry Hub options and futures combined 3023391MNET divided by four) plus (NYMEX Henry Hub swaps options and futures combined 303565BMNET divided by four) plus (NYMEX Henry Hub penultimate gas swaps 303565CMNET divided by four)

NYMEX Henry Hub options and futures combined 0#3CFTC023651

NYMEX Henry Hub futures only 0#1CFTC023651

ICE Henry Hub options and futures combined 0#3CFTC023391

NYMEX Henry Hub swaps options and futures combined 0#3CFTC03565B

NYMEX Henry Hub Penultimate gas swaps 0#3CFTC03565C