US natgas prices edge up 1% on record flows to LNG export plants

Reuters
21 Mar
US natgas prices edge up 1% on record flows to LNG export plants

US gas output on track to hit monthly record in March

US LNG export feedgas set to hit monthly record in March

US gas inventories on track for unusual build in March

By Scott DiSavino

March 21 (Reuters) - U.S. natural gas futures edged up about 1% on Friday on record flows to liquefied natural gas $(LNG)$ export plants.

Front-month gas futures NGc1 for April delivery on the New York Mercantile Exchange rose 5.3 cents, or 1.3%, to $4.028 per million British thermal units (mmBtu) at 9:16 a.m. EDT (1316 GMT). On Thursday, the contract closed at its lowest since February 28.

That increase came despite record output and forecasts of milder weather and lower heating demand than previously expected through early April, which should allow utilities to keep adding fuel to storage in the coming weeks.

Some analysts say gas stockpiles are on track to increase in March for the first time since 2012 and only the second time in history.

So far, however, gas stockpiles remain around 8% below normal levels for this time of year after extremely cold weather in January and February forced energy firms to pull large amounts of gas out of storage, including record amounts in January. EIA/GAS NGAS/POLL

SUPPLY AND DEMAND

Financial firm LSEG said average gas output in the Lower 48 U.S. states rose to 105.9 billion cubic feet per day (bcfd) so far in March, up from a record 105.1 bcfd in February.

Meteorologists projected temperatures in the Lower 48 states would remain mostly warmer than normal through April 5.

LSEG forecast average gas demand in the Lower 48, including exports, will rise from 106.8 bcfd this week to 108.0 bcfd next week before sliding to 106.1 bcfd in two weeks. The forecasts for this week and next week were similar to LSEG's outlook on Thursday.

The amount of gas flowing to the eight big operating U.S. LNG export plants rose to an average of 15.7 bcfd so far in March, up from a record 15.6 bcfd in February, as new units at Venture Global's VG.N 3.2-bcfd Plaquemines LNG export plant, currently under construction in Louisiana, enter service.

On a daily basis, LNG feedgas was on track to hit a preliminary record high of 16.6 bcfd on Friday, up from 16.0 bcfd on Thursday and an average of 15.9 bcfd over the prior seven days. If correct, that would top the current all-time daily high of 16.4 bcfd set on February 23.

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 in part 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

Week ended Mar 21 Forecast

Week ended Mar 14 Actual

Year ago Mar 21

Five-year average

Mar 21

U.S. weekly natgas storage change (bcf):

+11

+9

-30

-31

U.S. total natgas in storage (bcf):

1,718

1,707

2,301

1,866

U.S. total storage versus 5-year average

-7.9%

-10.0%

Global Gas Benchmark Futures ($ per mmBtu)

Current Day

Prior Day

This Month Last Year

Prior Year Average 2024

Five-Year Average (2019-2023)

Henry Hub NGc1

3.92

3.98

1.75

2.41

3.52

Title Transfer Facility (TTF) TRNLTTFMc1

13.92

13.67

8.54

10.95

15.47

Japan Korea Marker (JKM) JKMc1

13.53

13.78

8.95

11.89

15.23

LSEG Heating $(HDD.UK)$, Cooling $(CDD.AU)$ and Total (TDD) Degree Days

Two-Week Total Forecast

Current Day

Prior Day

Prior Year

10-Year Norm

30-Year Norm

U.S. GFS HDDs

211

231

255

246

236

U.S. GFS CDDs

30

25

10

20

18

U.S. GFS TDDs

241

256

265

266

254

LSEG U.S. Weekly GFS Supply and Demand Forecasts

Prior Week

Current Week

Next Week

This Week Last Year

Five-Year (2020-2024)Average For Month

U.S. Supply (bcfd)

U.S. Lower 48 Dry Production

105.7

106.1

105.6

101.6

97.5

U.S. Imports from Canada

9.1

8.8

9.0

N/A

7.8

U.S. LNG Imports

0.0

0.0

0.0

0.0

0.1

Total U.S. Supply

114.7

114.8

114.5

N/A

105.4

U.S. Demand (bcfd)

U.S. Exports to Canada

3.8

4.0

3.9

N/A

3.3

U.S. Exports to Mexico

6.2

5.9

6.2

N/A

5.4

U.S. LNG Exports

15.5

16.0

16.4

13.1

11.8

U.S. Commercial

11.2

10.3

10.7

11.9

11.8

U.S. Residential

17.2

15.6

15.6

17.7

18.3

U.S. Power Plant

25.9

24.0

24.0

30.8

27.5

U.S. Industrial

23.7

23.5

23.7

24.5

23.8

U.S. Plant Fuel

5.2

5.2

5.2

5.2

5.2

U.S. Pipe Distribution

2.3

2.2

2.2

2.5

3.3

U.S. Vehicle Fuel

0.1

0.1

0.1

0.1

0.2

Total U.S. Consumption

85.6

80.9

81.5

92.7

90.1

Total U.S. Demand

111.1

106.8

108.0

N/A

110.6

N/A is Not Available

U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam (Fiscal year ending Sep 30)

2025 Current Day

% of Normal Forecast

2025

Prior Day % of Normal Forecast

2024

% of Normal Actual

2023

% of Normal Actual

2022

% of Normal Actual

Apr-Sep

91

92

74

83

107

Jan-Jul

88

89

76

77

102

Oct-Sep

89

90

77

76

103

U.S. weekly power generation percent by fuel - EIA

Week ended Mar 21

Week ended Mar 14

2024

2023

2022

Wind

18

15

11

10

11

Solar

6

7

5

4

3

Hydro

7

7

6

6

6

Other

1

1

1

2

2

Petroleum

0

0

0

0

0

Natural Gas

32

34

42

41

38

Coal

14

16

16

17

21

Nuclear

20

20

19

19

19

SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)

Hub

Current Day

Prior Day

Henry Hub NG-W-HH-SNL

4.23

4.21

Transco Z6 New York NG-CG-NY-SNL

3.31

3.34

PG&E Citygate NG-CG-PGE-SNL

3.75

3.86

Eastern Gas (old Dominion South) NG-PCN-APP-SNL

3.27

3.33

Chicago Citygate NG-CG-CH-SNL

3.35

3.69

Algonquin Citygate NG-CG-BS-SNL

3.55

3.54

SoCal Citygate NG-SCL-CGT-SNL

3.71

3.88

Waha Hub NG-WAH-WTX-SNL

1.12

0.77

AECO NG-ASH-ALB-SNL

1.51

1.46

ICE U.S. Power Next-Day Prices ($ per megawatt-hour)

Hub

Current Day

Prior Day

New England E-NEPLMHP-IDX

40.00

45.92

PJM West E-PJWHDAP-IDX

49.96

50.42

Mid C W-MIDCP-IDX

24.08

33.77

Palo Verde W-PVP-IDX

8.38

11.16

SP-15 W-SP15-IDX

2.60

1.42

(Reporting by Scott DiSavino; Editing by Joe Bavier)

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

For gas data on the LSEG terminal type ENERGY in the search bar and then go to the GAS drop down and the NORTH AMERICA drop down.

For Interactive Map, type 'Interactive Map' in the box at upper left of the LSEG terminal

For graphics on Baker Hughes rig counts, see: http://graphics.thomsonreuters.com/15/rigcount/index.html

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

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10