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.