US natgas prices climb 4% to 13-month high on lower output, rising LNG feedgas
Utilities likely pulled more gas out of storage than usual last week
US LNG feedgas on track to hit 11-month high
New England to get first LNG cargo of the winter season soon
By Scott DiSavino
Dec 19 (Reuters) -U.S. natural gas futures climbed about 4% to a 13-month high on Thursday on lower output in recent days and an increase in the amount of gas flowing to liquefied natural gas (LNG) export plants to an 11-month high.
That price increase also came ahead of a federal report expected to show utilities pulled a bigger-than-usual 126 billion cubic feet (bcf) of gas out of storage during the week ended Dec. 13. That compares with a decrease of 92 bcf during the same week last year and a five-year average draw of 78 bcf for this time of year. EIA/GAS NGAS/POLL
Analysts, however, projected rising output so far this month and forecasts for mild weather and low heating demand through the start of the new year should keep storage withdrawals smaller than normal in coming weeks. There was currently about 4% more gas in storage than usual for this time of year. EIA/GAS NGAS/POLL
Front-month gas futures NGc1 for January delivery on the New York Mercantile Exchange rose 12 cents, or 3.6%, to $3.494 per million British thermal units (mmBtu) at 9:10 a.m. EST (1410 GMT), putting the contract on track for its highest close since November 2023.
With the front-month up about 9% over the past three days, the premium of futures for January over February NGF25-G25 jumped to a record high of 28 cents per mmBtu.
SUPPLY AND DEMAND
Financial firm LSEG said average gas output in the Lower 48 U.S. states rose to 103.0 billion cubic feet per day (bcfd) so far in December, up from 101.5 bcfd in November. That compares with a record 105.3 bcfd in December 2023.
On a daily basis, however, output was on track to drop by 2.2 bcfd over the past six days to a preliminary four-week low of 101.9 bcfd on Thursday. Analysts noted that preliminary data was often revised later in the day.
Meteorologists projected weather in the Lower 48 would remain mostly warmer than normal through at least Jan. 3.
But with seasonally colder weather coming - it is usually colder in January than December - LSEG forecast average gas demand in the Lower 48, including exports, would rise from 124.6 bcfd this week to 127.7 bcfd next week. The forecast for this week was higher than LSEG's outlook on Wednesday, while its forecast for next week was lower.
The amount of gas flowing to the eight big LNG export plants in the U.S. rose to an average of 14.1 bcfd so far in December, up from 13.6 bcfd in November. That compares with a monthly record high of 14.7 bcfd in December 2023.
On a daily basis, LNG feedgas was on track to reach an 11-month high of 14.9 bcfd with flows rising to a seven-month high of 5.1 bcfd at Cheniere Energy's LNG.N 4.5-bcfd Sabine Pass in Louisiana and a record 0.4 bcfd at Venture Global LNG's 2.6-bcfd Plaquemines under construction in Louisiana.
In other LNG news, the Seapeak Catalunya C}KL7309482782 LNG vessel anchored outside Boston with what will likely be New England's first LNG cargo of the winter - this one from Trinidad and Tobago. Last winter, Constellation Energy's CEG.O Everett LNG terminal in Massachusetts received six cargoes from December 2023-March 2024 - five from Trinidad and one from Norway, according to LSEG data.
New England power generators often switch from relatively cheap pipeline gas to more expensive oil and gas from LNG imports because gas pipelines into the six-state region cannot carry enough supply to heat the region's homes and businesses and fuel its power plants on the coldest winter days.
Week ended Dec 13 Forecast | Week ended Dec 6 Actual | Year ago Dec 13 | Five-year average Dec 13 | ||
U.S. weekly natgas storage change (bcf): | -126 | -190 | -92 | -78 | |
U.S. total natgas in storage (bcf): | 3,621 | 3,747 | 3,602 | 3,490 | |
U.S. total storage versus 5-year average | 3.8% | 4.6% | |||
Global Gas Benchmark Futures ($ per mmBtu) | Current Day | Prior Day | This Month Last Year | Prior Year Average 2023 | Five-Year Average (2018-2022) |
Henry Hub NGc1 | 3.48 | 3.37 | 2.54 | 2.66 | 3.60 |
Title Transfer Facility (TTF) TRNLTTFMc1 | 12.74 | 12.43 | 11.55 | 13.04 | 14.39 |
Japan Korea Marker (JKM) JKMc1 | 13.01 | 12.32 | 14.03 | 14.39 | 14.31 |
LSEG Heating (HDD), Cooling (CDD) 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 | 336 | 328 | 314 | 402 | 426 |
U.S. GFS CDDs | 5 | 5 | 3 | 5 | 4 |
U.S. GFS TDDs | 341 | 333 | 317 | 407 | 430 |
LSEG U.S. Weekly GFS Supply and Demand Forecasts | |||||
Prior Week | Current Week | Next Week | This Week Last Year | Five-Year (2019-2023)Average For Month | |
U.S. Supply (bcfd) | |||||
U.S. Lower 48 Dry Production | 103.2 | 103.2 | 102.9 | 105.6 | 97.8 |
U.S. Imports from Canada | 9.8 | 9.5 | 9.8 | N/A | 8.7 |
U.S. LNG Imports | 0.0 | 0.0 | 0.0 | 0.0 | 0.2 |
Total U.S. Supply | 113.0 | 112.7 | 112.6 | N/A | 106.7 |
U.S. Demand (bcfd) | |||||
U.S. Exports to Canada | 3.0 | 3.5 | 3.5 | N/A | 3.4 |
U.S. Exports to Mexico | 5.7 | 5.8 | 5.7 | N/A | 5.4 |
U.S. LNG Exports | 13.6 | 13.9 | 14.0 | 14.7 | 10.8 |
U.S. Commercial | 15.4 | 14.4 | 15.6 | 13.8 | 14.3 |
U.S. Residential | 25.5 | 23.3 | 25.4 | 22.0 | 23.4 |
U.S. Power Plant | 33.2 | 31.1 | 30.5 | 35.1 | 30.3 |
U.S. Industrial | 25.2 | 24.7 | 25.1 | 24.7 | 25.1 |
U.S. Plant Fuel | 5.1 | 5.1 | 5.1 | 5.1 | 5.2 |
U.S. Pipe Distribution | 2.9 | 2.7 | 2.8 | 2.8 | 3.7 |
U.S. Vehicle Fuel | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
Total U.S. Consumption | 107.4 | 101.5 | 104.6 | 103.6 | 102.1 |
Total U.S. Demand | 129.8 | 124.6 | 127.7 | N/A | 121.7 |
N/A is Not Available | |||||
U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam | 2025 Current Day % of Normal Forecast | 2025 Prior Day % of Normal Forecast | 2024 % of Normal Actual | 2003 % of Normal Actual | 2022 % of Normal Actual |
Apr-Sep | 92 | 94 | 74 | 83 | 107 |
Jan-Jul | 90 | 91 | 76 | 77 | 102 |
Oct-Sep | 90 | 91 | 77 | 76 | 103 |
U.S. weekly power generation percent by fuel - EIA | |||||
Week ended Dec 20 | Week ended Dec 13 | 2023 | 2022 | 2021 | |
Wind | 14 | 13 | 10 | 11 | 10 |
Solar | 3 | 3 | 4 | 3 | 3 |
Hydro | 6 | 5 | 6 | 6 | 7 |
Other | 1 | 1 | 2 | 2 | 2 |
Petroleum | 0 | 0 | 0 | 0 | 0 |
Natural Gas | 39 | 39 | 41 | 38 | 37 |
Coal | 17 | 18 | 17 | 21 | 23 |
Nuclear | 22 | 20 | 19 | 19 | 20 |
SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu) | |||||
Hub | Current Day | Prior Day | |||
Henry Hub NG-W-HH-SNL | 3.01 | 2.85 | |||
Transco Z6 New York NG-CG-NY-SNL | 3.08 | 2.78 | |||
PG&E Citygate NG-CG-PGE-SNL | 3.65 | 3.67 | |||
Eastern Gas (old Dominion South) NG-PCN-APP-SNL | 2.81 | 2.70 | |||
Chicago Citygate NG-CG-CH-SNL | 3.13 | 2.70 | |||
Algonquin Citygate NG-CG-BS-SNL | 4.65 | 3.30 | |||
SoCal Citygate NG-SCL-CGT-SNL | 3.69 | 3.59 | |||
Waha Hub NG-WAH-WTX-SNL | 2.73 | 2.58 | |||
AECO NG-ASH-ALB-SNL | 1.18 | 1.24 | |||
SNL U.S. Power Next-Day Prices ($ per megawatt-hour) | |||||
Hub | Current Day | Prior Day | |||
New England EL-PK-NPMS-SNL | 53.50 | 54.75 | |||
PJM West EL-PK-PJMW-SNL | 35.50 | 33.75 | |||
Ercot North EL-PK-ERTN-SNL | 27.88 | 25.50 | |||
Mid C EL-PK-MIDC-SNL | 36.83 | 48.00 | |||
Palo Verde EL-PK-PLVD-SNL | 45.00 | 39.75 | |||
SP-15 EL-PK-SP15-SNL | 45.25 | 40.00 |
Reporting by Scott DiSavino
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
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