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US natgas prices climb 4% to 13-month high on lower output, rising LNG feedgas



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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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