(Adds latest prices, LNG shutdowns)
Aug 26 (Reuters) - U.S. natural gas futures slipped on Wednesday as liquefied natural gas (LNG)
exports dropped to an 18-month low as vessels steered clear of Hurricane Laura.
The price move came despite a drop in output to its lowest since 2018 as producers shut offshore
wells ahead of the storm.
Hurricane Laura strengthened into a major Category 4 storm with sustained winds of 145 miles per
hour (233 kph) before slamming into the Gulf Coast near the Texas-Louisiana border tonight.
On its second to last day as the front-month, gas futures for September delivery fell 2.8
cents, or 1.1%, to settle at $2.461 per million British thermal units (mmBtu).
The October contract, which will soon be the front-month, was down 2.5% to $2.57 per mmBtu,
which would still be the highest close for the front-month since Nov. 22.
Although U.S., European and Asian gas contracts mostly trade on their own fundamentals, a 76% jump
in prices at the Netherlands Title Transfer Facility (TTF) in Europe and a 57% increase at
the Japan-Korea Marker (JKM) in Asia so far in August have made U.S. LNG more attractive in
global markets, which helped push U.S. gas futures up about 41% this month.
On a daily basis, U.S. LNG exports were on track to fall to 2.8 billion cubic feet per day (bcfd),
their lowest since February 2019, as exporters shut or reduced output at their Gulf Coast terminals
ahead of Laura. The amount of gas flowing to Cheniere Energy Inc's Sabine Pass plant in
Louisiana fell to zero for the first time since it started operating in 2016.
U.S. output, meanwhile, was on track to drop to 84.2 bcfd, its lowest since September 2018,
according to preliminary data from Refinitiv.
Week ended Week ended Year ago Five-year
Aug 21 Aug Aug 21 average
(Forecast) 14(Actual) Aug 21
U.S. natgas storage (bcf): +47 +43 +60 +49 Refinitiv Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days
Two-Week Total Forecast Current Day Prior Day Prior Year 10-Year 30-Year Norm
Norm
U.S. GFS HDDs 6 5 4 10 11
U.S. GFS CDDs 195 194 179 168 153
U.S. GFS TDDs 201 199 183 178 164
Refinitiv U.S. Weekly GFS Supply and Demand Forecasts
Prior Week Current Week Next Week This Week Five-Year
Last Year Average For
Month
U.S. Supply (bcfd)
U.S. Lower 48 Dry Production 88.6 86.4 86.6 92.7 79.1
U.S. Imports from Canada 6.6 7.1 7.0 7.7 8.0
U.S. LNG Imports 0.0 0.0 0.0 0.0 0.2
Total U.S. Supply 95.2 93.4 93.6 100.4 87.3
U.S. Demand (bcfd)
U.S. Exports to Canada 2.0 1.9 1.8 3.1 2.2
U.S. Exports to Mexico 5.7 6.1 5.8 5.5 4.4
U.S. LNG Exports 4.7 4.0 3.4 6.5 2.0
U.S. Commercial 4.5 4.5 4.6 4.5 4.5
U.S. Residential 3.5 3.6 3.7 3.6 3.3
U.S. Power Plant 41.8 42.6 39.3 33.9 36.6
U.S. Industrial 21.6 21.5 21.5 21.5 20.6
U.S. Plant Fuel 4.4 4.3 4.3 4.3 4.3
U.S. Pipe Distribution 2.1 2.1 2.0 2.1 2.0
U.S. Vehicle Fuel 0.1 0.1 0.1 0.1 0.1
Total U.S. Consumption 77.9 78.7 75.4 70.0 71.4
Total U.S. Demand 90.4 90.6 86.4 85.1 80.0 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub Current Day Prior Day
Henry Hub 2.54 2.57
Transco Z6 New York 1.69 1.88
PG&E Citygate 3.50 3.45
Dominion South 1.28 1.35
Chicago Citygate 2.38 2.40
Algonquin Citygate 1.51 1.76
SoCal Citygate 4.85 4.35
Waha Hub 1.44 1.32 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub Current Day Prior Day
New England 21.25 33.50
PJM West 26.00 34.50
Ercot North 30.92 18.75
Mid C 23.50 56.75
Palo Verde 122.00 125.25
SP-15 79.25 80.25
(Reporting by Scott DiSavino
Editing by Chizu Nomiyama and Cynthia Osterman)
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