(Adds closing prices, LNG shutdowns)
Aug 25 (Reuters) - U.S. natural gas futures eased on Tuesday on forecasts for less demand over the
next two weeks than previously expected as liquefied natural gas (LNG) vessels steered clear of U.S.
Gulf of Mexico LNG export terminals ahead of Hurricane Laura.
The price move came despite an expected drop in daily output to its lowest since May as Laura caused
Gulf Coast producers to shut offshore wells. The shutdowns helped boost gas prices to a nine-month high
on Monday.
Hurricane Laura is expected to strengthen into a major Category 3 hurricane with top sustained winds
of 115 miles per hour (185 km per hour) before hitting the Gulf Coast near the Texas-Louisiana border.
Front-month gas futures fell 2.4 cents, or 1.0%, to settle at $2.489 per million British
thermal units. On Monday, the contract closed at its highest since Nov. 25.
Although U.S., European and Asian gas contracts mostly trade on their own fundamentals, a 40% jump
in prices at the Netherlands Title Transfer Facility (TTF) in Europe and a 53% 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 40% this month.
On a daily basis, U.S. LNG exports were on track to fall to a two-week low of 4.1 billion cubic feet
per day (bcfd) as LNG exporters shut or reduced the output of the Gulf Coast LNG terminals. Cheniere
Energy Inc said it temporarily suspended operations at Sabine Pass in Louisiana, the biggest
U.S. LNG export plant.
On a daily basis, U.S. output was on track to fall to a three-month low of 84.9 bcfd, according to
preliminary data from Refinitiv that is subject to change later in the day.
Week ended Week ended Year ago Five-year
Aug 21 Aug Aug 21 average
(Forecast) 14(Actual) Aug 21
U.S. natgas storage (bcf): +50 +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 5 6 4 10 10
U.S. GFS CDDs 194 197 179 168 156
U.S. GFS TDDs 199 203 183 178 166
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 86.7 87.0 92.7 79.1
U.S. Imports from Canada 6.6 7.0 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 93.7 94.0 100.4 87.3
U.S. Demand (bcfd)
U.S. Exports to Canada 2.0 1.9 1.9 3.1 2.2
U.S. Exports to Mexico 5.7 6.0 5.8 5.5 4.4
U.S. LNG Exports 4.7 4.5 4.2 6.5 2.0
U.S. Commercial 4.5 4.5 4.6 4.5 4.5
U.S. Residential 3.5 3.6 3.6 3.6 3.3
U.S. Power Plant 41.8 42.1 38.6 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 78.2 74.8 70.0 71.4
Total U.S. Demand 90.4 90.6 86.6 85.1 80.0 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub Current Day Prior Day
Henry Hub 2.57 2.39
Transco Z6 New York 1.88 1.30
PG&E Citygate 3.45 3.20
Dominion South 1.35 1.15
Chicago Citygate 2.40 2.15
Algonquin Citygate 1.76 1.31
SoCal Citygate 4.35 4.09
Waha Hub 1.32 1.24 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub Current Day Prior Day
New England 33.50 26.75
PJM West 34.50 29.00
Ercot North 18.75 33.00
Mid C 56.75 32.08
Palo Verde 125.25 105.50
SP-15 80.25 57.00
(Reporting by Scott DiSavino)
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