for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

UPDATE 1-U.S. natgas gains as focus returns to high demand

 (Adds settlement prices, comment)
    June 15 (Reuters) - U.S. natural gas futures regained some ground on Wednesday as focus returned to
soaring demand amid heat waves, stabilizing after a 17% slide in the last session on bets that an extended
Freeport LNG export hub outage would increase domestic stocks.
    Front-month gas futures rose about 23 cents or 3.2% to settle at $7.420 per million British thermal
units. Prices settled 17% lower on Tuesday, registering their lowest close since May 9.
    Goldman Sachs raised its summer Henry Hub prices forecasts to $7.15 per MMBtu from $6.80 previously,
reasoning that the higher U.S. stocks due to the Freeport outage would be offset by hotter temperatures and
stronger-than-expected power and residential demand.     
    News that the Freeport restart could take 90 days rather than the initial three-week estimate following an
explosion last week also exacerbated concerns over gas shortages in Europe and pushed up prices in the region.

    Freeport, the second-biggest U.S. LNG export plant, consumes about 2 billion cubic feet per day (bcfd) of
gas, so a 90-day shutdown would result in about 180 billion cubic feet (bcf) more gas being available to the
U.S. market.
    U.S. storage is currently about 15%, or 340 bcf, below normal levels for this time of year, its lowest
since April 2019.
    "The market has sailed pass the Freeport episode unless some news develops again. The additional gas freed
up for domestic consumption could only do that much to the price and the market is looking forward to the
future," said Zhen​ Zhu, managing consultant at C.H. Guernsey and Co in Oklahoma City. 
    "But while demand is high fundamentally, the production and expected production increases provide some
sanity check," Zhu added.
    Power demand in Texas failed to hit a new all-time high on Monday due to less hot weather, but will likely
break peak use records later this week as homes and businesses keep air conditioners cranked up to escape a
lingering heat wave.
    Low wind power forces generators, including those in Texas - the state with the most wind power - to burn
more gas to keep the lights on.
    U.S. gas futures were still up about 103% this year as much-higher prices in Europe and Asia keep demand
for U.S. LNG exports strong, especially since Russia's Feb. 24 invasion of Ukraine stoked fears Moscow might
cut gas supplies to Europe. 
    The seven big U.S. export plants can turn about 13.6 bcfd of gas into LNG.
    "We're likely to see consolidation the rest of the week," said Christin Kelley, senior commodity analyst
at Schneider Electric, also pegging the rebound to some investors covering their shorts.
        
                                              Week ended     Week ended     Year ago   Five-year        
                                                Jun 10          Jun 3        Jun 10     average    
                                              (Forecast)      (Actual)                   Jun 10    
 U.S. weekly natgas storage change (bcf):         +90            +97          +28         +79           
 U.S. total natgas in storage (bcf):             2,089          1,999        2,425       2,418          
 U.S. total storage versus 5-year average       -13.6%         -14.5% Global Gas Benchmark Futures ($ per mmBtu)   Current Day     Prior Day    This Month  Prior Year   Five Year
                                                                           Last Year    Average      Average
                                                                                          2021     (2017-2021)
 Henry Hub                                       7.40           7.18          3.27        3.73        2.89
 Title Transfer Facility (TTF)                   34.98          26.92        10.27       16.04        7.49
 Japan Korea Marker (JKM)                        23.18          23.04        11.58       18.00        8.95 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                                     8              7            5           10          11
 U.S. GFS CDDs                                    208            200          183         168          166
 U.S. GFS TDDs                                                   207          188         178          177 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                    94.9           94.9          93.9        92.0        84.6
 U.S. Imports from Canada                         7.9            8.1          7.6         7.8          7.7
 U.S. LNG Imports                                 0.0            0.0          0.0         0.0          0.1
 Total U.S. Supply                               102.8          103.0        102.8        99.8        92.4 U.S. Demand (bcfd)                                                                                     
 U.S. Exports to Canada                           2.6            2.2          2.2         2.1          2.2
 U.S. Exports to Mexico                           6.0            6.1          6.1         5.3          5.1
 U.S. LNG Exports                                12.3           10.7          11.3        9.6          4.3
 U.S. Commercial                                  4.6            4.5          4.4         4.4          4.7
 U.S. Residential                                 3.9            3.7          3.7         3.5          4.3
 U.S. Power Plant                                33.2           39.3          38.4        36.3        32.8
 U.S. Industrial                                 20.7           20.9          20.9        20.7        20.9
 U.S. Plant Fuel                                  4.7            4.7          4.7         4.7          4.7
 U.S. Pipe Distribution                           1.8            2.0          2.0         1.9          1.8
 U.S. Vehicle Fuel                                0.1            0.1          0.1         0.1          0.1
 Total U.S. Consumption                          69.0           75.2          74.3        71.6        69.3
 Total U.S. Demand                               89.9           94.2          93.9        88.6        80.9 U.S. weekly power generation percent by fuel - EIA                                                
                                              Week ended     Week ended    Week ended  Week ended  Week ended
                                                Jun 17         Jun 10        Jun 3       May 27      May 20
 Wind                                              9              8            12          12          12
 Solar                                             5              5            4           4            4
 Hydro                                             5              7            7           7            7
 Other                                             2              2            2           2            2
 Petroleum                                         0              0            0           0            0
 Natural Gas                                      41             41            36          37          37
 Coal                                             20             20            19          20          20
 Nuclear                                          19             19            19          19          19 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
 Hub                                          Current Day     Prior Day                            
 Henry Hub NG-W-HH-SNL                         7.68           9.00                               
 Transco Z6 New York NG-CG-NY-SNL              6.75           7.99                               
 PG&E Citygate NG-CG-PGE-SNL                   8.60           9.66                               
 Dominion South NG-PCN-APP-SNL                 6.80           7.80                               
 Chicago Citygate NG-CG-CH-SNL                 6.98           8.40                               
 Algonquin Citygate NG-CG-BS-SNL               6.90           8.30                               
 SoCal Citygate NG-SCL-CGT-SNL                 7.74           8.75                               
 Waha Hub NG-WAH-WTX-SNL                       7.07           7.95                               
 AECO NG-ASH-ALB-SNL                           7.00           6.55 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)
 Hub                                          Current Day                                          
 New England EL-PK-NPMS-SNL                    73.75          88.50                              
 PJM West EL-PK-PJMW-SNL                      179.50         153.50                              
 Ercot North EL-PK-ERTN-SNL                    87.00          87.00                              
 Mid C EL-PK-MIDC-SNL                          2.25           2.50                               
 Palo Verde EL-PK-PLVD-SNL                     61.25          51.50                              
 SP-15 EL-PK-SP15-SNL                          65.50          52.75                              
 
 (Reporting by Arpan Varghese and Eileen Soreng in Bengaluru; Editing by Will Dunham
Editing by Nick Zieminski)
  
 
 
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up