Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC

U.S. natgas futures edge up on cold forecasts, rising LNG exports

U.S. natural gas futures edged up on Friday on forecasts for the weather to turn colder and heating demand to rise in late October and a continued rise in LNG exports. That price increase came despite a rise in output with Gulf Coast wells returning after Hurricane Delta.

Front-month gas futures rose 5.3 cents, or 1.9%, to $2.828 per million British thermal units at 8:44 a.m. EDT (1244 GMT). That puts the contract on track to rise for a fourth week in a row after gaining about 3% this week.

Data provider Refinitiv said output in the Lower 48 U.S. states jumped to 87.4 billion cubic feet per day (bcfd) on Thursday from a 26-month low of 82.4 bcfd over the weekend as wells shut for Delta returned to service.

As LNG exports rise and the weather turns colder, Refinitiv projected average demand would jump from 85.1 bcfd this week to 90.3 bcfd next week and 98.0 bcfd in two weeks. The amount of gas flowing to LNG export plants has averaged 6.8 bcfd so far in October, up from 5.7 bcfd in September, despite hurricane and maintenance outages this month.

That would be the most in a month since April and puts exports on track to rise for a third month in a row for the first time since February when feedgas hit a record 8.7 bcfd as rising global gas prices prompted buyers to reverse cargo cancellations.

Previously, U.S. exports fell from March-July as coronavirus-related demand destruction caused prices in Europe and Asia to collapse to record lows and buyers to cancel around 175 U.S. cargoes.

Front-month gas prices in Europe and Asia were trading at their highest since

December 2019 and January 2020, respectively, putting them both more than $2 per mmBtu over the U.S. Henry Hub benchmark.

(Reporting by Scott DiSavino; Editing by Steve Orlofsky)



Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo


Editorial Comment
-Adrienne Blume
What are “green technologies,” and why do we need them in gas processing and LNG?
Executive Viewpoint: GTI’s Hydrogen Technology Center makes big strides in H2 projects, advocacy
-Kristine Wiley
To address the many challenges and opportunities in the world’s energy future, the U.S.-headquartered, global-focused GTI recently launched a Hydrogen Technology Center with world-class research and development capabilities.
Regional Focus: India leaps forward on natural gas infrastructure
-Gordon Feller
The operator of Europe’s largest natural gas transmission network is working to invest in the Indian gas pipeline business.

Throughput optimization for pipelines and gas plants

Register Now

Many processes within oil and gas pipelines and processing plants depend on maintaining specific temperatures and pressures at which the process fluids are liquids or gases. In addition, anytime water is a component in the process fluid hydrates can form and plug piping and vessels. Learn how Sensia’s Throughput optimization solution allows operators, and control systems to “see inside” the process in real time to understand where the facility is operating with respect to critical physical constants, including the phase envelope and hydrate temperature. This insight allows for more stable operation, reduced energy expenditure and associated emissions, and greater facility throughput. Case studies will include controlling methanol injection, managing heaters, virtual sensors for sulfur recovery units and more.

April 1, 2021 10:00 AM CDT

Register Now


Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2021 Gulf Publishing Holdings LLC.