HomeNewsU.S. natgas prices ease on big storage build, low flows to LNG export plants

U.S. natgas prices ease on big storage build, low flows to LNG export plants

6/5/2025
  • Last week's storage build biggest since October 2022
  • Gas stockpiles now about 5% above normal
  • LNG export feedgas down in May and June due to maintenance

U.S. natural gas futures ease about 1% on Thursday on a bigger-than-expected storage build and low gas flows to liquefied natural gas (LNG) export plants over the past month or so.

That price decline came despite lower output in recent weeks and forecasts for more demand over the next two weeks than previously expected.

Gas futures for July delivery on the New York Mercantile Exchange fell 2.8 cents, or 0.8%, to $3.688 per million British thermal units (MMBtu) at 10:46 a.m. EDT (1446 GMT).

The U.S. Energy Information Administration (EIA) said energy firms added 122 Bft3 of gas into storage during the week ended May 30.

That topped the 111-Bft3 build analysts forecast in a poll and compares with an increase of 94 Bft3 during the same week last year and a five-year average build of 98 Bft3 for this time of year.

It was also the biggest weekly storage build since October 2022, according to EIA data, and was the seventh time in a row that energy firms added more gas into storage than usual for this time of year with the last six being triple-digit injections.

The increase boosted gas stockpiles to around 5% above the five-year (2020–2024) average.

Another factor keeping pressure on futures prices in recent weeks has been low cash prices. Next-day prices at the U.S. Henry Hub benchmark in Louisiana were around $2.80 per MMBtu. Spot contracts have traded below front-month futures every day since late April. 

Analysts have said that so long as spot prices remain far enough below front-month futures to cover margin and storage costs, traders should be able to lock in arbitrage profits by buying spot gas, storing it and selling a futures contract.

Supply and demand. Financial firm LSEG said average gas output in the Lower 48 U.S. states fell to 104.1 Bft3d so far in June, down from 105.2 Bft3d in May and a monthly record high of 106.3 Bft3d in March.

Energy traders said output reductions over the past month or so were primarily due to normal spring maintenance on gas pipelines. Energy firms usually work on gas pipes and other equipment in the spring and autumn when demand for the fuel for heating and cooling is low.

Meteorologists projected weather across the Lower 48 states would remain mostly warmer than normal through June 20.

LSEG forecast average gas demand in the Lower 48, including exports, will rise from 95.5 Bft3d this week to 97.7 Bft3d next week. Those forecasts were higher than LSEG's outlook on Wednesday.

The average amount of gas flowing to the eight big U.S. LNG export plants fell to 13.5 Bft3d so far in June, down from 15.0 Bft3d in May and a monthly record high of 16.0 Bft3d in April.

Traders said LNG feedgas reductions since April were primarily due to normal spring maintenance, including work at Cameron LNG's 2.0-Bft3d plant in Louisiana and Cheniere Energy's 4.5-Bft3d Sabine Pass facility in Louisiana and 3.9-Bft3d Corpus Christi plant in Texas, and short, unplanned unit outages at Freeport LNG's 2.1-Bft3d plant in Texas on May 6, May 23, May 28 and June 3.

Energy traders have noted that LNG maintenance would likely continue through early- to mid-June at Cameron and late-June at Sabine. Analysts said prices will likely spike in late June when demand for gas rises when those LNG plants return to full service and power generators start burning more gas to meet higher summer air conditioning demand.

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