US Natgas Prices Rise on Strong LNG Demand

US natural gas prices rose more than 4% to $2.785 per MMBtu on Monday, supported by stronger demand from liquefied natural gas (LNG) export facilities. Daily flows to the nine major US LNG export plants were on track to reach a one-month high of 17.9 bcfd. Also, average feedgas demand stood at 17.2 bcfd in July, just below June’s monthly record of 17.4 bcfd. Meanwhile, natural gas production in the Lower 48 states averaged a record 111.2 bcfd in August, up from 110.7 bcfd in July. Strong output and relatively mild weather earlier this year have kept inventories above the five-year average since March. Analysts expect the storage surplus to narrow slightly to 6.6% above normal for the week ending August 7. However, forecasts point to continued above-normal temperatures through August 25, which should sustain gas demand from power generators as air-conditioning use remains elevated.




