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NatGas up on Freeport News

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Natural gas prices jumped around 3 hours ahead of EIA gas storage report release. The jump comes after news on Freeport export terminal. It is said that Freeport terminal may reach full capacity of 2 billion cubic feet per day today. This is a positive news for prices but one should also remember that US natural gas production sits at a very high level. When Freeport was operating at full capacity before the US production stood at 93-95 bcf per day. Now it is 100 or more bcf per day. This is why resuming operations at full capacity at Freeport LNG export terminal will not have much impact on limiting current oversupply in the United States.

Net flows from Freeport LNG terminal and US natural gas production. Source: Bloomberg

NATGAS jumped after Freeport news hit the markets. Source: xStation5

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