Due to outages at Freeport LNG’s Texas facility, ample gas supplies in storage, and lower expectations for gas flows to liquefied natural gas (LNG) export plants, natural gas prices fell 1.5% to settle at 150.9. Forecasts for milder weather over the next two weeks fueled the decline.
Even lower than expected demand was the news from Freeport LNG that two of its three liquefaction trains will be unavailable until May for maintenance and testing. Furthermore, statistics from Baker Hughes revealed that 4 fewer rigs were drilling for natural gas in the U.S., suggesting that future production levels may be lower.
With meteorologists predicting a change from colder-than-average weather to seasonally normal circumstances, LSEG estimated a decrease in petrol output in the Lower 48 U.S. states for March compared to February.
The Lower 48’s gas demand, including exports, is expected to increase in the upcoming weeks due to cooler weather from LSEG before declining as the weather gets warmer. These projections, however, exceeded earlier expectations, which increased market uncertainty.
