September natural gas futures were trading higher through midday Tuesday, supported by soaring summer temperatures and Chesapeake Energy Corp. holding the line on production cuts.
Here’s the latest:
- September Nymex natural gas contract trading up 9.0 cents to $2.126/MMBtu as of 2:21 p.m. ET
- Chesapeake on Tuesday said it would continue its plans to defer drilling activity
Chesapeake had “proactively curtailed volumes” during the weaker spring shoulder season and was “prepared to do so again as necessary in the fall,” CEO Nick Dell'Osso said during the second quarter earnings call.
Given where supply, demand and storage levels are now, “we don't anticipate at this point turning online any material number of wells in the second half of the year in the Haynesville Shale,” COO Josh Viets said.
- U.S. LNG export terminals scheduled to receive around 12.8 Bcf of feed gas Tuesday, down about 0.4 Bcf day/day, per NGI data
Much of the slowdown in flows to U.S. liquefied natural gas export terminals was at Cheniere Energy Inc.’s Sabine Pass terminal. Nominations to the facility fell about 0.4 Bcf to more than 4.0 Bcf on Tuesday, according to NGI’s U.S. LNG Export Tracker.
Meanwhile, Freeport LNG Development LP was scheduled to receive about 2.2 Bcf of feed gas Tuesday, indicating its three trains were running without interruption.
- Cash prices at NGI’s Henry Hub averaging $1.800, down 8.0 cents, according to NGI’s MidDay Price Alert
- Waha down 72.0 cents to negative 87.5 cents; Northeast Regional Avg. led the East higher, up 17.5 cents to $1.900
The American and European weather models were “projecting strong warm anomalies for much of the country over the next two weeks,” according to Intercontinental Exchange Inc. (ICE). Some of the hottest temperatures advertised over the next five days were in central states, Upper Midwest and portions of the West, ICE data show.
“A lot of red over key demand areas – especially over the next week or so,” said The Desk's John Sodergreen, editor-in-chief.
“Next week’s demand will be the highest of the season based on the current models,” Criterion Research Inc.’s James Bevan, vice president of Research, said on online energy platform Enelyst.
