In a volatile start to the week, natural gas futures gave back a large chunk of the previous session’s gains through midday Tuesday as the market continued to search for fair value.
Here’s the latest:
- July Nymex futures down 15.4 cents to $2.602/MMBtu as of 2:18 p.m. ET
- Front month rallied 16.9 cents on Monday
- Flows to North American LNG terminals steady at around 13 million Dth/d, data from NGI’s LNG Export Tracker show
Deliveries to the Sabine Pass liquefied natural gas facility have ticked lower in recent days. The terminal received around 4.1 million Dth/d for Tuesday, down from volumes around 4.5 million Dth/d late last week.
Maintenance starting Tuesday on the Transcontinental Gas Pipe Line (Transco) was cutting 274 MMcf/d of volumes flowing through a delivery point tied to Sabine Pass LNG, according to Wood Mackenzie analyst Kevin Ong. The maintenance was scheduled to last through early next week, according to Ong.
- Henry Hub spot prices pulling back 6.5 cents after surging 86.5 cents on Monday, per NGI’s MidDay Price Alert
Widespread warmer-than-normal temperatures should result in “decently strong” weather-driven demand the next three days, NatGasWeather said Tuesday.
The latest outlook featured “highs of mid-80s over much of the Midwest/Great Lakes, Ohio Valley and East,” the firm said. “This includes impressive heat continuing to impact Texas with highs of 90s and 100s. The cooler exception is the unsettled Pacific Northwest.”
- Southeast, South Louisiana cash price trends mixed as recent pipe maintenance impacting regional flows
- Transco Zone 4 averaging $3.535, off 10.0 cents day/day, MidDay Price Alert data show
ANR Pipeline on Tuesday lifted a force majeure related to an equipment failure restricting flows through its Eunice Southbound location in Louisiana. A previous bulletin board notice had projected capacity restrictions through Eunice Southbound into next week, but the operator on Tuesday said it was lifting the capacity restriction immediately.
Elsewhere, a restriction on south-to-north flows through Station 60 on the Transco system appeared to remain in effect as of Tuesday. Operational capacity through the location remained at 775,000 MMBtu/d Tuesday, down from 1,600,000 MMBtu/d in early May. Last month, Transco reported an “unplanned incident” during maintenance at the station in East Feliciana Parish, LA.
