for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Company News

UPDATE 1-U.S. natgas futures rise close to 7-month high on output drop, hot weather

 (Adds latest prices and pipe outage)
    Aug 11 (Reuters) - U.S. natural gas futures on Tuesday rose close to their highest since December on
a reduction in output, forecasts for hot weather through late August and an increase in liquefied
natural gas exports.
    Front-month gas futures rose 1.8 cents, up 0.8%, to settle at $2.171 per million British
thermal units, putting the contract within a nickel of its highest close since Dec. 26.
    Looking ahead, futures for the balance of 2020 and calendar 2021 traded over the
front-month by 18% and 27%, respectively, on hopes energy demand will rise as the economy rebounds from
coronavirus lockdowns.
    U.S. output for Tuesday was on track to fall 2.5 billion cubic feet per day, the most in a day since
May, to 87.2 bcfd, according to preliminary data from Refinitiv that is subject to change. Traders noted
much of that production loss was in West Virginia due to maintenance this week on TC Energy Corp's
 Mountaineer Xpress pipeline.
    Although U.S. and European gas contracts mostly trade on their own fundamentals, a 47% jump in
prices at the European Title Transfer Facility (TTF) benchmark in the Netherlands so far in
August helped drag U.S. gas up about 22% this month. That made it profitable for more U.S. LNG cargoes
to go to Europe again for the first time in months.
    U.S. LNG exports in August were on track to rise for the first time in six months. Pipeline gas
flowing to the plants climbed to 4.2 bcfd in August from a 21-month low of 3.3 bcfd in July, when buyers
canceled dozens of cargoes.
    Refinitiv projected U.S. demand, including exports, will hold near 88.9 bcfd over the next two
weeks. That is lower than Refinitiv's outlook on Monday as higher gas prices make it cheaper for some
power generators to burn coal instead of gas.
            
                                       Week ended      Week ended    Year ago   Five-year   
                                           Aug 7         Jul 31       Jul 31     average    
                                        (Forecast)      (Actual)                  Jul 31    
 U.S. natgas storage (bcf):                +52            +33          +51         +44 Refinitiv Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days                         
 Two-Week Total Forecast               Current Day     Prior Day    Prior Year   10-Year    30-Year Norm
                                                                                   Norm     
 U.S. GFS HDDs                              1              2            1           4            4
 U.S. GFS CDDs                             217            215          211         192          185
 U.S. GFS TDDs                             218            217          212         196          189
                                                                                            
 Refinitiv U.S. Weekly GFS Supply and Demand Forecasts                                      
                                        Prior Week    Current Week  Next Week   This Week    Five-Year
                                                                                Last Year   Average For
                                                                                               Month
 U.S. Supply (bcfd)
 U.S. Lower 48 Dry Production              88.3           89.0         89.1        92.6         79.1
 U.S. Imports from Canada                  6.7            6.7          6.7         7.8          8.0
 U.S. LNG Imports                          0.0            0.0          0.0         0.0          0.2
 Total U.S. Supply                         95.0           95.7         95.9       100.4         87.3
 
 U.S. Demand (bcfd)
 U.S. Exports to Canada                    2.1            1.9          1.9         2.9          2.2
 U.S. Exports to Mexico                    5.8            5.6          5.7         5.4          4.4
 U.S. LNG Exports                          3.9            4.5          4.8         4.1          2.0
 U.S. Commercial                           4.4            4.4          4.5         4.4          4.5
 U.S. Residential                          3.6            3.5          3.5         3.5          3.3
 U.S. Power Plant                          40.5           41.0         40.3        42.5         36.6
 U.S. Industrial                           21.4           21.5         21.6        21.5         20.6
 U.S. Plant Fuel                           4.4            4.4          4.4         4.4          4.3
 U.S. Pipe Distribution                    2.0            2.0          2.0         2.1          2.0
 U.S. Vehicle Fuel                         0.1            0.1          0.1         0.1          0.1
 Total U.S. Consumption                    76.5           77.0         76.4        78.5         71.4
 Total U.S. Demand                         88.2           88.9         88.8        90.9         80.0 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)                                         
 Hub                                   Current Day     Prior Day                            
 Henry Hub NG-W-HH-SNL                   2.18           2.15                              
 Transco Z6 New York NG-CG-NY-SNL        1.96           1.36                              
 PG&E Citygate NG-CG-PGE-SNL             2.73           2.60                              
 Dominion South NG-PCN-APP-SNL           1.22           1.19                              
 Chicago Citygate NG-CG-CH-SNL           1.94           1.89                              
 Algonquin Citygate NG-CG-BS-SNL         1.78           1.47                              
 SoCal Citygate NG-SCL-CGT-SNL           2.46           1.92                              
 Waha Hub NG-WAH-WTX-SNL                 1.09           0.36 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)                                       
 Hub                                   Current Day     Prior Day                            
 New England EL-PK-NPMS-SNL             46.75          20.50                              
 PJM West EL-PK-PJMW-SNL                36.00          24.50                              
 Ercot North EL-PK-ERTN-SNL             26.00          27.79                              
 Mid C EL-PK-MIDC-SNL                   30.50          26.88                              
 Palo Verde EL-PK-PLVD-SNL              27.00          23.50                              
 SP-15 EL-PK-SP15-SNL                   28.75          24.00                              
 
 (Reporting by Scott DiSavino; Editing by Steve Orlofsky and Nick Zieminski)
  
 
 
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up