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UPDATE 2-U.S. natgas up to highest since August as Hurricane Delta shuts output

 (New throughout, updates prices, market activity and comments)
    Oct 8 (Reuters) - U.S. natural gas futures edged up on Thursday to their highest since August, as
the Gulf of Mexico braced for Hurricane Delta's arrival and the market focused more on production
declines than on lower gas flows to the region's liquefied natural gas (LNG) export plants.
    Delta was expected to slam into Louisiana on Friday with winds over 100 miles per hour (161 kph).

    Traders noted that prices fell early in the session, then turned positive following a report
showing an expected, below-normal storage build last week that keeps inventories on track to reach a
record high by the end of October.
    The U.S. Energy Information Administration said utilities injected 75 billion cubic feet (bcf) of
gas into storage in the week ended Oct. 2.
    That is in line with the 73-bcf build analysts forecast in a Reuters poll and compares with an
increase of 102 bcf during the same week last year and a five-year (2015-19) average build of 86 bcf.

    Front-month gas futures rose 2.1 cents, or 0.8%, to settle at $2.627 per million British
thermal units, their highest since Aug. 31.
    Data provider Refinitiv said output in the Lower 48 U.S. states was on track to drop from a
26-month low of 84.1 billion cubic feet per day (bcfd) on Wednesday to a preliminary 83.3 bcfd on
Thursday as Gulf Coast producers shut wells.
    The U.S. Bureau of Safety and Environmental Enforcement said energy firms shut 1.7 bcfd, or 62%, of
offshore Gulf of Mexico gas production.
    In Louisiana, Cameron LNG said it would shut its LNG export plant, while Cheniere Energy Inc
 reduced gas flows to its Sabine Pass facility but planned to keep it operating with a small
"ride-out" crew.
    With LNG exports declining, Refinitiv projected demand would slip from 86.9 bcfd this week to 85.5
bcfd next week.
        
                                       Week ended     Week ended    Year ago   Five-year   
                                         Oct 2         Sep 25        Oct 2      average    
                                        (Actual)       (Actual)                  Oct 2     
 U.S. natgas storage (bcf):                +75           +76          +102        +86 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                             117           104           75          73          127
 U.S. GFS CDDs                             52             55           99          72           40
 U.S. GFS TDDs                             169           159          174         145          167
                                                                                           
 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             86.6           85.7         85.6        94.2         80.1
 U.S. Imports from Canada                  5.9           6.7          6.5         7.3          7.6
 U.S. LNG Imports                          0.0           0.0          0.0         0.0          0.2
 Total U.S. Supply                        92.6           92.4         92.1       101.5         87.9
 
 U.S. Demand (bcfd)
 U.S. Exports to Canada                    2.1           2.2          2.2         2.2          1.9
 U.S. Exports to Mexico                    6.0           5.9          5.9         5.9          4.5
 U.S. LNG Exports                          6.4           7.1          7.4         6.1          2.3
 U.S. Commercial                           5.3           6.0          5.7         5.8          6.7
 U.S. Residential                          4.9           6.2          5.9         5.8          7.0
 U.S. Power Plant                         30.6           31.3         30.4        31.1         26.8
 U.S. Industrial                          21.8           22.1         21.7        21.5         21.0
 U.S. Plant Fuel                           4.3           4.2          4.2         4.2          4.3
 U.S. Pipe Distribution                    1.8           1.9          1.9         1.9          1.8
 U.S. Vehicle Fuel                         0.1           0.1          0.1         0.1          0.1
 Total U.S. Consumption                   68.9           71.8         70.0        70.4         67.7
 Total U.S. Demand                        83.4           86.9         85.5        84.6         76.4 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)                                        
 Hub                                   Current Day    Prior Day                            
 Henry Hub NG-W-HH-SNL                  2.01           1.86                              
 Transco Z6 New York NG-CG-NY-SNL       1.15           1.15                              
 PG&E Citygate NG-CG-PGE-SNL            3.97           4.00                              
 Dominion South NG-PCN-APP-SNL          1.12           1.09                              
 Chicago Citygate NG-CG-CH-SNL          1.59           1.55                              
 Algonquin Citygate NG-CG-BS-SNL        1.34           1.35                              
 SoCal Citygate NG-SCL-CGT-SNL          2.92           4.24                              
 Waha Hub NG-WAH-WTX-SNL                0.40           0.61 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)                                      
 Hub                                   Current Day    Prior Day                            
 New England EL-PK-NPMS-SNL             20.25         25.25                              
 PJM West EL-PK-PJMW-SNL                19.75         22.25                              
 Ercot North EL-PK-ERTN-SNL             24.00         28.00                              
 Mid C EL-PK-MIDC-SNL                   28.67         43.08                              
 Palo Verde EL-PK-PLVD-SNL              26.50         55.00                              
 SP-15 EL-PK-SP15-SNL                   32.25         44.50                              
 
 (Reporting by Scott DiSavino; Editing by Kirsten Donovan, Andrea Ricci and David Gregorio)
  
 
 
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