U.S. Natural Gas Prices Rise 4% on Colder Forecasts, Record LNG Export Feedgas Levels
U.S. natural gas futures rose 4% as forecasts for colder weather lifted demand and LNG export feedgas hit a record 17.4 Bcf/d. Near-record output and strong storage levels kept prices in check, but LNG flows to Gulf Coast terminals continue driving market strength.
(Reuters) — U.S. natural gas futures climbed nearly 4% on Monday, supported by colder weather forecasts, stronger heating demand expectations, and record feedgas deliveries to LNG export terminals, underscoring the sector’s growing influence on domestic gas markets.
Front-month gas futures for November delivery rose 13.8 cents, or 4.2%, to $3.44 per MMBtu on the New York Mercantile Exchange, as traders priced in higher near-term demand amid an early seasonal temperature drop across major consuming regions.
The surge coincides with a sustained increase in gas flows to export facilities along the U.S. Gulf Coast. According to LSEG data, gas deliveries to the nation’s eight major LNG export plants averaged 16.6 Bcf/d in October, up from 15.7 Bcf/d in September and above the previous monthly record of 16.0 Bcf/d set in April.
On Sunday, LNG feedgas hit an all-time daily high of 17.4 Bcf/d, surpassing the prior record of 17.3 Bcf/d on Saturday. The increase was driven largely by expanded flows to Venture Global LNG’s 3.2-Bcf/d Plaquemines facility in Louisiana, which reached a record 3.9 Bcf/d.
LNG export plants often draw more gas than they liquefy, as a portion of feedgas is used to power compressors and auxiliary systems. Analysts noted that rising export utilization rates are keeping pressure on available domestic supply even as storage inventories remain about 5% above the five-year average for this time of year.
Meanwhile, Lower 48 gas production has averaged 107 Bcf/d in October, slightly below record highs earlier this year but consistent with robust output levels. Demand, including exports, is projected to climb from 108.7 Bcf/d this week to 109.4 Bcf/d next week, according to LSEG forecasts.
While colder temperatures and export strength have boosted short-term prices, traders cautioned that ample storage and high production could limit further upside unless winter weather intensifies.