Natural Gas Data for Week Ending August 9th

Abbreviations:

MM = million

M = thousand

Bbl(s) = barrel(s)

Bbl/d = barrel(s) per day

WTI = West Texas Intermediate, the US bench mark crude for world pricing and the bench mark for NYMEX trading

NYMEX = New York Mercantile Exchange, a sub of the Chicago Mercantile Exchange. The NYMEX was once the largest oil, natural gas, and refined products open outcry (energy) exchange in the world

SPR = Strategic Petroleum Reserve, the world's largest supply of emergency crude oil was established primarily to reduce the impact of disruptions in supplies of petroleum products and to carry out obligations of the United States under the international energy program. The federally-owned oil stocks are stored in huge underground salt caverns at four sites along the coastline of the Gulf of Mexico. The sheer size of the SPR (authorized storage capacity of 714MM bbls) makes it a significant deterrent to oil import cutoffs and a key tool in foreign policy. 

Several countries become new liquefied natural gas importers this year

Expect global LNG import capacity (also known as regasification capacity) to expand by 16%, or 22.8 Bcf/d, in 2023‒24 compared with 2022 once all regasification terminals currently under construction are completed. In the first seven months of 2023, three countries—Germany, the Philippines, and Vietnam—began importing LNG for the first time. By the end of next year, Antigua and Barbuda, Australia, Cyprus, and Nicaragua are expected to start importing LNG for the first time, and several more countries are in advanced stages of developing LNG import capacity.

Over the past 10 years (2013‒22), global regasification capacity has grown by 49% (45.8 Bcf/d) to reach 140.0 Bcf/d across 48 countries. By the end of 2024, 55 countries are expected to have LNG regasification terminals.

Prices

· Henry Hub spot price:

The Henry Hub spot price rose 48 cents from $2.43/MMBtu during the report week. The last time the Henry Hub traded above $2.90/MMBtu was on January 25 of this year, when it traded at $3.08/MMBtu.

· Henry Hub futures prices:

The price of the September 2023 NYMEX contract increased 48.2 cents, from $2.477/MMBtu to $2.959/MMBtu yesterday. The price of the 12-month strip averaging September 2023 through August 2024 futures contracts climbed 30.8 cents to $3.472/MMBtu.

· Select regional spot prices:

Natural gas spot prices increased at most major pricing hubs this report week with two exceptions—Algonquin Citygate and SoCal Citygate. Price changes this week ranged from a decrease of $3.81/MMBtu at SoCal Citygate and an increase of $0.54/MMBtu at PG&E Citygate.

Supply and Demand

· Supply:

According to data from S&P Global Commodity Insights, the average total supply of natural gas fell by 0.6% (0.6 Bcf/d) compared with the previous report week. Dry natural gas production decreased by 0.4% (0.4 Bcf/d) to average 102.2 Bcf/d, and average net imports from Canada decreased by 4.4% (0.3 Bcf/d) from last week.

· Demand:

Total U.S. consumption of natural gas fell by 2.9% (2.2 Bcf/d) compared with the previous report week, according to data from S&P Global Commodity Insights. Natural gas consumed for power generation declined by 4.5% (2.1 Bcf/d) week over week. Industrial sector consumption increased by 0.1% (less than 0.1 Bcf/d), and residential and commercial sector consumption declined by 1.8% (0.2 Bcf/d). Natural gas exports to Mexico increased by 0.6% (less than 0.1 Bcf/d). Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 12.1 Bcf/d, or 0.2 Bcf/d lower than last week.

LNG

· Pipeline receipts:

Average natural gas deliveries to U.S. LNG export terminals decreased by 1.4% (0.2 Bcf/d) week-over-week, averaging 12.1 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Texas decreased by 5.0% (0.2 Bcf/d) to

3.8 Bcf/d, while deliveries to terminals in South Louisiana increased by 0.6% (less than 0.1 Bcf/d) to 7.2 Bcf/d. Natural gas deliveries to terminals outside the Gulf Coast were essentially unchanged at 1.1 Bcf/d.

· Vessels departing U.S. ports:

24 LNG vessels with a combined LNG-carrying capacity of 89 Bcf departed the United States between August 3 and August 9, according to shipping data provided by Bloomberg Finance, L.P.

· 8 from Sabine Pass

· 4 each from Cameron, Corpus Christi, and Freeport

· 2 from Calcasieu

· 1 each from Cove Point and Elba Island