US Natgas Prices Rise on Strong LNG Demand
US natural gas futures rose almost 5% to $3.46 per million British thermal units on Wednesday, supported by higher flows to liquefied natural gas export plants. Average gas flows to the eight largest US LNG export terminals rose to 18.3 bcfd so far in February, up from 17.8 bcfd in January, approaching December’s record of 18.5 bcfd. The US became the world’s largest LNG exporter in 2023 as global demand surged following supply disruptions linked to Russia’s 2022 invasion of Ukraine. Temperatures are expected to be mostly warmer than normal through February 19, though the Northeast will remain below average for another week. Average gas production in the Lower 48 states edged up to 106.4 bcfd in February from 106.3 bcfd in January. Analysts expect that heavy withdrawals during last week’s Arctic blast reduced storage from about 5% above normal to roughly 1% below normal, maintaining near-term supply pressures.