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Energy

UPDATE 2-U.S. natgas futures jump 6% on small storage build, rising LNG exports

 (Adds latest prices)
    Sept 24 (Reuters) - U.S. natural gas futures jumped almost 6% on Thursday on a
smaller-than-expected weekly storage build, a continued decline in output and an increase in liquefied
natural gas (LNG) exports.
    The U.S. Energy Information Administration (EIA) said U.S. utilities injected just 66 billion cubic
feet (bcf) of gas into storage in the week ended Sept. 18.
    That was well below the 78-bcf build analysts forecast in a Reuters poll and compares with an
increase of 97 bcf during the same week last year and a five-year (2015-19) average build of 80 bcf.

    Front-month gas futures rose 12.3 cents, or 5.8%, to settle at a one-week high of $2.248 per
million British thermal units.
    The market has already been extremely volatile this week - prices fell over 10% on Monday and
jumped almost 16% on Wednesday - as traders roll out of front-month October contracts, which expire on
Sept. 28, and into much higher priced November futures.
    Data provider Refinitiv said output in the Lower 48 U.S. states was on track to fall for a second
month in a row to 86.9 billion cubic feet per day (bcfd) in September from 87.5 bcfd in August. That is
well below the all-time monthly high of 95.4 bcfd in November.
    Refinitiv projected demand, including exports, would rise from 82.6 bcfd this week to 85.3 bcfd
next week as LNG exports increase.
    The amount of gas flowing to LNG export plants was on track to reach 5.7 bcfd on Thursday from a
two-week low of 3.9 bcfd on Tuesday as vessels returned to Gulf Coast terminals after Tropical Storm
Beta dissipated.
    Traders said the Cameron LNG export plant in Louisiana will likely return to service around Oct. 8
when the Army Corps of Engineers expects to finish dredging the Calcasieu Ship Channel after Hurricane
Laura.
                                          
                                       Week ended     Week ended    Year ago   Five-year   
                                         Sep 18        Sep 11        Sep 18     average    
                                        (Actual)       (Actual)                  Sep 18    
 U.S. natgas storage (bcf):                +66           +89          +97         +80 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                             58             57           37          52           77
 U.S. GFS CDDs                             91             84          137          91           68
 U.S. GFS TDDs                             149           141          174         143          145
                                                                                           
 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             86.4           85.5         85.4        93.7         79.7
 U.S. Imports from Canada                  5.7           5.5          6.0         8.1          8.1
 U.S. LNG Imports                          0.0           0.0          0.0         0.0          0.1
 Total U.S. Supply                        92.2           91.0         91.4       101.8         87.7
 
 U.S. Demand (bcfd)
 U.S. Exports to Canada                    2.0           2.0          2.0         2.5          2.3
 U.S. Exports to Mexico                    5.8           6.0          6.1         5.8          4.5
 U.S. LNG Exports                          6.9           5.7          6.2         6.1          2.1
 U.S. Commercial                           4.9           5.2          5.3         4.8          4.7
 U.S. Residential                          4.1           4.7          4.8         3.9          3.7
 U.S. Power Plant                         33.8           31.1         33.0        33.8         32.0
 U.S. Industrial                          21.5           21.6         21.8        21.2         20.6
 U.S. Plant Fuel                           4.3           4.2          4.2         4.3          4.4
 U.S. Pipe Distribution                    1.9           1.8          1.9         1.8          1.9
 U.S. Vehicle Fuel                         0.1           0.1          0.1         0.1          0.1
 Total U.S. Consumption                   70.7           68.8         71.1        69.9         67.4
 Total U.S. Demand                        85.4           82.6         85.3        84.3         76.3 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)                                        
 Hub                                   Current Day    Prior Day                            
 Henry Hub NG-W-HH-SNL                  1.74           1.49                              
 Transco Z6 New York NG-CG-NY-SNL       1.28           1.17                              
 PG&E Citygate NG-CG-PGE-SNL            3.75           3.64                              
 Dominion South NG-PCN-APP-SNL          1.25           1.10                              
 Chicago Citygate NG-CG-CH-SNL          1.74           1.50                              
 Algonquin Citygate NG-CG-BS-SNL        1.42           1.30                              
 SoCal Citygate NG-SCL-CGT-SNL          2.88           3.00                              
 Waha Hub NG-WAH-WTX-SNL                1.40           1.07 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)                                      
 Hub                                   Current Day    Prior Day                            
 New England EL-PK-NPMS-SNL             26.00         21.25                              
 PJM West EL-PK-PJMW-SNL                20.75         19.50                              
 Ercot North EL-PK-ERTN-SNL             20.00         17.25                              
 Mid C EL-PK-MIDC-SNL                   26.50         29.75                              
 Palo Verde EL-PK-PLVD-SNL              42.38         35.50                              
 SP-15 EL-PK-SP15-SNL                   38.50         38.50                              
 
 (Reporting by Scott DiSavino; editing by Jonathan Oatis and Marguerita Choy)
  
 
 
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