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Energy

UPDATE 2-U.S. natgas futures jump to 9-month high as Hurricane Laura cuts output

 (New throughout, updates prices, market activity and comments)
    Aug 27 (Reuters) - U.S. natural gas futures jumped almost 5% to a nine-month high on Thursday as
output fell to its lowest since May due to shutdowns of offshore wells before Hurricane Laura crashed
into the Gulf Coast near the Texas-Louisiana border, and expectations for a third straight day of record
pipeline exports to Mexico.
    Prices jumped despite a drop in liquefied natural gas (LNG) exports to their lowest since February
2019 as Gulf Coast LNG export plants shut and vessels steered clear of the storm, and traders noted that
price gains held after a report showed a storage build in line with estimates.
    Hurricane Laura smashed into the Gulf Coast overnight as a major Category 4 storm with sustained
winds of 150 miles per hour (241 kph), causing over 650,000 power outages in Texas and Louisiana.

    The U.S. Energy Information Administration (EIA) said U.S. utilities injected 45 billion cubic feet
(bcf) of gas into storage in the week ended Aug. 21 -- close to the 47-bcf build analysts forecast in a
Reuters poll and less than an increase of 60 bcf during the same week last year and a five-year
(2015-19) average build of 49 bcf.
    On its last day as the front-month, gas futures for September delivery rose 11.8 cents, or
4.8%, to settle at $2.579 per million British thermal units (mmBtu), their highest close since Nov. 22.
    The October contract, which will soon be the front-month, was up about 14 cents to $2.71 per
mmBtu, which would be the front-month's highest close since Nov. 8.
    On a daily basis, U.S. LNG exports were on track to fall to 2.1 billion cubic feet per day (bcfd),
their lowest since February 2019 after Cheniere Energy Inc and Cameron LNG shut their export
plants in Louisiana.
    U.S. output, meanwhile, was on track to drop to a three-month low of 85.4 bcfd, according to
preliminary data from Refinitiv.
            
                                       Week ended      Week ended    Year ago   Five-year   
                                          Aug 21          Aug         Aug 21     average    
                                        (Forecast)     14(Actual)                 Aug 21    
 U.S. natgas storage (bcf):                +47            +43          +60         +49 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                              9              6            4           10           12
 U.S. GFS CDDs                             182            195          179         168          150
 U.S. GFS TDDs                             191            201          183         178          162
                                                                                            
 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              88.6           86.4         86.1        92.7         79.1
 U.S. Imports from Canada                  6.6            7.0          7.1         7.7          8.0
 U.S. LNG Imports                          0.0            0.0          0.0         0.0          0.2
 Total U.S. Supply                         95.2           93.5         93.2       100.4         87.3
 
 U.S. Demand (bcfd)
 U.S. Exports to Canada                    2.0            1.8          1.8         3.1          2.2
 U.S. Exports to Mexico                    5.7            6.2          5.8         5.5          4.4
 U.S. LNG Exports                          4.7            3.8          2.8         6.5          2.0
 U.S. Commercial                           4.5            4.5          4.6         4.5          4.5
 U.S. Residential                          3.5            3.6          3.7         3.6          3.3
 U.S. Power Plant                          41.8           42.4         39.0        33.9         36.6
 U.S. Industrial                           21.6           21.5         21.5        21.5         20.6
 U.S. Plant Fuel                           4.4            4.3          4.3         4.3          4.3
 U.S. Pipe Distribution                    2.1            2.1          2.0         2.1          2.0
 U.S. Vehicle Fuel                         0.1            0.1          0.1         0.1          0.1
 Total U.S. Consumption                    77.9           78.6         75.2        70.0         71.4
 Total U.S. Demand                         90.4           90.4         85.6        85.1         80.0 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)                                         
 Hub                                   Current Day     Prior Day                            
 Henry Hub NG-W-HH-SNL                   2.52           2.54                              
 Transco Z6 New York NG-CG-NY-SNL        2.00           1.69                              
 PG&E Citygate NG-CG-PGE-SNL             3.49           3.50                              
 Dominion South NG-PCN-APP-SNL           1.35           1.28                              
 Chicago Citygate NG-CG-CH-SNL           2.33           2.38                              
 Algonquin Citygate NG-CG-BS-SNL         1.51           1.51                              
 SoCal Citygate NG-SCL-CGT-SNL           4.59           4.85                              
 Waha Hub NG-WAH-WTX-SNL                 1.25           1.44 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)                                       
 Hub                                   Current Day     Prior Day                            
 New England EL-PK-NPMS-SNL             23.00          21.25                              
 PJM West EL-PK-PJMW-SNL                29.25          26.00                              
 Ercot North EL-PK-ERTN-SNL             55.00          30.92                              
 Mid C EL-PK-MIDC-SNL                   23.00          23.50                              
 Palo Verde EL-PK-PLVD-SNL              93.50          122.00                             
 SP-15 EL-PK-SP15-SNL                   85.25          79.25                              
 
 (Reporting by Scott DiSavino;
Editing by Bernadette Baum and David Gregorio)
  
 
 
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