• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 2 hours Reality catching up with EV forecasts
  • 7 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 1 day 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 6 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 12 days The Federal Reserve and Money...Aspects which are not widely known
Editorial Dept

Editorial Dept

More Info

Premium Content

Natural Gas Prices Under Pressure As Production Climbs

1. Restart of Freeport LNG Remains Uncertain

- Despite market rumors suggesting a restart might be delayed again, Freeport LNG is sticking to its original pledge of resuming production in the second half of January.

- Freeport LNG is the US’ second largest gas liquefaction facility with three trains and a 15 mtpa capacity. Since its explosion in June 2022 overall exports out of the US dropped by 15%.

- The wider gas market increasingly expects the January restart to be delayed after the US Federal Energy Regulatory Commission did not provide a formal reply to Freeport’s assessment report.

- Should Freeport return, feedgas deliveries to liquefaction terminals across the US are expected to increase by some 2 BCf per day, currently trending at 12.3 BCF/d.

2. US Natural Gas Prices Plummet on Overproduction

- US natural gas prices have halved in just under a month, currently trading at $3.7 per mmBtu, as rapidly increasing production is outstripping demand and putting pressure on infrastructure.

- The slump in prices was bolstered by a substantial decline in gas inventories on the back of winter storm Elliott in late December, ending 2022 at 293 bcf, 10% below the 5-year average.

- As the end of winter is set to lower gas demand by March, the rise in gas production will further pressurize prices with Henry Hub futures now in full-blown contango.

- Even after the expected restart of Freeport LNG, structurally…



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News