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Over the same period, however, working gas inventories increased by 454 billion cubic feet compared with a prior 10-year average increase of 401 billion cubic feet. No progress was made eliminating excess inventories during the spring quarter. Freeport LNG's re-opened export terminal did not make a significant difference in depleting the excess inventories accumulated during the winter of 2022/23. Unless the summer is unusually hot, boosting gas consumption by electricity generators, excess inventories look set to persist for several more months. As a result, hedge funds and other money managers have been cautious about turning bullish on gas prices.

Persons: John Kemp, Paul Simao Organizations: Climate Prediction Center, CPC, Freeport LNG's, Thomson, Reuters Locations: United States, U.S, Ukraine

The buying came as OPEC+ announced cuts totalling more than 1 million barrels per day on April 2 and after fund managers had already purchased 61 million barrels the previous week. Purchases centred on crude, in both Brent (+73 million barrels) and NYMEX and ICE WTI (+60 million barrels), with small sales of European gas oil (-2 million) and U.S. diesel (-3 million) and no change in U.S. gasoline. CRUDE SQUEEZEWith its surprise announcement, OPEC+ successfully squeezed the shorts in crude petroleum, with bearish positions reduced to the lowest for 11 weeks since late January. Since March 21, funds have purchased a total of 174 million barrels of crude, the fastest rate since December 2019 and before that September 2017. Bearish short positions were cut by 113 million barrels while fund managers added 61 million barrels of new bullish long positions.

Big gas producers including Chesapeake Energy Corp (CHK.O) and Comstock Resources Inc (CRK.N) are reducing their drilling. "About a third of U.S. gas production is associated gas - produced from oil wells," said Jacques Rousseau, a managing director at research firm ClearView Energy Partners LLC. Gas from the Permian also has climbed to record highs every month this year. PRODUCTION REMAINS STICKYU.S. gas production remains on track to hit 100.67 billion cubic feet per day (bcfd) this year, up from last year's record 98.09 bcfd, according to the U.S. government. Despite low gas prices, U.S. drillers have 160 rigs seeking gas up 16% from a year ago, according to data from Baker Hughes Co (BKR.O).

☆ US natgas plunges 15% on less cold forecasts, biggest drop in 8 months
▼ + stars: | 2023-03-06 | by ( ) www.cnbc.com time to read: +4 min

U.S. natural gas futures plunged by about 15% on Monday - its biggest one-day drop in over eight months —on forecasts for much less cold weather and heating demand than previously expected over the next two weeks. "This has translated to ... [gas] demand lost over the forecast period ... With the vast majority of that being [residential and commercial] demand," Gelber said. The gas market is used to huge price swings, which are usually related to changes in weather forecasts. When operating at full power, Freeport LNG, the second-biggest U.S. LNG export plant, can turn about 2.1 bcfd of gas into LNG for export. That compares with a monthly record of 12.9 bcfd in March 2022, before the Freeport LNG facility shut.

After a dearth of plant approvals last decade, developers have secured dozens of long-term contracts to finance new multibillion-dollar LNG plants. The United States was long an importer of LNG, but natural gas discoveries and production from the shale revolution flipped the country into an LNG exporter in 2016. U.S. LNG exports hit 10.6 billion cubic feet per day (bcfd) in 2022, making the country the second biggest LNG exporter behind Australia. But their production volumes will allow the United States to remain ahead of output from Australia and Qatar. The seven U.S. export plants already in service, including Freeport LNG, can turn about 13.8 billion cubic feet of gas into LNG each day.

A total of 95 cargoes carrying LNG departed last month from U.S. ports mainly bound for customers in Europe, which received 68% of exports. In December, U.S. LNG exports had increased to 7.22 million tonnes as producers made an effort to supply as much as possible to Europe. Clients there took 79% of total exports that month. Delays to restart the second-largest U.S. LNG plant, Freeport LNG, after a fire have also created limitations to export the superchilled gas since mid-2022. Freeport LNG on Tuesday asked U.S. regulators for approval to supply natural gas to one of the three idled units at its Texas plant, a milestone in efforts to restore production after a seven-month outage.

☆ Gas flows to Freeport LNG export plant resume, Refinitiv data shows
▼ + stars: | 2023-01-26 | by ( ) www.reuters.com time to read: +1 min

Jan 26 (Reuters) - Freeport LNG's long-shut liquefied natural gas (LNG) export plant in Texas started receiving small amounts of pipeline natural gas on Thursday, Refinitiv data shows. The flows were on track to reach only 22 million cubic feet per day (mmcfd) on Thursday, according to the data. The last time small amounts of gas started flowing to the plant from Jan. 14-19 - the company used it to maintain a flare system, according to sources familiar with the plant. With many analysts expecting the Freeport plant to remain shut until spring when demand for gas for heating will decline, U.S. gas futures fell to a 19-month low. Freeport, the second-biggest U.S. LNG exporter, is important to the gas market because prices and demand will likely rise once the plant restarts.

☆ Gas starts to flow to Freeport LNG export plant in Texas - data shows
▼ + stars: | 2023-01-17 | by ( ) www.reuters.com time to read: +2 min

Jan 17 (Reuters) - Freeport LNG's long-shut liquefied natural gas (LNG) export plant in Texas started receiving pipeline natural gas over the long U.S. Martin Luther King Jr holiday weekend, according to Refinitiv data. Gas started flowing to Freeport on Jan. 14 and was on track to reach 69 million cubic feet per day (mmcfd) on Tuesday, according to data from Refinitiv. Freeport has not yet filed a request with federal regulators to restart the plant, according to a source familiar with the company's filings. Whenever Freeport returns, U.S. gas demand will jump. The plant can turn about 2.1 billion cubic feet per day (bcfd) of gas into LNG, which is about 2% of U.S. daily production.

That outage dropped the United States behind top exporter Australia as global demand for the fuel boomed. In 2022, U.S. exports of natural gas as LNG rose 8% to 10.6 bcfd, just shy of Australia's 10.7 bcfd. The United States remained ahead of Qatar, which in third place shipped 10.5 bcfd, according to data provider Refinitiv. CROWN WITHIN SIGHTHowever, the loss of Freeport LNG's supply at mid-year took away the U.S. chance to take the crown as top exporter in 2022. In 2021, when prices in Asia were higher, just 35%, or about 3.3 bcfd, of U.S. LNG exports went to Europe.

Canada is in the midst of building a large terminal to export LNG, but its completion is two years away. Canadian gas production is on track to reach a record 18 bcfd in 2022 and 19 bcfd in 2023, according to energy consultancy Rystad Energy. Pipelines are also constrained in Canada due to swift production growth, particularly TC Energy Corp's (TRP.TO) NGTL pipeline system that ships gas around and out of western Canada. In August, gas prices in Alberta briefly turned negative because of bottlenecks stemming from NGTL maintenance. U.S. LNG exports are expected to reach 10.6 bcfd in 2022 and 12.3 bcfd in 2023, according to federal estimates.

LNG prices recently have cooled with Europe's gas storage levels rising to over 90% of target capacity and a slow start to winter. In Asia, however, a declaration of force majeure on gas supplies by Malaysian state-energy company Petronas (PETR.KL) has LNG customers in Japan scrambling for alternative cargoes. A total of 88 tankers carrying 6.27 million tonnes of LNG departed in October from U.S. ports, mostly heading to Europe, the data showed. LNG shipments from U.S. ports fell slightly to 6.27 million tonnes in October, with more cargoes going to Asia, where customers of Malaysian liquefied gas scramble to source alternative supplies. The shutdown of the second-largest U.S. LNG export plant has hit many customers, including Japan's biggest LNG buyer, JERA, which last week said it will book a $751-million loss mostly due to higher purchase costs.

☆ U.S. natgas futures drop 10% on profit-taking, mild forecasts
▼ + stars: | 2022-11-01 | by ( ) www.reuters.com time to read: +4 min

Nov 1 (Reuters) - U.S. natural gas futures dropped about 10% on Tuesday, following a 12% rise on Monday as traders took profits during a period of extreme volatility after the latest forecasts called for the weather to remain mild for the next two weeks. Analysts at energy consulting firm Gelber & Associates said the "early week surge in ... gas futures (saw) signs of exhaustion today as profit-takers pile on." Front-month gas futures fell 64.1 cents, or 10.1%, to settle at $5.714 per million British thermal units (mmBtu). Daily output was on track to drop about 4.5 bcfd to a preliminary five-month low of 95.7 bcfd on Tuesday. Last year, just 29%, or about 2.8 bcfd, of U.S. LNG exports went to Europe.

☆ U.S. natgas futures falls 3% on mild weather forecasts
▼ + stars: | 2022-10-28 | by ( ) www.reuters.com time to read: +3 min

Oct 28 (Reuters) - U.S. natural gas futures fell about 3% on Friday on record output and forecasts for mild weather and low heating demand through mid November, which should allow utilities to inject more gas into storage than usual for at least a few more weeks. The market was still waiting for the return of Freeport LNG's export plant in Texas. On its first day as the front-month, gas futures for December delivery fell 19.1 cents, or 3.3%, to settle at $5.684 per million British thermal units (mmBtu). During the first nine months of 2022, roughly 60%, or 6.3 bcfd, of U.S. LNG exports went to Europe, as shippers diverted cargoes from Asia to fetch higher prices. Last year, just 29%, or about 2.8 bcfd, of U.S. LNG exports went to Europe.

Oct 24 (Reuters) - U.S. natural gas futures jumped about 5% after sliding to a fresh seven-month low earlier in the session on a technical rebound and expectations demand would rise as liquefied natural gas (LNG) exports increase once export plants exit maintenance outages in coming weeks. Some traders expect Freeport will return to service in November while others believe the return will be delayed. Front-month gas futures rose 24.0 cents, or 4.8%, to settle at $5.199 per million British thermal units (mmBtu). During the first nine months of 2022, roughly 60%, or 6.3 bcfd, of U.S. LNG exports went to Europe, as shippers diverted cargoes from Asia to fetch higher prices. Last year, just 29%, or about 2.8 bcfd, of U.S. LNG exports went to Europe.

☆ U.S. natgas falls 4% to 3-mth low on mild weather, global price collapse
▼ + stars: | 2022-10-18 | by ( ) www.reuters.com time to read: +4 min

Oct 18 (Reuters) - U.S. natural gas futures fell about 4% on Tuesday to a three-month low as oil and European gas prices dropped and forecasters called for milder U.S. weather over the next two weeks. U.S. gas prices have been declining for eight weeks as record domestic output and reduced liquefied natural gas (LNG) exports have allowed utilities to inject much more gas than usual into storage. Last year, just 29%, or about 2.8 bcfd, of U.S. LNG exports went to Europe. With milder weather coming, Refinitiv projected average U.S. gas demand, including exports, would fall from 101.0 bcfd this week to 95.9 bcfd next week. U.S. LNG exports, however, could start to rise this week if Cove Point returns to service as some traders expect.

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