US natgas futures edge up on higher LNG export flows

Financial firm LSEG said average gas output in the U.S. Lower 48 states held at **110.7 billion cubic feet per day (bcfd)** so far in August, matching July's monthly record high. Record output and mild spring weather so far this year have allowed energy firms to keep the amount of gas in inventory higher than the five-year (2021-2025) average since March. Analysts projected the amount of gas in storage would ease to **6.6% above normal** during the week ended August 7, down from **6.7% above normal** the previous week, according to estimates ahead of next Thursday's weekly federal inventory report. Gas inventories have remained in surplus despite weeks of above-normal temperatures so far this summer. Meteorologists forecast the weather would remain mostly warmer than normal through August 22, forcing power generators to continue burning significant volumes of gas to keep air conditioners running. About 40% of U.S. power generation comes from gas-fired plants. U.S. natural gas futures edged up on Friday on a small rise in flows to liquefied natural gas (LNG) export plants in recent days. Front-month gas futures for September delivery on the New York Mercantile Exchange rose 2.2 cents, or 0.8%, to **$2.662 per million British thermal units (mmBtu)**. On Thursday, the contract closed at its lowest since April 28. Despite the daily gain, the contract was on track to fall for the seventh consecutive week for the first time since February 2023, shedding about 18% during that time. The 12-month futures strip fell to **$3.09 per mmBtu**, its lowest since November 2024. LSEG projected average gas demand in the Lower 48 states, including exports, would rise from **111.0 bcfd** this week to **114.6 bcfd** next week before falling to **110.0 bcfd** in two weeks. The forecasts for this week and next were lower than LSEG's outlook on Thursday. Average gas flows to the nine big U.S. LNG export plants slid from **17.2 bcfd** in July to **17.0 bcfd** so far in August, due in part to recent reductions at facilities in Texas, including Freeport LNG's **2.4-bcfd** plant and the one **0.8-bcfd** liquefaction train operating at Exxon Mobil's/QatarEnergy's Golden Pass. But with feedgas to Golden Pass on track to hit a record **0.6 bcfd** on Friday, daily flows to all LNG export plants were expected to rise to a four-week high of **17.7 bcfd**. The U.S. became the world's biggest LNG exporter in 2023, surpassing Australia and Qatar, as surging global prices fed demand for more low-cost U.S. gas. Around the world, gas was trading around **$19 per mmBtu** at the Dutch Title Transfer Facility (TTF) benchmark in Europe and **$21 per mmBtu** at the Japan-Korea Marker (JKM) benchmark in Asia.

US natgas futures edge up on higher LNG export flows

Supply stays near record highs

Futures edge higher on LNG export flows

LNG exports expected to rise to a four-week high

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