Average gas flows to the nine big U.S. LNG export plants held at 17.4 bcfd so far in July, the same as in June, remaining below the monthly record high of 18.8 bcfd in April.
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.
Global gas prices have spiked in recent years primarily due to supply disruptions linked to Russia's invasion of Ukraine in 2022 and the U.S. war with Iran in 2026.
Around the world, gas was trading at a 17-week high near $19 per mmBtu at the Dutch Title Transfer Facility benchmark in Europe and at a 14-week high near $20 at the Japan-Korea Marker benchmark in Asia.
Storage seen above normal as weather stays warm
Financial group LSEG said average gas output in the U.S. Lower 48 states rose to 110.3 billion cubic feet per day so far in July from 110.0 bcfd in June, but remained below the monthly record high of 110.6 bcfd in December 2025.
Analysts said mostly mild weather during the spring allowed energy firms to stockpile more gas than usual. As they wait for a federal report on Thursday, analysts projected the amount of gas in storage likely rose to 6.5% above normal during the week ended July 17, up from 6.4% during the previous week.
Meteorologists forecast the weather would remain mostly warmer than normal through August 1, forcing power generators to keep burning lots of gas to keep air conditioners humming. About 40% of U.S. power generation comes from gas-fired plants.
LSEG projected average gas demand in the Lower 48 states, including exports, would hold around 111.5 bcfd for the next few weeks. The forecast for next week was higher than LSEG's outlook on Thursday.
Prices rise on stronger demand outlook and higher oil
U.S. natural gas futures climbed about 2% on Friday on forecasts for more demand next week than previously expected, including an increase in feedgas at Freeport LNG's export plant in Texas after shutting earlier this week.
Gas prices were also pulled higher by a 4% increase in oil futures due to supply disruptions from renewed hostilities between the U.S. and Iran.
Front-month gas futures for August delivery on the New York Mercantile Exchange rose 5.3 cents, or 1.9%, to settle at $2.911 per million British thermal units. On Thursday, the contract closed at its lowest since May 12.
For the week, the front month declined for a fourth week in a row for the first time since February, falling about 1% this week.
UNG•
