(Adds latest prices, sentence on storm)
June 3 (Reuters) - U.S. natural gas futures climbed on Wednesday ahead of a storm that could disrupt
Gulf Coast production and as liquefied natural gas (LNG) exports edge up with gas prices rocketing
higher in Europe.
After dropping to record lows last week, major European gas benchmarks
soared more than 40% over the past three days, driving forwards for September at the Title
Transfer Facility (TTF) in the Netherlands above the U.S. Henry Hub in Louisiana for the first
time since late April.
In the Gulf of Mexico, meanwhile, Tropical Storm Cristobal is expected to sweep across Louisiana's
on- and offshore production areas over the coming weekend.
Front-month gas futures rose 4.4 cents, or 2.5%, to settle at $1.821 per million British
thermal units.
Looking ahead, futures for the balance of 2020 and calendar 2021 were trading
about 23% and 47% over the front-month, respectively, on hopes the economy will snap back as governments
lift coronavirus-linked travel restrictions.
Data provider Refinitiv said average gas output in the U.S. Lower 48 states fell to 88.3 billion
cubic feet per day (bcfd) so far in June, down from a one-year low of 89.3 bcfd in May and an all-time
monthly high of 95.4 bcfd in November.
With the coming of warmer summer weather, Refinitiv projected U.S. demand, including exports, would
rise from 81.0 bcfd this week to 82.0 bcfd next week.
The amount of pipeline gas flowing to U.S. LNG export plants was on track to reach 4.5 bcfd on
Wednesday up from a 13-month low of 3.8 bcfd earlier in the week. That compares with an eight-month low
of 6.4 bcfd in May and a monthly record high of 8.7 bcfd in February.
Analysts said U.S. LNG exports dropped in recent months as buyers cancel cargoes due to the collapse
in European prices.
Week ended Week ended Year ago Five-year
May 29 May 22 May 29 average
(Forecast) (Actual) May 29
U.S. natgas storage (bcf): +110 +109 +118 +103 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 10 11 17 22 21
U.S. GFS CDDs 164 163 127 140 131
U.S. GFS TDDs 174 174 144 162 152
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 88.3 88.6 88.5 89.9 77.5
U.S. Imports from Canada 6.1 6.2 6.6 8.0 7.9
U.S. LNG Imports 0.0 0.0 0.0 0.0 0.1
Total U.S. Supply 94.3 94.8 95.1 97.9 85.5
U.S. Demand (bcfd)
U.S. Exports to Canada 2.1 2.2 2.3 2.2 1.9
U.S. Exports to Mexico 4.8 5.0 4.8 4.8 4.1
U.S. LNG Exports 6.0 5.0 4.6 5.2 1.9
U.S. Commercial 4.6 4.6 4.5 4.6 4.7
U.S. Residential 4.0 4.0 3.8 4.1 4.1
U.S. Power Plant 29.5 32.5 34.1 32.0 31.0
U.S. Industrial 21.2 21.3 21.4 21.4 20.4
U.S. Plant Fuel 4.4 4.4 4.4 4.4 4.5
U.S. Pipe Distribution 1.7 1.8 1.9 1.8 1.9
U.S. Vehicle Fuel 0.1 0.1 0.1 0.1 0.1
Total U.S. Consumption 65.6 68.8 70.2 68.4 66.7
Total U.S. Demand 78.5 81.0 82.0 80.6 74.6 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub Current Day Prior Day
Henry Hub 1.58 1.58
Transco Z6 New York 1.52 1.34
PG&E Citygate 2.59 2.47
Dominion South 1.44 1.32
Chicago Citygate 1.64 1.54
Algonquin Citygate 1.59 1.45
SoCal Citygate 2.44 2.11
Waha Hub 1.49 1.41 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub Current Day Prior Day
New England 22.00 19.50
PJM West 25.50 21.50
Ercot North 28.00 23.00
Mid C 13.39 9.69
Palo Verde 48.38 33.25
SP-15 40.50 35.00
(Reporting by Scott DiSavino; Editing by Cynthia Osterman)
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