US Natgas Prices Decline Further

US natural gas prices dropped further to $2.90 per MMBtu, the lowest in seven weeks, amid a milder weather outlook, reduced gas flows to LNG export facilities, and comfortable supply conditions. Forecasts shifted toward cooler temperatures in the coming weeks, likely curbing demand for gas-fired power generation as air-conditioning usage declines. Additionally, Freeport LNG deliveries fell as the exporter began a major maintenance turnaround at its pre-treatment and liquefaction facilities on July 10, which will last until the end of August. Moreover, the latest EIA weekly report showed that domestic gas inventories were 6.6% above the five-year average as of July 3, highlighting a well-supplied market.

US natural gas prices held around $3.0 per MMBtu on Friday after sliding more than 6% in the previous session to a six-week low, amid the prospect of lower gas flows to LNG export facilities as well as data pointing to ample domestic supply. Freeport LNG said that maintenance work at its pre-treatment and liquefaction facilities would begin on July 10 and continue through late August, temporarily reducing feedgas demand. In addition, the EIA reported that energy firms injected 61 Bcf of natural gas into storage for the week ended July 3, widening the inventory surplus over the five-year average to 185 Bcf from 175 Bcf a week earlier. Meanwhile, forecasts for above-normal temperatures through July 23 are expected to keep gas demand from power generators elevated. On the supply side, gas output in the Lower 48 states fell to 109.7 bcfd so far in July, from 110.0 bcfd in June and was below the record monthly high of 110.6 bcfd reached in December 2025.

US natural gas prices dropped more than 6% to $3.01 per MMBtu on Thursday, the lowest level in six weeks, pressured by planned maintenance at Freeport LNG in Texas and a larger-than-expected increase in storage. Freeport LNG said maintenance work at its pre-treatment and liquefaction facilities will begin on July 10, raising concerns about a temporary slowdown in export demand. Also, EIA data showed inventories increased by 61 billion cubic feet in the week ended July 3, above the five-year average build of 51 bcf, reinforcing expectations of comfortable supply. Despite the decline, weather forecasts continue to point to above-normal temperatures through July 23, supporting demand for gas-fired power generation. On the supply side, gas output in the Lower 48 states fell to 109.4 bcfd in July so far, from 110.0 bcfd in June and was below the record monthly high of 110.6 bcfd reached in December 2025.