US Natgas Prices Fall for 3rd Session

US natural gas prices slipped more than 2% to around $3.04 per MMBtu on Tuesday, marking a third consecutive decline as forecasts pointed to limited heating and cooling demand. The NOAA’s latest outlook calls for mostly near-normal temperatures across the eastern US over the next two weeks, reducing expectations for a significant increase in gas-fired power consumption. Meanwhile, TC Energy lifted force majeure on Sunday after completing pipeline repairs, which should allow additional gas from the Marcellus and Utica shale regions to reach the market. Feedgas deliveries to nine major US export facilities averaged 18 bcfd in September, up from 17.3 bcfd in August. Production has averaged 112.3 bcfd this month, although daily output has recently eased. Analysts estimate inventories were 2.4% above normal in the week through September 25, compared with 2.9% previously.

US natural gas prices steadied around $3.11/MMBtu on Tuesday after a two-day decline, as traders weighed improving LNG export activity and forecasts for continued hot weather against the return of the Mountaineer XPress pipeline in West Virginia. TC Energy has lifted the force majeure on Sunday after repairs were completed on the pipeline, allowing more gas to flow out of the Marcellus/Utica region in the next few days. Meanwhile, the market continues to benefit from rising LNG feedgas demand, with flows to nine major export plants averaging 18 bcfd in September versus 17.3 bcfd in August. Hotter-than-normal weather has also increased air-conditioning demand, narrowing the storage surplus built up amid strong production and mild spring conditions. Analysts expect inventories to have fallen to 2.4% above normal in the week ended September 25, from 2.9% a week earlier. While output remained elevated at 112.3 bcfd so far this month, daily production has been declining.

US natural gas prices fell for a second session to $3.10/MMBtu on Monday, as the market awaited further updates on the Mountaineer XPress pipeline in West Virginia. TC Energy’s Columbia Gas Transmission unit said on Friday that crews were working to resolve the issue as quickly as possible after declaring force majeure on Thursday due to an unexpected mechanical problem, with the disruption affecting around 1.4-1.8 bcfd of gas flows. Meanwhile, rising LNG feedgas demand continued to provide support, with flows to the nine major export plants averaging 17.9 bcfd in September, up from 17.2 bcfd in August, despite the 0.8-bcfd Cove Point facility being offline for planned maintenance. Hot weather has also started to draw down the storage surplus accumulated amid strong production and mild spring conditions. Although September production remains near record levels at an average of 112.5 bcfd, daily output has been falling primarily due to declines in West Virginia and Texas.