FINWIRES · TerminalLIVE
FINWIRES

US Natural Gas Update: Futures Edge Down on Dip in LNG Feedgas Flows

By

US natural gas futures edged lower in after-hours trading on Tuesday as feedgas deliveries to LNG export terminals slowed to their weakest level in several weeks, offsetting support from warmer weather forecasts and stronger domestic demand.

The front-month Henry Hub contract and the continuous contract both fell by 0.28% to $3.17 per million British thermal units.

Estimated net LNG flows to US export terminals totaled 16.9 billion cubic feet per day on Tuesday, down 0.9 Bcf/d from Monday and 7.2% below levels seen a week earlier, according to Barchart, citing data from BNEF. Feedgas volumes fell to their lowest level since May 19.

The decline was largely driven by reduced deliveries to Sabine Pass, where feeder pipeline outages continued to constrain intake, energy consultancy Aegis said. NRG data showed LNG feedgas demand declined for a fourth consecutive day, slipping another 0.1 Bcf/d.

NRG added that LNG feedgas demand continues to ease as vessel arrivals slow, with only one LNG tanker currently headed to China, down from as many as five last week.

Meanwhile, startup challenges at the Golden Pass LNG export project continue to weigh on expectations for export demand.

Limiting losses, weather forecasts pointed to stronger cooling demand in the coming days. Above-normal temperatures are expected to boost air-conditioning use across the Midwest and western US through Jun. 11, Barchart said, citing Tuesday forecasts from Commodity Weather Group.

On the supply side, US dry gas production was estimated at 109.1 Bcf/d on Tuesday, up 1.9% from a year earlier.

Demand across the Lower 48 states reached 69.3 Bcf/d, up 4.8% year over year. Celsius Energy estimated power-sector gas consumption at 23.6 Bcf/d late Tuesday, down 0.3 Bcf/d from Monday but 3 Bcf/d higher than a year ago.

The firm also said average power burn during the seven-day period from May 21 to May 27 was 32.2 Bcf/d, up 3.2 Bcf/d from the same period in 2025, reflecting stronger electricity demand as warmer weather spreads across key population centers.

Related Articles

Commodities

USTR Proposes 25% Tariff on Brazilian Goods for Unfair Trade Practices, Including Ethanol

The US Trade Representative on Monday proposed a 25% tariff on certain Brazilian goods following an investigation into unfair acts, policies, and practices related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption enforcement; intellectual property protection; ethanol market access; and more.Citing Section 301(b) of the Trade Act, the US Trade Representative has proposed responsive action for public comment, while the US continues to engage intensively with Brazil to seek resolution of US concerns, according to the USTR statement."Over the past year, President Trump and I have had several constructive meetings with President Luiz Incio Lula da Silva and his cabinet, which have accelerated in recent weeks," said Ambassador Jamieson Greer.Greer said the two sides continue to have "substantial differences" over how to resolve issues identified in the investigation."I look forward to continuing engagement with the Brazilian Government in advance of the July 15, 2026, statutory deadline for taking responsive action," Greer said.In 2017, Brazil abruptly discontinued its previously balanced tariff treatment of ethanol and has since failed to provide reciprocal tariff treatment for US ethanol exports, according to the USTR statement.USTR will hold a hearing about the proposed action on July 6, 2026.

Commodities

US Crude Inventories Fall for 7th Straight Week, API Says

Data from the American Petroleum Institute revealed Tuesday that US crude oil inventories dropped by 6.75 million barrels in the week ended May 29, following a 2.80-million-barrel draw the previous week, and compared with analysts' estimate of a 3.60-mmbbl decline, according to a Bloomberg-compiled survey.The oil market now awaits the US Energy Information Administration's petroleum inventory report, scheduled for release on Wednesday.

Commodities

Market Chatter: Energy Producers in Venezuela Need to Provide Own Electricity

Energy companies seeking to develop oil and natural gas projects in Venezuela will be required to provide their own electricity generation under proposed regulations aimed at insulating operations from the country's chronically unreliable power grid, Bloomberg reported on Tuesday.Draft regulations for Venezuela's new hydrocarbons law reportedly require companies operating in oil and gas regions to be self-sufficient in power generation and could also permit private firms to supply electricity directly to energy projects, Bloomberg said, citing a copy of the draft circulated in mid-May.The measures mark a significant shift from past policy, effectively requiring new projects to operate independently of the national grid to avoid adding strain to an electricity system weakened by years of underinvestment and maintenance failures.The push gained momentum following the US removal of former President Nicolas Maduro in January, the subsequent easing of US sanctions, and the installation of a new government led by former Vice President Delcy Rodriguez. The political changes have triggered renewed investor interest in the oil and gas sector.The proposed regulations are designed to protect Venezuela's fragile electricity network, where frequent outages disrupt daily life and hinder petroleum production.Oil extraction relies heavily on electric motors that are highly sensitive to fluctuations in grid frequency. When irregularities occur, motors automatically shut down, forcing operators to restart wells either remotely or manually and resulting in production losses.Over 95% of Chevron's (CVX) wells in the Orinoco region depend on the national grid, while fewer than 5% are powered by generators, Bloomberg said.Chevron and the Venezuelan Information Ministry did not immediately respond to' requests for comment.Venezuela relies primarily on hydroelectric generation, supplemented by plants fueled by natural gas and fuel oil.Hydroelectric facilities are currently operating at about 60% of capacity, while thermoelectric plants are producing only 20% of their potential output, Bloomberg said, citing Miguel Lara, an adviser to foreign energy companies and former head of Venezuela's power planning agency.Lara reportedly said 35 power outages were recorded between January and April and estimated the country faces an electricity deficit of between 2,000 and 3,000 megawatts.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$CVX