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US Natural Gas Update: Futures Edge Higher Amid Warm Temperatures, LNG Feedgas Momentum

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US natural gas futures rallied on Friday amid forecasts of warm temperatures and growing LNG export feedgas momentum, which kept prices elevated.

The front-month Henry Hub contract and the continuous contract both rose by 1.06% to $2.944 per million British thermal units. US natural gas futures were set to end the week up by 2.14%, according to data from TradingEconomics.

Hot weather across the Midwest supported prices, with the National Weather Service issuing an Extreme Heat Warning for Chicago and other parts of the region.

The heat is expected to persist more broadly, with above-normal temperatures forecasted across nearly the entire country from September 11 through September 17.

Meanwhile, LNG export feedgas demand continued to pick up pace, at 18.3 billion cubic feet per day in early September, compared to 17.2 bcf/d in August, as major export facilities returned to full operations after entering scheduled maintenance in recent months, according to TradingEconomics.

The US Energy Information Administration released its weekly gas storage report for the week ended August 28 on Thursday, reporting a net injection of 30 Bcf of working gas into storage, bringing total inventories to 3,214 Bcf.

The net build was in line with forecasts at 30 Bcf, but came in below last year's 54 Bcf net injection and the five-year average for this period at 37 Bcf, according to data compiled by Investing.com.

Pinebrook Energy Advisors attributed this to persistent heat, which had "slowed storage growth and narrowed the surplus," and expected continued higher temperatures to keep upcoming storage injections relatively small.

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