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US Natural Gas Update: Futures Edge Lower Amid Bearish Weather Forecasts, LNG Feedgas Flows

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US natural gas futures edged lower on Tuesday due to moderating weather forecasts, weak LNG feedgas flows, and a tropical storm expected to weigh on demand.

The front-month Henry Hub contract and the continuous contract both fell by 0.14% to $2.856 per million British thermal units.

Temperatures across the northwestern and northeastern regions of the country are expected to be below-normal, while above-normal forecasts blanket the rest of the country from July 28 through August 03, according to the National Weather Service.

However, this week, temperatures across major Texas cities are expected to soar past 110 to 115 degrees Fahrenheit, with power demands across the ERCOT region set to hit a new all-time record, along with heightened demand for gas-fired generation, according to Gary Cunningham of Tradition Energy.

Meanwhile, Tropical Storm Bertha, which is set to hit coastal areas of Louisiana and Texas, along with key LNG shipping routes, should weigh on demand in the near-term, Cunningham said.

LNG export feedgas flows are expected to remain below average, at 17.98 billion cubic feet on Tuesday, compared to the 30-day moving average of 18.46 Bcf/d, according to the Bloomberg LNG Feedgas Model.

This is primarily due to the Freeport LNG facility in Texas undergoing scheduled maintenance, which is set to last until late August.

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