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US Natural Gas Update: Futures Fall on Bearish Storage Build, Weaker LNG Feedgas Demand

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US natural gas futures extended earlier declines in midday Friday trading, pressured by a bearish government storage report and signs of easing LNG feedgas demand, though losses were partially limited by June weather expectations.

The front-month Henry Hub contract was down 4.11% at $2.893 per million British thermal units, while the continuous contract slipped 4.25% to $3.022/MMBtu.

The move followed data from the US Energy Information Administration showing a storage injection of 101 billion cubic feet for the week ending May 15, above consensus expectations for a 95 Bcf build and higher than the five-year average increase of 92 Bcf for the same period.

The larger-than-expected build reinforced concerns that inventories remain comfortably supplied heading into the summer cooling season.

On the export side, LNG feedgas demand softened from April's record levels amid scheduled maintenance at key facilities. Deliveries to US LNG terminals have fallen to roughly 17 billion cubic feet per day so far in May, down from a monthly peak of 18.8 Bcf/d in April, Trading Economics said.

The decline reflects planned maintenance activity, including works at Golden Pass LNG and Freeport LNG.

Weather forecasts helped cap downside momentum, with expectations for mostly warmer-than-normal conditions through early June, which is expected to support cooling demand and increase power-sector gas burn.

NRG said the Northeast is likely to see a brief cooler spell over the Memorial Day weekend, while most of the country remains mild. It added that June is expected to turn broadly hot across much of the US in the first half of the month.

Sentiment also found some support from trade flow indications. Trading Economics said three US LNG cargoes are scheduled to arrive in China in June, marking the first shipments to the country since February 2025 and suggesting a tentative recovery in spot demand from Asia.

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