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US Natural Gas Update: Futures Rise Amid Strong Rebound in LNG Feedgas Flows

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US natural gas futures rose on Tuesday as LNG feedgas flows rebounded after sharp declines over the past week, driven by scheduled maintenance at several major export facilities.

The front-month Henry Hub contract was up 2.55% at $2.981 per million British thermal units, while the continuous contract was up 2.22% at $3.088/MMBtu.

LNG Feedgas flows were expected at 18.37 billion cubic feet per day, compared to the 30-day moving average of 18.06 Bcf, according to the Bloomberg LNG Feedgas Model, marking an uptick as major LNG export facilities come online after their Spring maintenance over the past week.

Total gas demand increased over the past week as temperatures climbed into the 80s and 90s, boosting air conditioning demand, according to NRG Energy, which did not disclose the actual demand figures.

However, the heatwave was short-lived and is already retreating, with southern parts of the country expected to see below-normal temperatures during the first week of June, according to the National Weather Service.

According to Gary Cunningham of Tradition Energy, the increased flow of vessels through the Strait of Hormuz is helping ease pressure on LNG prices, but he continues to expect US gas markets to remain supported above $3 per MMBtu for the remainder of the Summer.

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