US natural gas futures rose in midday trading Monday as hotter-than-expected weather forecasts pointed to stronger cooling demand, boosting power-sector gas use, while the end of maintenance at Freeport LNG lifted feedgas flows, pushing prices higher.
The front-month Henry Hub contract and the continuous contract both rose 1.73% to $2.93 per million British thermal units.
Forecasts indicated hotter conditions in the coming weeks, potentially boosting gas demand from power plants as consumers increase air-conditioning use, according to a Bloomberg report, citing Natgasweather.com.
Forward prices also moved higher across the curve, with calendar strips for 2027 and beyond gaining between $0.01/MMBtu and $0.02/MMBtu, NRG Energy said.
Gains were likely limited by robust production over the weekend, with output reaching near-record levels for the year, according to Bloomberg.
Lower-48 dry gas production stood at roughly 114.6 billion cubic feet per day on Monday, up 5.9% from a year earlier, while total Lower-48 gas demand was about 78.4 Bcf/day, up 17.8% over the year, Bloomberg said.
Separately, US natural gas production rose to 109.8Bcf/d over the weekend, while total demand ranged between 84.5 Bcf/d and 89.5 Bcf/d, according to NRG Energy.
Power-sector gas demand increased to 51 Bcf/d from 47 Bcf/d, while LNG feedgas demand rose to 18 Bcf/d from 16.5 Bcf/d, NRG Energy said.
Gas flows to LNG export terminals reached about 19.6 Bcf/day Monday, up 15.8% from the prior week and the highest level since late June, as maintenance wrapped up at the Freeport LNG facility in Texas last week, Bloomberg said. The site's return from repair work has added to feedgas demand.
Cheniere Energy (LNG) said Monday it substantially completed its Corpus Christi Liquefaction Stage 3 project in Texas, marking another expansion of US LNG export capacity.
Price: $287.38, Change: $+5.05, Percent Change: +1.79%