US Natural Gas Update: Futures Slip as LNG Feedgas Flows Sink to Lowest Level in Months
US natural gas futures were down on Wednesday, after LNG export feedgas flows dropped to their lowest level in months this week.The front-month Henry Hub contract and the continuous contract were both down by 1.57% at $3.065 per million British thermal units.This comes after feedgas flows hit 15.1 billion cubic feet on Tuesday, the lowest level since January, according to a Reuters report, citing data from LSEG.In May, average gas flows to liquefaction plants have dropped to 16.9 Bcf per day, compared to a historic high of 18.8 Bcf per day in April. This has been attributed to spring maintenance turnarounds at several leading LNG facilities across the country.This was despite the Golden Pass LNG terminal in Texas resuming partial operations, adding 0.3 Bcf per day in additional flows.At the same time, production is expected to increase on Wednesday, to 107.3 Bcf per day, following declines over the past week, according to NRG Energy, adding to the bearish momentum.On the bullish front, most parts of the country are expected to see above-normal temperatures from May 27 to June 2, according to the National Weather Service, leading to increased air conditioning power demand part-derived from gas.