-- US natural gas futures prices extended losses in after-hours trade on Friday amid slower feedgas flows to LNG terminals, after earlier gains following US government data showing a smaller-than-expected inventory build.
Both the front-month Henry Hub futures contract and the continuous contract edged down by 0.69% to $2.75 per million British thermal units.
Prices dipped as less natural gas was used in the export system, leaving more floating around in the domestic US.
Feedgas flows to LNG export terminals slowed by 4.6% from last week to 17.7 billion cubic feet on Friday, Barchart said, citing BNEF data. LNG feedgas had recently reached peak levels of about 20 Bdf per day but declined due to ongoing maintenance and operational constraints at several terminals, including Corpus Christi, Cameron, and Calcasieu Pass.
Some of the deficit was offset by increased flows to the Golden Pass facility as it continues to ramp up and has recently reached record output levels during commissioning, Gelber & Associates said.
A total of 30 vessels left the US carrying 115 Bcf in the week ended May 6, down five vessels and 18 Bcf from the previous week, the US Energy Information Administration said.
On Thursday, prices rose after the EIA said net injections into storage totaled 63 Bcf for the week ending May 1, below analyst expectations of 72 to 80 Bcf. The build was also significantly smaller than the five-year average of 77 Bcf and last year's net injection of 104 Bcf during the same week.
Thursday's total put stocks at 2,205 Bcf, 139 Bcf, or 7% above the five-year average and 75 Bcf, or 4% more than last year at this time.
Production was pegged at 110.6 Bcf/d, up nearly 4% from year-ago levels and demand was 0.8% stronger than it was a year ago at 67.5 Bcf/d.