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U.S. natural gas futures have surged amid record levels of LNG (liquefied natural gas) flows.

  • Writer: Tony Zelinski
    Tony Zelinski
  • 6 minutes ago
  • 2 min read
U.S. natural gas futures have surged amid record levels of LNG
U.S. natural gas futures have surged amid record levels of LNG

📈 Natural gas markets saw a sharp uptick this week, with futures climbing nearly 3% to a one‑week high. The rally was fueled by record flows to U.S. liquefied natural gas (LNG) export plants, colder weather forecasts, and anticipation of a federal storage report showing smaller‑than‑usual withdrawals.


Key Drivers Behind the Surge


  • Record LNG Export Flows: Average gas flows to U.S. LNG export facilities hit a new milestone, reaching 18.9 billion cubic feet per day (bcfd). This surpasses the previous daily record of 18.6 bcfd set earlier in November.

  • Colder Weather Outlook: Meteorologists project below‑normal temperatures across much of the U.S. through early December, boosting heating demand.

  • Storage Trends: Analysts expect energy firms pulled just 2 bcfd from storage during the week ending November 21. That’s far below the five‑year average withdrawal of 25 bcfd, reflecting ample supply and record production.

  • Contract Dynamics: January futures on the NYMEX rose to $4.599 per million British thermal units (mmBtu), marking the highest close since mid‑November.


Supply and Demand Context


  • Production: U.S. output continues to set records, averaging 109.7 bcfd in November, up from 107.4 bcfd in October.

  • Demand Forecasts: LSEG projects total demand, including exports, will rise from 122.6 bcfd this week to 140.1 bcfd next week.

  • Storage Levels: Current inventories stand about 5% above seasonal norms, giving the market a cushion against winter volatility.


Global Market Implications


  • Europe: Prices at the Dutch Title Transfer Facility (TTF) eased to $9.97/mmBtu, reflecting optimism around Russia‑Ukraine peace talks.

  • Asia: The Japan‑Korea Marker (JKM) held firm at $11.13/mmBtu, underscoring steady demand in the region.

  • Golden Pass LNG Project: A commissioning shipment from Qatar is en route to ExxonMobil and QatarEnergy’s Golden Pass facility in Texas, expected to begin producing LNG later this year or early next.


What This Means for Energy Stakeholders


The combination of record production, strong LNG demand, and colder weather is creating a bullish short‑term environment for natural gas. However, the relatively small storage withdrawals highlight the resilience of U.S. supply. For utilities, traders, and industrial consumers, this dynamic suggests:

  • Near‑term price support as winter demand ramps up.

  • Global competitiveness of U.S. LNG exports is expected to be affected, especially with European prices easing.

  • Strategic opportunities for hedging and procurement ahead of peak winter consumption.


💡 Takeaway: The U.S. natural gas market is entering winter with robust supply and unprecedented LNG export flows. While colder weather will drive demand higher, the storage cushion and record output provide stability. Stakeholders should watch upcoming storage reports closely, as they will set the tone for pricing trends into December.




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