EIA: NATURAL GAS STORAGE
A substantial injection of +92 Bcf kept pricing deflated for the near future. Part of that injection came from the almost total shutdown of the Freeport LNG facility due to maintenance issues.
The facility, the second largest on the Gulf Coast, has a capacity of 2.6 Bcf/d in LNG exports but has not sent any ships in a few weeks. Last week, the first LNG tanker left, and the resumption of exports could take up to 18-19 Bcf from injections in the following weeks.
WEATHER: 6-10 DAY AND 8-14 DAY OUTLOOK
The recent weather conditions, characterized by very mild weather across the country, have significantly impacted the natural gas market. With much of the country ceasing any heat demand and not yet starting cooling demand, the demand for natural gas for power burns has been low. This mild weather has been a critical factor contributing to the current state of the natural gas market.
NATURAL GAS PRODUCTION
Poduction climbed back above 100 Bcf/d after resting below 100 Bcf/d for the last month. This is likely part of a downward cycle. Warmer temperatures will eventually mean more power burn demand, and the demand for LNG from Europe should also increase in the next few weeks.
ELECTRICITY: FORWARD POWER PRICES
Electricity pricing in the AD Hub and PJM West Hub has stayed fairly steady for 2025, but it did jump almost $10.00 per MWh in late March and early April before coming back down in recent weeks.
As we approach 2025, 2026 is beginning to separate from future years, and the price begins to resemble what it was in 2025, which is closer to $47.00 per MWh in the PJM AD Hub and $52.00 in the PJM West Hub.
NYMEX CALENDAR STRIPS
TOTAL NATURAL GAS DEMAND WITH EXPORTS
NATURAL GAS: ANNOTATED PROMPT MONTH PRICING WITH NOTABLE EVENTS
