US natural gas rises above $2.92 as heat and Freeport LNG boost demand

  • US natural gas prices climbed above $2.92 per MMBtu, reaching a more than five-week high.
  • Lower 48 output averaged about 111.5 bcfd in August, exceeding July's record of 110.7 bcfd.
  • Freeport LNG's return lifted feedgas flows to their highest level since late June.

US natural gas prices climbed above $2.92 per million British thermal units on Monday, reaching their highest level in more than five weeks as forecasts pointed to another period of above-normal temperatures. Heat across parts of the South, East and East Coast was expected to sustain air-conditioning demand and gas use by power generators through mid-September, although one outlook showed fewer cooling-degree days and suggested some moderation. LNG feedgas flows reached their highest level since late June after maintenance ended at Freeport LNG in Texas and the facility returned to service. Strong Lower 48 production remained a constraint, with August output estimated at about 111.5 billion cubic feet per day, above July's record of 110.7 bcfd. Earlier intraday updates had shown October futures at $2.895 and $2.871 per MMBtu, while prospective pipeline capacity also weighed on the market.

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