US natural gas prices rise to $2.94 amid heat and stronger LNG exports

  • US natural gas prices rose to $2.94/MMBtu amid persistent heat and stronger LNG export activity.
  • 18.3 bcfd flowed to nine major LNG export plants in early September.
  • 111.5 bcfd marked record average Lower 48 production in August.

US natural gas prices climbed to $2.94 per MMBtu, their highest level in nearly eight weeks, as hot weather supported demand and LNG (liquefied natural gas) export activity strengthened. Forecasts show mostly above-normal temperatures across the central US through mid-September, which is likely to keep gas-fired power generation elevated. Average flows to the nine major LNG export plants rose to 18.3 bcfd (billion cubic feet per day) in early September from 17.2 bcfd in August after Cheniere Energy’s Corpus Christi facility and Freeport LNG in Texas returned to full operations following maintenance. Tropical Storm Edouard made landfall near the Texas-Louisiana border, but no significant operational disruptions at regional LNG facilities had been reported so far. Meanwhile, Lower 48 production averaged a record 111.5 bcfd in August, up from 110.7 bcfd in July, keeping supply ample and limiting the upside for prices.

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