NYMEX natural gas futures are flat on the day after having been down -$0.07 earlier this morning, and currently trade at $2.65/MMBtu.
The intraday volatility is likely due in part to contract rollover flows. Today also saw a drop in production by -0.5 Bcf/d, but this should prove relatively immaterial by the week’s end as we expect the maintenance-driven U-shaped pattern that production has shown week-over-week for some time now to continue.
LNG feedgas is somewhat bearish today, with feedgas dropping -0.6 Bcf/d. Decreased flows from pipelines providing gas to both the Sabine Pass and Corpus Christi terminals suggests that the overlap of multiple maintenance events is the likely culprit for the drop.
A shipyard belonging to the latter terminal had also scheduled New Fortress Energy’s Pioneer II liquefaction unit to depart today.
Source: Gelber & Associates