AVN 64.45 Increased By ▲ 0.28 (0.44%)
BAFL 30.60 Increased By ▲ 0.70 (2.34%)
BOP 4.70 Increased By ▲ 0.07 (1.51%)
CNERGY 3.86 Decreased By ▼ -0.03 (-0.77%)
DFML 13.50 Increased By ▲ 0.15 (1.12%)
DGKC 41.20 Increased By ▲ 0.35 (0.86%)
EPCL 45.80 Decreased By ▼ -1.20 (-2.55%)
FCCL 11.27 Increased By ▲ 0.27 (2.45%)
FFL 5.08 No Change ▼ 0.00 (0%)
FLYNG 5.79 Increased By ▲ 0.02 (0.35%)
GGL 9.90 Increased By ▲ 0.15 (1.54%)
HUBC 63.82 Increased By ▲ 1.87 (3.02%)
HUMNL 5.71 Increased By ▲ 0.06 (1.06%)
KAPCO 27.70 Increased By ▲ 0.12 (0.44%)
KEL 2.14 Decreased By ▼ -0.01 (-0.47%)
LOTCHEM 24.47 Increased By ▲ 0.17 (0.7%)
MLCF 21.21 Increased By ▲ 0.49 (2.36%)
NETSOL 84.50 Increased By ▲ 1.40 (1.68%)
OGDC 87.10 Increased By ▲ 1.05 (1.22%)
PAEL 11.04 Increased By ▲ 0.24 (2.22%)
PIBTL 4.18 Increased By ▲ 0.04 (0.97%)
PPL 76.99 Increased By ▲ 0.80 (1.05%)
PRL 13.61 Decreased By ▼ -0.05 (-0.37%)
SILK 0.87 Decreased By ▼ -0.02 (-2.25%)
SNGP 41.25 Increased By ▲ 0.50 (1.23%)
TELE 5.91 Increased By ▲ 0.03 (0.51%)
TPLP 15.89 Increased By ▲ 0.24 (1.53%)
TRG 112.35 Increased By ▲ 2.25 (2.04%)
UNITY 13.92 Increased By ▲ 0.17 (1.24%)
WTL 1.16 Increased By ▲ 0.01 (0.87%)
BR100 4,025 Increased By 57.6 (1.45%)
BR30 14,382 Increased By 197.7 (1.39%)
KSE100 40,486 Increased By 614.8 (1.54%)
KSE30 15,110 Increased By 212.6 (1.43%)
Follow us

NEW YORK: US natural gas futures edged up about 1% to near a one-week high on Tuesday on forecasts for cooler weather through mid-December than previously expected.

That price increase, however, was limited by forecasts for less gas demand over the next two weeks than previously expected.

In addition to colder weather, which will boost the amount of gas burned to heat homes and businesses, energy traders noted gas demand would also rise in December if Freeport LNG’s liquefied natural gas (LNG) export plant in Texas returns to service, as expected.

Freeport LNG has said it plans to start producing LNG again in mid-December and reach full capacity of about 2.1 billion cubic feet per day (bcfd) in March.

The plant was shut on June 8 due to an explosion caused by inadequate operating and testing procedures, human error and fatigue, according to a report by consultants hired by the company to review the incident and propose corrective actions.

JERA, which buys LNG from Freeport, said it expects the plant to return to service in December.

Freeport LNG, however, has not yet submitted a request to restart the plant to the US Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA), sources familiar with the company’s filings have told Reuters.

There are already a few ships waiting in the Gulf of Mexico to pick up LNG from Freeport - some have been there for weeks - including Prism Brilliance, Prism Diversity and Prism Courage, according to shipping data from Refinitiv.

On its first day as the front-month, gas futures for January delivery was up 6.3 cents, or 0.9%, from where the January contract was trading on Monday to $7.259 per million British thermal units (mmBtu) at 9:01 a.m. EST (1401 GMT) on Tuesday, putting the contract on track for its highest close since Nov. 23.

In the spot market, meanwhile, next-day gas prices at the PG&E Citygate in Northern California rose to their highest since February 2019 for a third day in a row. US gas futures are up about 95% so far this year as much higher global prices feed demand for US exports due to supply disruptions and sanctions linked to Russia’s invasion of Ukraine.

Gas was trading at $39 per mmBtu at the Dutch Title Transfer Facility (TTF) in Europe and $30 at the Japan Korea Marker (JKM) in Asia.

US gas futures lag global prices because the United States is the world’s top producer with all the fuel it needs for domestic use, while capacity constraints and the Freeport outage have prevented the country from exporting more LNG.


Comments are closed.

US natgas futures rise on forecasts

Death toll in Peshawar mosque suicide blast passes 90

Dar meets IMF review mission, apprises it of planned power sector reforms

Intra-day update: rupee sees some improvement against US dollar

Intra-day update: Bull run at PSX, KSE-100 up over 750 points

Pakistan's performance worsens in corruption perception index

Indus Motor to shut down plant for two weeks

Toshakhana case: Islamabad court decides to indict Imran Khan on February 7

Bangladesh secures $4.7bn from IMF as other South Asian countries see delays

Central banks bought the most gold since 1967 last year, WGC says

Talks with IMF team: Doubts exist about Dar-led team’s capability