US natgas futures ease on lower demand from Freeport, other LNG plants

NEW YORK: US natural gas futures eased on Friday on lowered demand forecasts for this week and a drop in gas flows to liquefied natural gas (LNG) export plants so far this month, including an upcoming reduction at Freeport LNG in Texas.

Lending some support to prices was a decline in output in recent weeks and forecasts for warmer weather in late May that could boost demand for gas-fired electricity as homes and businesses crank up their air conditioners.

About 40percent of US electric generation comes from gas-fired power plants. Front-month gas futures for June delivery on the New York Mercantile Exchange fell 1.4 cents, or 0.5 percent, to settle at USD2.755 per million British thermal units (mmBtu).

For the week, the contract was down about 1percent after gaining about 10percent last week.