NEW YORK: US natural gas futures slid about 3percent to a one-week low on Monday due to a small increase in output and lingering maintenance at liquefied natural gas (LNG) export plants.
Front-month gas futures for July delivery on the New York Mercantile Exchange fell 8.1 cents, or 2.5percent, to USD3.148 per million British thermal units (mmBtu), putting the contract on track for its lowest close since May 27. That price decline occurred even though Freeport LNG’s export plant in Texas was on track to take in more gas on Monday after one of its three liquefaction trains shut down on Saturday.
Financial group LSEG said average gas output in the US Lower 48 states has slid to 109.5 billion cubic feet per day (bcfd) so far in June, down from 109.7 bcfd in May and a monthly record high of 110.6 bcfd in December 2025. Average output so far in June, however, is higher than last week.
Analysts said mild weather during the spring allowed energy firms to stockpile more gas than usual. But they noted recent output declines likely reduced the surplus of gas in inventory to around 5percent above normal during the week ended June 5, down from about 6percent above normal in the previous week.
Meteorologists forecast the weather will remain mostly warmer than normal through June 23, which should boost the amount of gas that power generators burn to keep air conditioners humming. About 40percent of US power generation comes from gas-fired plants.
LSEG projected average gas demand in the Lower 48 states, including exports, would rise from 102.7 bcfd this week to 103.3 bcfd next week. The forecast for this week was higher than LSEG’s outlook on Friday, while its forecast for next week was lower.
Average gas flows to the nine big US LNG export plants fell from 17.1 bcfd in May to 16.3 bcfd so far in June due to ongoing spring maintenance at several plants, including ExxonMobil/QatarEnergy’s Golden Pass facility and Freeport LNG’s plant in Texas.
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