US natgas prices climb 3% to 4-week high on forecasts for demand to spike in late June (updated)

OSAKA GAS

06/06/2025 20:09

Gas futures up 10% for week on higher demand in late June

Storage injections over 100 bcf for six weeks in a row

LNG feedgas expected to spike in late June

Adds latest prices

By Scott DiSavino

June 6 (Reuters) - U.S. natural gas futures climbed about 3% to a four-week high on Friday on expectations hot weather will soon prompt businesses crank up air conditioners, boosting demand for gas-fired power even as some liquefied natural gas (LNG) export plants exit maintenance outages.

        Gas futures NGc1 for July delivery on the New York Mercantile Exchange rose 10.7 cents, or 2.9%, to settle at $3.784 per million British thermal units, their highest close since May 9.

For the week, the contract was up about 10% after gaining about 3% last week.

Prices jumped this week even though gas stockpiles were about 5% above normal levels for this time of year and analysts forecast energy firms would make a record-tying triple-digit injection for a seventh week in a row this week. EIA/GAS GAS/POLL

The last time energy firms added 100 bcf or more gas into storage for seven weeks in a row was in June 2014, according to federal energy data going back to 2010.

SUPPLY AND DEMAND

Financial firm LSEG said average gas output in the Lower 48 U.S. states fell to 104.8 billion cubic feet per day so far in June from 105.2 bcfd in May and a monthly record high of 106.3 bcfd in March. The reduction so far this month, however, was smaller than previously projected.

Meteorologists projected weather across the Lower 48 states would remain mostly warmer than normal through June 21.

LSEG forecast average gas demand in the Lower 48, including exports, will rise from 95.4 bcfd this week to 97.7 bcfd next week and 100.4 bcfd in two weeks. The forecasts for this week and next were similar to LSEG's outlook on Thursday.

The average amount of gas flowing to the eight big U.S. LNG export plants fell to 13.8 bcfd so far in June, down from 15.0 bcfd in May and a monthly record high of 16.0 bcfd in April.

Traders said LNG feedgas reductions since April were primarily due to spring maintenance, including work at Cameron LNG's 2.0-bcfd plant in Louisiana and Cheniere Energy's LNG.N 4.5-bcfd Sabine Pass in Louisiana and 3.9-bcfd Corpus Christi in Texas, and short, unplanned unit outages at Freeport LNG's 2.1-bcfd plant in Texas on May 6, May 23, May 28 and June 3.

With maintenance reducing flows to Sabine, the nation's biggest LNG export plant, and as new units enter service at Venture Global LNG's VG.N 3.2-bcfd Plaquemines in Louisiana, the country's newest plant, the amount of gas expected to flow to each facility was on track to reach around 2.8 bcfd on Friday - a 23-month low for Sabine and an all-time high for Plaquemines.

Energy traders have noted that LNG maintenance would likely continue through early- to mid-June at Cameron and late-June at Sabine.

Week ended Jun 6 Forecast
Week ended May 30 Actual
Year ago Jun 6
Five-year average
Jun 6
U.S. weekly natgas storage change (bcf):
+105
+122
+77
+87
U.S. total natgas in storage (bcf):
2,703
2,598
2,963
2,568
U.S. total storage versus 5-year average
+5.3%
+4.7%
Global Gas Benchmark Futures ($ per mmBtu)
Current Day
Prior Day
This Month Last Year
Prior Year Average 2024
Five-Year Average (2019-2023)
Henry Hub NGc1
3.73
3.68
2.81
2.41
3.52
Title Transfer Facility (TTF) TRNLTTFMc1
12.03
12.24
10.87
10.95
15.47
Japan Korea Marker (JKM) JKMc1
12.42
12.37
12.30
11.89
15.23
LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days
Two-Week Total Forecast
Current Day
Prior Day
Prior Year
10-Year Norm
30-Year Norm
U.S. GFS HDDs
9
9
10
18
18
U.S. GFS CDDs
172
170
160
143
140
U.S. GFS TDDs
181
179
170
161
158
LSEG U.S. Weekly GFS Supply and Demand Forecasts
Prior Week
Current Week
Next Week
This Week Last Year
Five-Year (2020-2024)Average For Month
U.S. Supply (bcfd)
U.S. Lower 48 Dry Production
105.4
104.9
104.7
101.2
96.8
U.S. Imports from Canada
8.0
7.5
7.4
N/A
7.3
U.S. LNG Imports
0.0
0.0
0.0
0.0
0.0
Total U.S. Supply
113.4
112.4
112.2
N/A
104.1
U.S. Demand (bcfd)
U.S. Exports to Canada
1.6
1.7
1.8
N/A
2.3
U.S. Exports to Mexico
7.4
7.4
7.4
N/A
6.3
U.S. LNG Exports
15.1
13.5
13.9
13.2
9.1
U.S. Commercial
5.0
4.7
4.5
4.5
4.8
U.S. Residential
4.8
4.1
3.7
3.8
4.3
U.S. Power Plant
31.6
34.5
37.0
37.0
38.0
U.S. Industrial
22.4
22.3
22.1
21.6
21.5
U.S. Plant Fuel
5.2
5.2
5.2
5.2
5.2
U.S. Pipe Distribution
1.9
1.9
2.0
1.9
2.8
U.S. Vehicle Fuel
0.1
0.1
0.1
0.1
0.2
Total U.S. Consumption
71.0
72.9
74.7
74.1
76.8
Total U.S. Demand
95.0
95.4
97.7
N/A
88.2
N/A is Not Available
U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam (Fiscal year ending Sep 30)
2025 Current Day
% of Normal Forecast
2025
Prior Day % of Normal Forecast
2024
% of Normal Actual
2023
% of Normal Actual
2022
% of Normal Actual
Apr-Sep
79
79
74
83
107
Jan-Jul
80
80
76
77
102
Oct-Sep
82
81
77
76
103
U.S. weekly power generation percent by fuel - EIA
Week ended Jun 6
Week ended May 30
2024
2023
2022
Wind
10
10
11
10
11
Solar
8
8
5
4
3
Hydro
8
8
6
6
6
Other
1
1
1
2
2
Petroleum
0
0
0
0
0
Natural Gas
40
39
42
41
38
Coal
15
15
16
17
21
Nuclear
19
19
19
19
19
SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub
Current Day
Prior Day
Henry Hub NG-W-HH-SNL
2.86
2.80
Transco Z6 New York NG-CG-NY-SNL
1.88
2.15
PG&E Citygate NG-CG-PGE-SNL
3.17
3.35
Eastern Gas (old Dominion South) NG-PCN-APP-SNL
1.76
1.98
Chicago Citygate NG-CG-CH-SNL
2.71
2.77
Algonquin Citygate NG-CG-BS-SNL
2.73
4.35
SoCal Citygate NG-SCL-CGT-SNL
3.49
3.63
Waha Hub NG-WAH-WTX-SNL
1.68
1.59
AECO NG-ASH-ALB-SNL
0.91
0.62
ICE U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub
Current Day
Prior Day
New England E-NEPLMHP-IDX
41.17
56.74
PJM West E-PJWHDAP-IDX
46.09
49.77
Mid C W-MIDCP-IDX
44.49
50.26
Palo Verde W-PVP-IDX
39.46
40.11
SP-15 W-SP15-IDX
22.82
24.03


 (Reporting by Scott DiSavino; Editing by Paul Simao and David Gregorio)

 ((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net/))

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NYMEX Henry Hub options and futures combined 0#3CFTC023651

NYMEX Henry Hub futures only 0#1CFTC023651

ICE Henry Hub options and futures combined 0#3CFTC023391

NYMEX Henry Hub swaps options and futures combined 0#3CFTC03565B

NYMEX Henry Hub Penultimate gas swaps 0#3CFTC03565C