US natgas futures ease on lower demand from Freeport and other LNG plants (updated)

US Global Investors

08/05/2026 20:11

US gas output drops as producers like EQT cut supply amid low prices

LSEG projects demand to dip next week before rising with warmer weather

LNG export flows fall, with Freeport LNG in Texas set for reduction

Adds latest prices

By Scott DiSavino

NEW YORK, May 8 (Reuters) - U.S. 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 40% of U.S. electric generation comes from gas-fired power plants.

Front-month gas futures for June delivery NGc1 on the New York Mercantile Exchange fell 1.4 cents, or 0.5%, to settle at $2.755 per million British thermal units (mmBtu).

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

SUPPLY AND DEMAND

LSEG said average gas output in the U.S. Lower 48 states fell to 109.3 billion cubic feet per day so far in May, down from 109.5 bcfd in April and a monthly record high of 110.6 bcfd in December 2025.

On a daily basis, output was on track to drop by 2.0 bcfd over the last four days to a preliminary one-week low of 108.1 bcfd on Friday. Recent output declines were due in part to low spot gas prices that caused some energy firms, like EQT EQT.N, the second-largest U.S. gas producer, to reduce output.

Analysts said mild weather earlier this spring allowed energy firms to inject more gas into storage than usual. But, they noted, recent output declines coupled with near-normal weather and higher demand likely reduced the inventory surplus to around 6% above normal during the week ended May 7 from 7% above during the week ended May 1. EIA/GAS NGAS/POLL

Meteorologists forecast the weather will remain mostly near normal through May 23 with cooling demand starting to overtake heating demand.

LSEG projected average gas demand in the Lower 48 states, including exports, would drop from 99.3 bcfd this week to 98.3 bcfd next week before rising to 99.6 bcfd in two weeks. The forecast for this week was lower than LSEG's outlook on Thursday.

Average gas flows to the nine big U.S. LNG export plants fell to 17.2 bcfd so far in May, down from a monthly record of 18.8 bcfd in April.

Week ended May 8 Actual
Week ended May 1 Actual
Year ago May 8
Five-year average (2021-2025) May 8
U.S. weekly natgas storage change (bcf):
+79
+63
+109
+84
U.S. total natgas in storage (bcf):
2,284
2,205
2,239
2,150
U.S. total storage versus 5-year average
+6.2%
+6.7%
Global Gas Benchmark Futures ($ per mmBtu)
Current Day
Prior Day
This Month Last Year
Prior Year Average 2025
Five-Year Average (2021-2025)
Henry Hub NGc1
2.82
2.77
3.46
3.62
3.79
Title Transfer Facility (TTF) TRNLTTFMc1
15.31
14.72
11.68
11.94
18.51
Japan-Korea Marker (JKM) JKMc1
16.84
16.85
11.83
12.24
18.12
LSEG U.S. Global Forecast System (GFS) Heating, Cooling and Total Degree Days
Two-Week Total Forecast
Current Day
Prior Day
Prior Year
10-Year Norm
30-Year Norm
U.S. GFS Heating Degree Days (HDD)
58
62
55
81
71
U.S. GFS Cooling Degree Days (CDD)
91
88
71
69
71
U.S. GFS Total Degree Days (TDD)
149
150
126
150
142
LSEG U.S. Weekly GFS Supply and Demand Forecasts
Prior Week
Current Week
Next Week
This Week Last Year
Five-Year (2021-2025) Average for Month
U.S. Supply (bcfd)
U.S. Lower 48 Dry Production
108.2
109.5
109.5
105.1
100.1
U.S. Imports from Canada
6.8
6.4
6.8
N/A
7.3
U.S. LNG Imports
0.0
0.0
0.0
0.0
0.0
Total U.S. Supply
115.0
115.9
116.3
N/A
107.4
U.S. Demand (bcfd)
U.S. Exports to Canada
2.1
2.6
2.7
N/A
2.4
U.S. Exports to Mexico
6.6
6.8
6.9
N/A
6.5
U.S. LNG Export Feedgas
18.2
17.0
17.2
14.7
12.9
U.S. Commercial
6.7
6.4
5.8
5.9
5.9
U.S. Residential
7.9
7.2
6.0
6.5
6.3
U.S. Power Plant
31.7
29.1
30.1
31.2
30.6
U.S. Industrial
22.4
22.6
22.2
22.7
22.0
U.S. Plant Fuel
5.3
5.4
5.4
5.4
5.2
U.S. Pipe Distribution
2.0
1.9
1.9
2.0
2.8
U.S. Vehicle Fuel
0.1
0.1
0.1
0.1
0.2
Total U.S. Consumption
76.2
72.9
71.5
73.8
73.0
Total U.S. Demand
103.1
99.3
98.3
N/A
94.8
N/A = Not Available
U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam (fiscal year ending September 30)
2026 Current Day % of Normal Forecast
2026 Prior Day % of Normal Forecast
2025 % of Normal Actual
2024
% of Normal Actual
2023
% of Normal Actual
Apr-Sep
89
89
76
74
83
Jan-Jul
93
93
78
76
77
Oct-Sep
98
98
80
77
76
U.S. weekly power generation percent by fuel - EIA
Week ended May 8
Week ended May 1
2025
2024
2023
Wind
13
12
11
11
10
Solar
10
8
6
5
4
Hydro
7
7
6
6
6
Other
1
2
1
1
2
Petroleum
0
0
0
0
0
Natural Gas
35
39
40
42
41
Coal
13
14
18
16
17
Nuclear
20
19
18
19
19
SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub
Current Day
Prior Day
This Month Last Year
Prior Year Average 2025
Five-Year Average (2021-2025)
Henry Hub NG-W-HH-SNL
2.70
2.75
3.12
3.52
3.72
Transco Z6 New York NG-CG-NY-SNL
1.95
2.10
2.35
3.53
3.56
PG&E Citygate NG-CG-PGE-SNL
1.46
1.52
2.89
3.42
5.47
Eastern Gas (formerly Dominion South) NG-PCN-APP-SNL
1.98
1.98
2.25
2.79
2.96
Chicago Citygate NG-CG-CH-SNL
2.36
2.49
2.86
3.23
3.60
Algonquin Citygate NG-CG-BS-SNL
2.10
2.19
2.82
6.08
5.04
SoCal Citygate NG-SCL-CGT-SNL
2.17
2.33
2.98
3.60
5.71
Waha Hub NG-WAH-WTX-SNL
-3.35
-3.84
1.34
1.15
2.88
AECO NG-ASH-ALB-SNL
1.02
1.25
1.32
1.13
2.13
Intercontinental Exchange (ICE) U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub
Current Day
Prior Day
This Month Last Year
Prior Year Average 2025
Five-Year Average (2021-2025)
New England E-NEPLMHP-IDX
48.00
60.56
40.31
77.61
61.79
PJM West E-PJWHRTP-IX
49.12
63.81
43.04
60.23
54.47
Mid-Columbia (Mid C) W-MIDCP-IDX
24.37
22.53
39.90
44.81
68.96
Palo Verde W-PVP-IDX
20.64
18.00
29.10
34.82
59.94
South Path-15 (SP-15) W-SP15-IDX
2.20
4.52
17.36
28.44
53.02

 (Reporting by Scott DiSavino; Editing by Alexander Smith and David Gregorio)

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