31.08.202604:04:46UTC+00US Natgas Prices Drop Further

US natural gas prices slipped to $2.87/MMBtu on Monday, extending their pullback from a five-week high as traders assessed the likelihood of rising supply. Energy Transfer LP’s Hugh Brinson Pipeline in Texas is scheduled to enter service on September 1 and will eventually be capable of transporting about 2.2 Bcf/d of natural gas from the Permian Basin to East Texas, potentially boosting domestic gas supplies in Erath, Louisiana. Added to that, output in the Lower 48 states has averaged a record 111.4 bcfd so far in August, up from 110.7 bcfd in July.

Downside pressure, however, was limited by expectations for warmer-than-normal weather. The Commodity Weather Group said Friday that above-average temperatures are forecast across the eastern two-thirds of the US from September 2–11, likely keeping cooling demand strong. At the same time, data showed an increase in gas demand from LNG export facilities, as Cheniere Energy’s Corpus Christi plant and the Freeport LNG terminal in Texas resumed operations following maintenance.