On June 2, 2023, natural gas prices closed down at $2.76, a decrease of 0.43%, amid reduced flows to U.S. liquefied natural gas (LNG) export terminals. Feedgas to LNG plants fell to 17.7 billion cubic feet (bcf), down 4.6% week-over-week, due to seasonal maintenance.
The U.S. dry gas production hit 110.6 bcf/day, a 3.9% increase year-over-year, while lower-48 state gas demand was reported at 67.5 bcf/day, a 0.8% increase year-over-year. Despite the current production levels indicating a healthy supply, projections of higher future production are expected to exert downward pressure on prices.
Significant damage to Qatar’s Ras Laffan Industrial City LNG plant, which accounts for about 20% of global supply, and ongoing geopolitical tensions in the Strait of Hormuz threaten global LNG supplies. This could potentially boost U.S. natural gas exports as international shortages rise.
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