US natural gas prices eased to $3.16 per MMBtu on Friday as traders locked in profits following a sharp rally to a 13-week high in the previous session, driven by supply disruptions in West Virginia. TC Energy’s Columbia Gas Transmission pipeline in Appalachia had declared force majeure after an unexpected mechanical problem, triggering the largest single-day gain in gas prices since January.
The market remains underpinned by strong LNG feedgas demand. Flows to the nine major US export terminals averaged 17.8 bcfd in September, up from 17.2 bcfd in August, even with the 0.8-bcfd Cove Point facility offline for scheduled maintenance.
On the storage side, EIA data showed inventories increased by 53 Bcf for the week ended September 18, trimming the surplus versus the five-year average to 95 Bcf from 118 Bcf the prior week, as hot weather lifted cooling demand. Although September output is still hovering near record highs at an average 112.8 bcfd, daily production has been declining, led by reductions in Louisiana and West Virginia.
