US natural gas prices rose more than 2% to $3.20 per MMBtu, extending gains for a third straight session amid expectations of stronger demand driven by warmer weather and firmer LNG export activity. Forecasts call for above-normal temperatures through July 1, which is likely to boost gas consumption by power generators as air conditioning use increases.
At the same time, gas flows to US LNG export terminals climbed 13.2% week-on-week on Monday to a six-week high of 19.3 billion cubic feet per day. Even so, average gas deliveries to the nine major US LNG export facilities have eased to 17.0 bcfd so far in June, reflecting seasonal maintenance at several sites, including ExxonMobil and QatarEnergy’s Golden Pass project, as well as the Freeport LNG plant in Texas.
US Lower 48 gas production has also edged lower, averaging 109.3 bcfd so far in June, down from 109.7 bcfd in May.
