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NYMEX Natural gas plunged to weekly low

U.S. natural gas futures fell more than 5.00 percent last week and continued trading under pressure as the U.S. natural gas supplies remained above average as the winter season about to end. Meanwhile, the possibility of export demand offered some support for the prices.

US natural gas consumption reaches 5-year lows in January and February 2023

U.S. natural gas consumption in both January and February reached its lowest levels since 2018, averaging 104.4 billion cubic feet per day in January 2023 and 103.0 Bcf per day in February 2023, according to Energy Information Administration’s ShortTerm Energy Outlook (STEO). Consumption in January was 10% lower than in January 2022 and 5% lower than the five-year average for January. February natural gas consumption was 6% lower than in February 2022 and 3% lower than the five-year average for February. Natural gas consumption in the residential and commercial sectors, which was 18% lower in January and 12% lower in February than in the same months in 2022, drove the decrease in overall natural gas consumption. Consumption was low because of above-average temperatures in those months, particularly in the regions where natural gas consumption makes up a large share of fuel used for space heating.

China Gas Holdings signs two 20-year LNG supply deals with Venture Global

China Gas Holdings, one of China's largest independent gas distributors, has agreed to two 20-year liquefied natural gas (LNG) supply contracts with U.S. exporter Venture Global, adding to a flurry of deals signed between China and the U.S. since 2021. China Gas Holdings, via its wholly owned subsidiary China Gas Hongda Energy Trading Co, would buy a total of two million tonnes per year of LNG from Venture Global under the two contracts, the company said in a statement. Supply expected to begin by begin in 2027. The LNG would come from two Venture Global projects in Louisiana - Plaquemines LNG and the CP2 LNG. China Gas said it would receive 1 million tonnes of LNG annually from each project

U.S. Natural Gas storage change

The Energy Information Administration reported that the utilities pulled 72 billion cubic feet (bcf) of gas from the underground storage in U.S. during the week ended March 17. The total working natural gas storage at underground facilities are 1900 billion cubic feet. The storage level is 36.1% above the level seen at same period a year ago, and 22.7% higher than 5 year average.

NYMEX Natural Gas: Moderate weakness is expected as the trades remain below 2.30 region. Whereas a strong rebound above same region may strengthen the prices.

MCX Natural Gas: Mild weakness may prevail as long as it sustain below 205 region. A rebound above the same level could improve sentiments in prices.

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