Natural gas futures tumbled in early trading Wednesday after the largest U.S. natural gas producer reaffirmed its 2024 sales volumes, signaling a further unwinding of supply curtailments put in place earlier this year to help balance the market.
The August Nymex contract was down 8.0 cents at $2.107/MMBtu as of 8:35 a.m. ET.
The Appalachian Basin gas producing giant EQT Corp. is keeping its 2024 sales target of 2,100-2,200 Bcfe, nearly all natural gas. The guidance included 180 Bcfe net production curtailments, with 90 Bcfe in the second half of this year.
EQT had curtailed around 1 Bcf/d in late February as gas prices were falling to record inflation-adjusted lows.
Nymex futures sold off after EQT issued its guidance late Tuesday.
EQT management, during a call today to discuss second quarter performance, “may provide another near-term catalyst with questions likely to touch on the possibility of autumn production curtailments,” according to EBW Analytics Group senior analyst Eli Rubin.
Meanwhile, TC Energy Corp.’s ANR Pipeline Co. (ANR) on Tuesday lifted a force majeure on its Lake Arthur Southbound segment in Louisiana. ANR said capacity was back to 1,078 MMcf/d, effective immediately. As of the evening cycle for Wednesday, scheduled nominations remained at around 381 MMcf/d, Wood Mackenzie analyst Alex Sealy said.
In terms of immediate supply trends, updated production samples from Wood Mackenzie showed Lower 48 output at 101.5 Bcf/d on Wednesday. Tuesday was revised 0.9 Bcf/d higher to 102.2 Bcf/d.
On the weather front, Maxar’s Weather Desk six- to 10-day outlook trended slightly cooler for the West with its temperatures expected to be near or slightly below normal in coastal areas.
However, for most other regions, “this will be a warming period” with minimal changes to their forecast, the forecaster said. Above normal temperatures should persist in the Interior West and spread to the Northwest and Northeast late in the period, it said. The Midwest may be hotter than normal while the South could be near normal.
