Articles tagged natural gas production

Federal Reserve (Fed) policymakers left their benchmark interest rate unchanged and near the highest level of this century – where it has held since mid-2023 – amid lingering inflation worries.

The U.S. Energy Information Administration (EIA) on Thursday reported a 7 Bcf injection into natural gas storage facilities for the week ended March 15, heaping additional pressure on natural gas futures.

April Nymex natural gas futures extended gains Tuesday with bulls feeding on near-term weather forecasts that would support a bump in demand and a pullback in the widening of natural gas storage surpluses.

Natural gas futures pulled back from early highs, still ending the week’s opening session with a gain as near-term cold weather that could prevent surpluses in natural gas inventories from widening further offered some support.

Natural gas futures fell Friday, tripped up by warmer forecasts for late March and additional work at the Freeport LNG terminal that could offset volume gains from a restart of its third train.

• Natural gas futures dropped sharply midday amid speculation over potential repairs at Freeport LNG terminal
• April Nymex contract climbed to near $1.720/MMBtu before sell-off kicked in around 12:40 p.m. ET
• Front month off 8.6 cents to $1.655 as of 2:28 p.m. ET
• Per Bloomberg report: Freeport Train 3 restarting, but repairs expected for liquefied natural gas export facility’s other two trains
• “It’s possible selling accelerated on reports Freeport LNG maintenance would carry over to other trains to delay full operations further”
• Pipeline flows to Freeport well below capacity at 769,760 Dth/d for Friday, according to NGI’s LNG Export Tracker
• Cash prices climb off lows as chills seen reaching eastern Lower 48 into early next week, NGI’s MidDay Price Alert data show
• Lower 48 weather pattern “set to change as strong ridging builds over the Northwest/Western Canada this weekend, promoting a trough downstream across the Eastern half,” according to Maxar meteorologist Brad Harvey
• A “brief round” of much below normal temperatures predicted for Midwest and South, Harvey said on Enelyst
• Southeast Regional Avg. up 10.5 cents to $1.310, per MidDay Price Alert

Natural gas futures found fresh footing Thursday, supported by a weekly storage report that slightly beat estimates and signs that the Freeport LNG export terminal may be preparing to restart its third train.

Natural gas futures fell Wednesday, pressured lower by weak near-term fundamentals sending cash prices to new lows and a looming government storage report Thursday that could show a bearish early season build.

What remains of the official natural gas inventory withdrawal season could be limited by the possible net injection into natural gas stocks for the week of March 8. Amid already swollen natural gas supplies, an early injection, although not unprecedented, could send natural gas prices reeling.

SilverBow Resources Inc.’s board plans to “carefully review and consider” a proposal from activist investor Kimmeridge Energy Management LLC to merge its natural gas production subsidiary in a tie-up that could become the largest South Texas exploration and production company.