US natural gas rises to $2.94/MMBtu on hotter weather, stronger LNG

US natural gas prices rose to $2.94/MMBtu, the highest in nearly eight weeks, as hot weather persisted and LNG export activity strengthened. Forecasts call for temperatures to stay mostly above normal across the central US through mid-September, which is likely to keep demand for gas-fired power generation elevated. Average gas flows to the nine major LNG export plants increased to 18.3 bcfd in early September from 17.2 bcfd in August after Cheniere Energy’s Corpus Christi facility and Freeport LNG in Texas returned to full operations following maintenance.

Tropical Storm Edouard made landfall near the Texas-Louisiana border, but no significant operational disruptions have been reported so far at LNG facilities in the region. On the supply side, production in the Lower 48 states averaged a record 111.5 bcfd in August, up from 110.7 bcfd in July, keeping the market well supplied and limiting the upside for prices.