US Natgas Prices Drop on Profit-Taking

US natural gas prices fell to $3.16 per MMBtu on Friday as traders took profits after prices surged to a 13-week high in the previous session amid supply disruptions in West Virginia. TC Energy’s Columbia Gas Transmission pipeline in Appalachia declared force majeure due to an unexpected mechanical issue, prompting the biggest single-day gain in gas prices since January. The market also remains supported by rising LNG feedgas demand, with flows to the nine major export plants averaging 17.8 bcfd in September, up from 17.2 bcfd in August, even with the 0.8-bcfd Cove Point facility offline for planned maintenance. Meanwhile, EIA data showed inventories rose by 53 Bcf for the week ended September 18, narrowing the storage surplus over the 5-year average to 95 Bcf from 118 Bcf a week ago, as hot weather boosted cooling demand. While September production remains near record levels at an average 112.8 bcfd, daily output has been falling mainly due to declines in Louisiana and West Virginia.