US Natgas Prices Stabilize

US natural gas prices steadied around $3.12/MMBtu on Tuesday after a two-day decline, as traders weighed the return of the Mountaineer XPress pipeline in West Virginia against improving LNG export demand and forecasts for continued hot weather. TC Energy lifted the force majeure on Sunday after repairs were completed on the pipeline, which would allow more gas to flow out of the Marcellus/Utica region in the next few days. Meanwhile, the market continues to benefit from rising LNG feedgas demand, with flows to nine major export plants averaging 18 bcfd in September versus 17.3 bcfd in August. Hotter-than-normal weather has also narrowed the storage surplus built up amid strong production and mild spring conditions, with analysts expected inventories to have fallen to 2.4% above normal in the week ended September 25 from 2.9% a week earlier. Meanwhile, Lower 48 output has remained elevated at 112.3 bcfd in September, matching the record monthly high set in August.