LNG

Henry Hub cash and bal-summer price are set to soften as additional Texas-to-Louisiana pipeline capacity boosts LNG feedgas flows towards the US Gulf Coast, easing oversupply in Texas.

Global LNG markets have been pretty unphased by last week’s US election results: near-term demand fundamentals are net bearish as traders await the onset of more severe winter weather. Looking at Q1-2025, uncertainty abounds with regards to Egypt’s LNG demand due to insufficient domestic gas production and escalating tensions in the Middle East.

November gas future contract at Henry Hub soared to $2.932/MMBtu after hurricane Helene made landfall with a windspeed of 140mph in Florida’s Big Bend region. Though LNG infrastructure was not impacted, offshore gas production in the US Gulf of Mexico (GOM) fell by nearly 10 bcf as developers took precautions.