US natural gas futures climbed toward $3.9 per million British thermal units (MMBtu), rebounding from an over three-week low, as Freeport LNG’s Texas export plant resumed operations following a lightning strike that forced its shutdown on Monday.
US natgas prices edge up from three-week low
The restart is expected to boost gas flows to LNG export terminals, which have averaged 15.7 billion cubic feet per day (bcfd) so far in March, slightly above February’s record of 15.6 bcfd. The increase is also supported by the ramp-up of new liquefaction units at Venture Global’s 3.2-bcfd Plaquemines LNG plant in Louisiana, enhancing overall export capacity.
Meanwhile, meteorologists predict above-normal temperatures across the Lower 48 states through April 9, which could curb heating demand and allow utilities to inject more gas into storage. Some analysts suggest this could lead to a rare increase in gas stockpiles for March, something not seen since 2012. The potential for higher inventories, coupled with strong production, could temper further price gains in the coming weeks.
On the supply side, natural gas output in the Lower 48 states has risen to an average of 106.0 bcfd so far in March, surpassing February’s record of 105.1 bcfd, reflecting strong production levels despite intermittent weather disruptions. While the market remains supported by export demand, traders are closely watching storage builds and weather forecasts, as any shift toward milder conditions could exert downward pressure on prices.
