US natgas prices climb 3% to 4-week high on forecasts for demand to spike in late June

ReutersJun 6, 2025 7:09 PM

Gas futures up 10% for week on higher demand in late June
Storage injections over 100 bcf for six weeks in a row
LNG feedgas expected to spike in late June

By Scott DiSavino

June 6 (Reuters) - U.S. natural gas futures climbed about 3% to a four-week high on Friday on expectations hot weather will soon prompt businesses crank up air conditioners, boosting demand for gas-fired power even as some liquefied natural gas (LNG) export plants exit maintenance outages.

Gas futures NGc1 for July delivery on the New York Mercantile Exchange rose 10.7 cents, or 2.9%, to settle at $3.784 per million British thermal units, their highest close since May 9.

For the week, the contract was up about 10% after gaining about 3% last week.

The last time energy firms added 100 bcf or more gas into storage for seven weeks in a row was in June 2014, according to federal energy data going back to 2010.

SUPPLY AND DEMAND

Financial firm LSEG said average gas output in the Lower 48 U.S. states fell to 104.8 billion cubic feet per day so far in June from 105.2 bcfd in May and a monthly record high of 106.3 bcfd in March. The reduction so far this month, however, was smaller than previously projected.

Meteorologists projected weather across the Lower 48 states would remain mostly warmer than normal through June 21.

LSEG forecast average gas demand in the Lower 48, including exports, will rise from 95.4 bcfd this week to 97.7 bcfd next week and 100.4 bcfd in two weeks. The forecasts for this week and next were similar to LSEG's outlook on Thursday.

The average amount of gas flowing to the eight big U.S. LNG export plants fell to 13.8 bcfd so far in June, down from 15.0 bcfd in May and a monthly record high of 16.0 bcfd in April.

Traders said LNG feedgas reductions since April were primarily due to spring maintenance, including work at Cameron LNG's 2.0-bcfd plant in Louisiana and Cheniere Energy's LNG.N 4.5-bcfd Sabine Pass in Louisiana and 3.9-bcfd Corpus Christi in Texas, and short, unplanned unit outages at Freeport LNG's 2.1-bcfd plant in Texas on May 6, May 23, May 28 and June 3.

With maintenance reducing flows to Sabine, the nation's biggest LNG export plant, and as new units enter service at Venture Global LNG's VG.N 3.2-bcfd Plaquemines in Louisiana, the country's newest plant, the amount of gas expected to flow to each facility was on track to reach around 2.8 bcfd on Friday - a 23-month low for Sabine and an all-time high for Plaquemines.

Energy traders have noted that LNG maintenance would likely continue through early- to mid-June at Cameron and late-June at Sabine.

	Week ended Jun 6 Forecast	Week ended May 30 Actual	Year ago Jun 6	Five-year average Jun 6
U.S. weekly natgas storage change (bcf):	+105	+122	+77	+87
U.S. total natgas in storage (bcf):	2,703	2,598	2,963	2,568
U.S. total storage versus 5-year average	+5.3%	+4.7%


Global Gas Benchmark Futures ($ per mmBtu)	Current Day	Prior Day	This Month Last Year	Prior Year Average 2024	Five-Year Average (2019-2023)
Henry Hub NGc1	3.73	3.68	2.81	2.41	3.52
Title Transfer Facility (TTF) TRNLTTFMc1	12.03	12.24	10.87	10.95	15.47
Japan Korea Marker (JKM) JKMc1	12.42	12.37	12.30	11.89	15.23


LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days
Two-Week Total Forecast	Current Day	Prior Day	Prior Year	10-Year Norm	30-Year Norm
U.S. GFS HDDs	9	9	10	18	18
U.S. GFS CDDs	172	170	160	143	140
U.S. GFS TDDs	181	179	170	161	158

LSEG U.S. Weekly GFS Supply and Demand Forecasts
	Prior Week	Current Week	Next Week	This Week Last Year	Five-Year (2020-2024)Average For Month
U.S. Supply (bcfd)
U.S. Lower 48 Dry Production	105.4	104.9	104.7	101.2	96.8
U.S. Imports from Canada	8.0	7.5	7.4	N/A	7.3
U.S. LNG Imports	0.0	0.0	0.0	0.0	0.0
Total U.S. Supply	113.4	112.4	112.2	N/A	104.1

U.S. Demand (bcfd)
U.S. Exports to Canada	1.6	1.7	1.8	N/A	2.3
U.S. Exports to Mexico	7.4	7.4	7.4	N/A	6.3
U.S. LNG Exports	15.1	13.5	13.9	13.2	9.1
U.S. Commercial	5.0	4.7	4.5	4.5	4.8
U.S. Residential	4.8	4.1	3.7	3.8	4.3
U.S. Power Plant	31.6	34.5	37.0	37.0	38.0
U.S. Industrial	22.4	22.3	22.1	21.6	21.5
U.S. Plant Fuel	5.2	5.2	5.2	5.2	5.2
U.S. Pipe Distribution	1.9	1.9	2.0	1.9	2.8
U.S. Vehicle Fuel	0.1	0.1	0.1	0.1	0.2
Total U.S. Consumption	71.0	72.9	74.7	74.1	76.8
Total U.S. Demand	95.0	95.4	97.7	N/A	88.2

N/A is Not Available

U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam (Fiscal year ending Sep 30)	2025 Current Day % of Normal Forecast	2025 Prior Day % of Normal Forecast	2024 % of Normal Actual	2023 % of Normal Actual	2022 % of Normal Actual
Apr-Sep	79	79	74	83	107
Jan-Jul	80	80	76	77	102
Oct-Sep	82	81	77	76	103


U.S. weekly power generation percent by fuel - EIA
	Week ended Jun 6	Week ended May 30	2024	2023	2022
Wind	10	10	11	10	11
Solar	8	8	5	4	3
Hydro	8	8	6	6	6
Other	1	1	1	2	2
Petroleum	0	0	0	0	0
Natural Gas	40	39	42	41	38
Coal	15	15	16	17	21
Nuclear	19	19	19	19	19

SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub	Current Day	Prior Day
Henry Hub NG-W-HH-SNL	2.86	2.80
Transco Z6 New York NG-CG-NY-SNL	1.88	2.15
PG&E Citygate NG-CG-PGE-SNL	3.17	3.35
Eastern Gas (old Dominion South) NG-PCN-APP-SNL	1.76	1.98
Chicago Citygate NG-CG-CH-SNL	2.71	2.77
Algonquin Citygate NG-CG-BS-SNL	2.73	4.35
SoCal Citygate NG-SCL-CGT-SNL	3.49	3.63
Waha Hub NG-WAH-WTX-SNL	1.68	1.59
AECO NG-ASH-ALB-SNL	0.91	0.62

ICE U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub	Current Day	Prior Day
New England E-NEPLMHP-IDX	41.17	56.74
PJM West E-PJWHDAP-IDX	46.09	49.77
Mid C W-MIDCP-IDX	44.49	50.26
Palo Verde W-PVP-IDX	39.46	40.11
SP-15 W-SP15-IDX	22.82	24.03

For gas data on the LSEG terminal type ENERGY in the search bar and then go to the GAS drop down and the NORTH AMERICA drop down.

For Interactive Map, type 'Interactive Map' in the box at upper left of the LSEG terminal

For graphics on Baker Hughes rig counts, see: http://graphics.thomsonreuters.com/15/rigcount/index.html

For next-day SNL U.S. gas prices, see: 0#SNL-NG

For next-day SNL U.S. power prices, see: 0#SNL-PWR

For U.S. natgas price and storage polls, see: NGAS/POLL

For U.S. nuclear power outages, see: NUKE/

For U.S. Northwest hydro power report, see: NWRFC

For U.S./Canada natural gas rig count vs Henry Hub futures price, see: http://tmsnrt.rs/2eT9k44

For the U.S. natural gas speed guide, see: USGAS

For the U.S. power speed guide, see: USPOWER

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