Gas Prices Dip Amid Ongoing Facility Maintenance, Low Storage Looms

Natural gas prices have dipped slightly in recent days, but analysts warn that low European storage and ongoing US LNG facility maintenance could drive prices higher in the coming months.

In Europe, trading firm Mind Energy noted that despite a sharp correction over the past week, natural gas prices remain vulnerable to further increases heading into the heating season. The company cited low inventories in Germany and the Netherlands as well as continued geopolitical uncertainty.

European Union natural gas storage was 70.1% full as of Monday, which is about 176 TWh below the five-year average, according to Gas Infrastructure Europe and NGI calculations.

In the US, deliveries to LNG export terminals were at 18.3 Bcf/d on Wednesday, down from a 30-day average near 18.7 Bcf/d due in part to the start of annual maintenance at Cove Point LNG in Maryland, which removed roughly 0.85 Bcf/d of feedgas demand.