Natural Gas Prices Surge on Cooler Weather Forecasts and LNG Export Flows
Natural gas prices surged in India due to forecasts of cooler weather over the next two weeks, which is expected to increase heating demand. According to Kedia Advisory, the price settled up 7.57% at ₹325.3. The rise was also supported by lower daily production and stronger flows toward liquefied natural gas exports.
The US Lower 48 gas output averaged 112.9 bcfd so far in September, above the August monthly record of 112.2 bcfd. However, daily production is expected to decline to an 11-week low of 109.8 bcfd due mainly to weaker output from Louisiana and Pennsylvania.
Natural gas storage increased by 44 Bcf in the week ended September 11, below market expectations of 49 Bcf. Total working gas rose to 3.298 Tcf, with inventories 3.6% below year-earlier levels but 3.7% above the five-year average.
LSEG expects Lower 48 gas demand including exports to decline from 107.8 bcfd this week to 104.1 bcfd next week. The EIA projects US dry gas production to rise from 107.6 bcfd in 2025 to 116.0 bcfd in 2027, while domestic consumption is projected at 94.8 bcfd in 2027.