Texas Heat Boosts Natural Gas Futures Amid Freeport Maintenance Headwinds

September natural gas futures surged on August 18, trading at $2.774 per million British thermal units (mmBtu), a 3.12% increase from the previous day's close.

The rally comes as Texas heat is expected to push demand higher, with Houston forecasted to average near 100 degrees Fahrenheit from August 20 through August 23, five degrees above normal.

However, freeport LNG maintenance has kept approximately 2 Bcf per day of export capacity offline since July, piling gas into storage during the summer months when demand is typically lower.

The surplus in storage grew despite the hottest stretch of the summer, with working gas sitting at about 3,153 Bcf as of August 7, roughly 6% to 7% above the five-year seasonal average.