US LNG Netbacks Peak Amid Iran War Tensions and Surge in Feedgas Demand

The US LNG netbacks hit their highest point in over a year at $22.852/MMBtu on Monday, but prices fell slightly by around 56 cents as news about the Iran war weighed on global LNG markets.

The Strait of Hormuz corridor talks between Iran and Oman resulted in a phased framework for a temporary joint shipping corridor through the strait, with mine-clearance project included. However, Iranian officials tied any full reopening to US concessions.

US LNG feedgas demand jumped to 17.46 Bcf/d on Wednesday, with a gain of about 738 MMcf/d and the largest single-day increase in August, according to NGI's Entropic Analytics data. The majority of the movement came from Corpus Christi and Freeport.