10.11.202512:34:51UTC+00US Natgas Prices Surge 3% to 8-Month High

U.S. natural gas futures have seen a substantial increase of nearly 3%, reaching approximately $4.45 per MMBtu, marking the highest levels observed since March and nearing figures from December 2022. This surge is primarily attributed to robust export demand and unprecedented activity at LNG facilities. Flows to the country's eight major LNG plants have averaged about 17.4 billion cubic feet per day this month, surpassing October's record. These flows are anticipated to climb further as Europe seeks alternatives to Russian gas and Asian buyers solidify long-term U.S. supply contracts. Concurrently, production remains elevated, with U.S. output hitting approximately 108.7 billion cubic feet per day, exceeding October’s figures and contributing to storage levels that are approximately 4% above the seasonal average. The Energy Information Administration (EIA) forecasts that both supply and demand will achieve new peaks in 2025 and 2026, spurred by the energy needs of data centers and a surge in LNG exports. Next year, dry gas production is expected to surpass 107 billion cubic feet per day, while total consumption could near 116 billion cubic feet per day. Key shale regions, such as Marcellus, Utica, Haynesville, and the Permian Basin, continue to be pivotal in driving this growth.