US natgas prices rising on record supplies to LNG plants and expectations of colder weather

On Tuesday, the price of natural gas in the United States rose by about 1% to $4.12 per million British thermal units.

The increase was boosted by record supplies to liquefied natural gas (LNG) export facilities. According to Reuters estimates, the volume of gas being delivered to the eight largest US LNG plants has risen to an average of 15.7 billion cubic feet per day, higher than the February record. The growth of supplies was driven by the start of operation of new units at the Plaquemines LNG plant.

A slight reduction in domestic gas output per day has also impacted the prices. According to LSEG, average gas production in the US has increased to 105.8 billion cubic feet per day in March, an increase of about 0.7 billion cubic feet from February's figures. However, on a day-to-day basis, production fell by about 2.7 billion cubic feet, according to the latest estimates.

A shift in US weather forecasts from expected warming to average air temperatures over the next two weeks has additionally contributed to the rise in gas prices.