Gas in USA has fallen to 5 weeks’ minimum

On Tuesday, the cost of natural gas in the States decreased by almost 2%. This is a new five-week low. Such a situation was caused by falling oil prices and a decrease in demand for gas. Weather forecasts predicted the absence of severe frosts also played their role.

The gas reserve was less by about 2.4%. It is below the five-year average for this time of year. Traders admit that the restraint of demand for gas was caused by a delay in launching an LNG export facility. Opening of the Freeport LNG plant in Texas was postponed from December until the end of the year. Some analysts suppose that even such a restart option is unlikely. They doubt Freeport will be up and running before winter or even later. Federal pipeline safety regulators may need more time to study all issues and approve the plan for the plant’s restart. 

According to ship tracking data from Refinitiv, one gas carrier probably refused to wait for the plant to start the work. Two other ships remained in the Gulf of Mexico to take gas from Freeport.