U.S. natural gas futures jumped about 5% to a two-week high. This is due to cold weather forecasts and higher heating demand in December.
According to traders, the biggest uncertainty for the market is whether Freeport LNG will resume its liquefied natural gas (LNG) export plant at the end of the year. Some analysts, however, do not expect the plant to resume production until January or even later. Such a delay is due to the fact that federal regulators will need more time to review and approve the plan to restart the plant.
The US Federal Energy Regulatory Commission (FERC) urged Freeport to respond to numerous requirements that create barriers to reopening the facility.
Despite rising analysts' expectations that Freeport will not return until 2023, two vessels in the Gulf of Mexico have been waiting to pick up LNG from the plant since early November. Another vessel sailing to the plant is expected to arrive in late December, and a couple more are expected in early January.