U.S. natural gas demand may reach a record low

According to Rystad Energy Vice President Emily McClain, U.S. natural gas demand may reach a record low. A potential fall in demand is driven by mild weather conditions observed in the country. 

McClain added that despite a quite stable market demand for liquid natural gas (LNG), its prices are declining. In this regard, bearish momentum is expected to remain until the cold weather returns. Although the weather is projected to be warm. According to the forecast, temperatures will be significantly higher than average in the near term.

McClain also stated that the restart of Freeport LNG, one of the largest U.S. LNG plants, might be postponed again. This fact increases the negative pressure on the prices. At present, additional volumes of gas circulate in the country’s domestic market, as Freeport LNG is off work.