US Southeast gas prices tumble as LNG feedgas demand plummets

New York — US Southeast natural gas prices decreased on Aug. 26 as there was downward pressure in the market from lower LNG feedgas demand ahead of approaching Hurricane Laura.

The cash price for Columbia Gas Transmission Onshore fell 5.5 cents on the day to $2.295/MMBtu. This is the second consecutive day that this location has fallen. Lower LNG feedgas demand added downward pressure on prices in the region.

Total US LNG feedgas demand fell to 2.08 Bcf on Aug. 26, nearly 300 MMcf lower than the previous day, according to S&P Global Platts Analytics.

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Specifically, Sabine Pass has evacuated personnel from the facility and temporarily shut down LNG production during the strong, dropping feedgas from 1.5 Bcf/d on Aug. 23 to 0 MMcf/d on Aug. 25, according to Platts Analytics.

Cameron LNG will keep essential personnel onsite to monitor the facility during the storm, according to Platts Analytics. Deliveries from Columbia Gulf Transmission to the facility sat at 95 MMcf on Aug. 26. Deliveries via CGT to the facility averaged 530 MMcf/d so far this month.

Looking farther west, the cash price for Houston Ship Channel fell 21.5 cents on the day to $2.305/MMBtu. This location has lost nearly 25 cents in the last two trading sessions. There was downward pressure on this location due to the bearish sentiment for demand as the city of Galveston issued a mandatory evacuation on Aug. 25.

Texas power demand fell 100 MMcf on the day to reach 6.16 Bcf on Aug. 26, according to Platts Analytics. Demand is expected to fall to 6.06 Bcf by Aug. 27 as Hurricane Laura could lead to power demand destruction across the state.