US Natural Gas Futures Steady Amid Record LNG Flows and Output Decline

U.S. natural gas futures remained stable on Friday, March 28, as record flows to liquefied natural gas (LNG) export facilities counteracted a decrease in daily output and projections for reduced demand in the near term. May delivery gas futures on the New York Mercantile Exchange increased by 0.1 cent to $3.93 per million British thermal units (mmBtu). Spot power prices at South Path 15 (SP-15) turned negative for the first time since June 2024 due to mild weather and ample hydropower in the U.S. West. Next-day prices at SP-15 fell to minus $5.23 per megawatt hour (MWh). Meanwhile, at the Mid-Columbia hub in Oregon, next-day power prices dropped to $6.57 per MWh, the lowest since May 2023. Average gas output in the Lower 48 U.S. states rose to 106.0 billion cubic feet per day in March, up from a record 105.1 bcfd in February. Gas flowing to the eight major operating U.S. LNG export plants averaged 15.8 bcfd in March, surpassing February's record of 15.6 bcfd.