Hotter weather trends over the weekend and an increase in liquefied natural gas (LNG) feed gas demand lifted natural gas futures prices in early trading Monday. The July Nymex contract was up 3.1 cents to $1.700/MMBtu at around 8:35 a.m. ET.
For the evening cycle for Monday’s gas day, Genscape Inc. estimates showed a 550 MMcf/d day/day jump in LNG feed gas demand.
“Most notably, feed gas demand from Sabine Pass facilities has increased by 493 MMcf/d since Sunday,” the firm said. “Currently, most of this gas is being sourced from increased deliveries from Transco (up 298 MMcf/d day/day) and Kinder Morgan Louisiana Pipeline (up 121 MMcf/d day/day).
Touchstone Exploration Inc (LON:TXP) is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago.