North America gas weekly update: Storage surplus rapidly re-expanding

Current, notable mild weather has turned any bullishness brought on by mid-January’s arctic blast into a seemingly distant memory. US gas production is back at full strength and prepared for another attempt at previous record highs. However, demand has not enjoyed the same full recovery as supply, and this week’s partial shutdown at Corpus Christi LNG is piling on to the month-long outage expected at Freeport Train 3. With the stage set for a rapid re-expansion of the storage surplus, Henry Hub is threatening to break below $2.00/mmbtu without a decisive turnaround to colder temperatures. This weekly natural gas commodity report seeks to explore: • How long will heating demand remain suppressed? • What is the latest hiccup in LNG export demand? • How much will the storage surplus expand in coming weeks?