US Natgas Prices Surge 5% on Stronger LNG Plant Demand

US Natural Gas Futures Jump

U.S. natural gas futures jumped about 5% to a one-week high on Wednesday as U.S. liquefied natural gas (LNG) export plants slowly pulled in more feedgas.

June Futures

On its last day as the front-month, gas futures for June delivery on the New York Mercantile Exchange rose 14.6 cents, or 5.0%, to settle at $3.04 per million British thermal units (mmBtu), their highest close since May 19.

July and Forward Futures

Futures for July, which will soon be the front-month, were up about 3% at $3.10 per mmBtu. The 12-month and year-ahead futures strips both fell to their lowest since December 2024.

Negative Prices at Waha Hub

In the cash market, average gas prices at the Waha Hub in West Texas have remained in negative territory for a record 77 days in a row due to pipeline constraints.

Supply and Demand

Financial group LSEG said average gas output in the U.S. Lower 48 states fell to 109.5 bcfd so far in May. Analysts noted mild weather earlier this spring allowed more storage injections, but recent output declines likely reduced the inventory surplus to about 6% above normal.

LNG Exports

Average gas flows to the nine big U.S. LNG export plants fell from a monthly record high of 18.8 bcfd in April to 17.1 bcfd so far in May due to spring maintenance. However, flows were up from earlier in the week as some plants showed signs of pulling in more feedgas.