U.S. natural gas prices dropped on Thursday following a larger-than-expected inventory increase and forecasts of milder weather with lower demand for the upcoming week. By 11:00 am ET, natural gas futures had fallen by 4.6%, trading at $4.05/MMBtu, down from a multi-year high of $4.35/MMBtu reached on March 10.
The U.S. Energy Information Administration (EIA) reported that utilities added 9 billion cubic feet (Bcf) of gas to storage for the week ending March 14, significantly higher than the expected 3 Bcf. This was the first inventory increase since November 2024, helping to reduce the storage deficit. However, U.S. gas inventories remain 26.8% lower than last year and 10% below the five-year average.
Gas prices had surged earlier in March due to a record 15.7 billion cubic feet per day (bcfd) in U.S. LNG exports, driven by the launch of new units at Venture Global’s Plaquemines LNG plant. The Arlington, Virginia-based company began LNG production at the plant 30 months after the final investment decision, marking one of the fastest greenfield projects to reach production. Once fully operational, Plaquemines will become one of the world’s largest LNG facilities, with 36 liquefaction trains capable of producing 20 million tonnes per annum (mtpa) of LNG.
Venture Global’s CEO and Co-Founder, Mike Sabel, emphasized that the rapid progress at Plaquemines will help the U.S. maintain its position as the top LNG exporter. The company plans to invest $50 billion in U.S. energy projects, creating jobs and supporting local economies while boosting LNG supply to global allies.
To meet Europe’s rising LNG demand, the U.S. is rapidly expanding its LNG infrastructure. Two weeks ago, Cheniere Energy began production from the first train of its Corpus Christi Stage 3 Liquefaction Project. The project is nearing 76% completion, with substantial completion expected by the end of the first quarter of 2025. When finished, the project will include seven midscale trains and produce over 10 million tonnes per annum of LNG.
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