NYMEX NatGas Price Drops 20% in Single Day re Freeport LNG, Storage

Yesterday the NYMEX natural gas price lost 20% of its value in a single day for the second time in two weeks. When news broke on June 14 that the Freeport LNG plant would not likely return to full service before the end of this year, the NYMEX front-month contract lost $1.42 (19.75%) to close at $7.19/MMBtu (see NYMEX NatGas Down 20% in Single Day on Freeport LNG Bad News). Yesterday the NYMEX front-month contract lost $1.07 (19.8%) to settle at $5.42/MMBtu. What prompted the dramatic loss yesterday was the reaction of traders to two events: (1) a Pipeline and Hazardous Materials Safety Administration (PHMSA) report saying the agency found unsafe conditions at the Freeport LNG export terminal in Texas and will not allow the plant to restart until the completion of an outside analysis; and (2) a larger than expected volume of natural gas was injected into storage, meaning more supplies are now available with the same (or less) demand.

---

To view this content, log into your member account. (Not a member? Join Today!)