U.S. natural gas prices fell sharply by 62% year-on-year in 2023.

According to a January 4 report by the U.S. Energy Information Administration (EIA), data from Refinitiv Eikon show that the average 2023 spot price for natural gas at the Henry Hub (HH) was $2.57 per million British thermal units (MMBtu), down approximately 62% from the 2022 average. Record-high natural gas production, flat consumption, and continuously rising natural gas inventories collectively drove the 2023 price decline relative to 2022. In 2023, the HH monthly average spot price remained below $3.00/MMBtu in every month except January, with the lowest average—$2.19/MMBtu—recorded in May. Record-breaking natural gas production outpacing growth in consumption was the primary driver behind the 2023 U.S. natural gas price decline. The EIA estimates that U.S. natural gas production reached a record 104 billion cubic feet per day in 2023, an increase of 4% over 2022. Notably, although U.S. natural gas prices plunged year-on-year, the United States became the world’s largest liquefied natural gas (LNG) exporter in 2023—surpassing both Australia and Qatar! According to compiled data through December 31 of last year, the U.S. exported a total of 91.2 million metric tons of LNG throughout 2023, setting a new national record.

Amid ongoing turbulence surrounding the 'Monthly Natural Gas Report,' is competition intensifying in the LNG import market?

Key Data Trends The NYMEX Henry Hub natural gas (NG) futures settlement price fluctuated during May; as of May 30, it stood at $3.447/MMBtu—up $0.121/MMBtu (a 3.64% increase) from the prior period (April 30). The Dutch Title Transfer Facility (TTF) natural gas futures price rose, closing the month at $11.436/MMBtu—an increase of $0.733/MMBtu (6.85%) from the prior period (April 30). In China, the national average LNG receiving price was 4,607 RMB/ton—down 2.50% month-on-month but up 2.24% year-on-year. Looking ahead to June, influencing factors across the three major markets are relatively aligned. Key attention should focus on Europe’s summer replenishment needs. Currently, demand remains weak in major consuming regions, no significant competition has emerged in the import market, and supply continues to exceed demand. 1. Global Highlights Review 1.1 U.S. Market Bullish Factors: 1. On May 7, Freeport LNG—a U.S. LNG export facility located in Texas—resumed accepting increased volumes of feed gas, indicating a gradual restoration of operations following an interruption on the previous Tuesday. Bearish Factors: 1. The U.S. Department of Energy (DOE) has restarted the approval process for LNG export permits. 2. On Friday, May 23, a Federal Energy Regulatory Commission (FERC) filing revealed FERC’s approval of Venture Global’s continued construction of its CP2 LNG facility in Louisiana. 1.2 European Market Bullish Factors: 1. On May 6, according to a draft document from the European Commission, the Commission plans to propose, next month, a ban on imports of remaining Russian pipeline gas and LNG under existing contracts by the end of 2027. 2. On Monday, May 26, Equinor announced in a regulatory filing that, due to a compressor failure, it had extended the partial shutdown of its Troll gas field in Norway until May 31. Bearish Factors: 1. On May 6, the Norwegian parliament instructed the minority Labour Party government to launch a new round of offshore oil and gas exploration licensing in border regions, laying groundwork for expanded drilling activities. 2. On May 14, Sonatrach signed an agreement with Slovenia’s leading gas supplier Geoplin to deliver gas to Slovenia via the Algeria–Italy interconnector pipeline. 3. On Thursday, May 29, the U.S. DOE announced approval for Sempra’s Port Arthur Phase II project, authorizing LNG exports to both European and Asian markets. 1.3 Chinese Market Bullish Factors: 1. On Monday, May 12, Egypt’s state-owned Egyptian Natural Gas Holding Company (EGAS) signed a 10-year agreement with Hoegh Evi to deploy a floating LNG import terminal near Alexandria in the Mediterranean Sea—aimed at meeting surging domestic gas and power demand amid declining domestic production. 2. On Friday, May 30, Australia’s Vva Energy announced that Victoria’s state government had approved its Geelong LNG terminal project, citing broader concerns about the country’s gas shortage.

Freeport LNG to Increase Natural Gas Intake in Texas After Unit Shutdown

19 hours ago

Freeport LNG plans to resume higher natural gas intake on Monday following a maintenance shutdown of Train 2 last Friday. LSEG data indicates flows will rise to 1.9 billion cubic feet per day, potentially impacting global gas market prices.

reuters

2026-04-08

Freeport LNG Seeks Approval to Demolish Obsolete Import Facilities in Texas

2026-10-05

Freeport LNG to Increase Natural Gas Intake in Texas After Unit Shutdown

Freeport LNG to Increase Natural Gas Intake in Texas After Unit Shutdown

FAQ