US spot gas prices plunge to multi-year lows; the Henry Hub cash price tumbles 16.10 cents Wednesday morning to $1.654/MMBtu, the lowest price since March 9, 2016, when Henry Hub settled at $1.575/MMBtu Cheaper prices reduce input costs for liquefaction facilities, but can lower margins for drillers Production shut-ins possible in some basins as cash prices fall near operators’ cash costs: Platts Analytics. Most operators, aside from Cabot, have at least 50% of planned 2020 production volumes hedged; Average volume hedged is 64% at average price of $2.66/MMBtu, providing operators some cushion Total US gas stocks up 63.8% from year-ago levels to 2.043 Tcf for week ended March 6, according to the Energy Information Administration LNG prices in Northeast Asia, as represented by Platts JKM, recover steadily since bottoming out at $2.713/MMBtu February 14; Spot price of cargoes into the region for delivery in May was assessed Tuesday […]

Posted in: LNG