Natural gas prices experienced a significant increase, closing up 8.43% at Rs 380.8, propelled by unprecedented feedgas flows to U.S. LNG export terminals and heightened expectations for near-term demand. Gas flows to the eight major LNG export plants have increased to 18.5 bcfd this month, surpassing November’s previous record of 18.2 bcfd. Daily LNG feedgas is poised to increase further to 18.6 bcfd, bolstered by enhanced utilization at Cameron LNG, Freeport LNG, and Venture Global’s Calcasieu facility.

LSEG projects that total U.S. gas demand, encompassing exports, will increase from 127.9 bcfd this week to 136.0 bcfd in the following two weeks. This outlook supports a bullish sentiment, even in light of predictions for predominantly warmer-than-normal weather until January 7. Storage data provided additional support, as U.S. utilities withdrew 167 bcf during the week ending December 12, resulting in inventories totaling 3,579 bcf.

Equities currently sit 1.7% beneath the levels observed a year ago, yet remain 0.9% above the five-year mean. Anticipating future trends, the EIA forecasts that both production and demand will achieve unprecedented levels in 2025, with dry gas output estimated at 107.7 bcfd and consumption at 91.8 bcfd.

From a technical perspective, the market is experiencing new buying activity, as evidenced by a 10.23% increase in open interest to 13,095, coupled with a price increase of Rs 29.6. Natural gas exhibits support at Rs 362.4; a decline below this level could see a test of Rs 343.9. Conversely, resistance is identified at Rs 391.1 and Rs 401.3.