Natural gas prices decreased by 2.57%, closing at Rs 280.3. This decline was influenced by anticipations of reduced feedgas demand from LNG export facilities, coupled with stronger-than-expected storage injections. Freeport LNG has declared a period of scheduled maintenance at its pre-treatment and liquefaction facilities, set to occur from 10 July through late August. This maintenance will result in a temporary reduction of natural gas flows to the export terminal.

Simultaneously, the U.S. Energy Information Administration disclosed a storage build of 61 billion cubic feet for the week ending July 3, surpassing market expectations of 49 Bcf and augmenting the inventory surplus relative to the five-year average to 185 Bcf. The substantial increase in storage capacity underscored favourable domestic supply conditions, even in the face of persistent seasonal demand. Fundamentally, weather forecasts indicate a sustained demand in the power sector, as above-normal temperatures anticipated through July 23 are likely to maintain elevated electricity consumption levels for air conditioning purposes.

On the supply side, natural gas production in the Lower 48 states averaged 109.7 billion cubic feet per day thus far in July, marginally lower than June levels and beneath the record monthly high attained in December 2025. Total working gas in storage increased to 2.983 trillion cubic feet, which is 0.5% lower than the level recorded last year, yet 6.6% higher than the five-year average. Looking ahead, the EIA anticipates that U.S. natural gas production and consumption will achieve unprecedented levels in 2026 and 2027. Dry gas production is projected to reach 111.0 bcfd by 2026, with LNG exports anticipated to grow consistently, indicative of increasing export capacity and sustained global demand.

Technically, the market is experiencing long liquidation, as evidenced by a 9.37% decline in open interest in conjunction with falling prices. Immediate support is identified at Rs 273.9, and a breach beneath this threshold may lead to further declines towards Rs 267.5. On the upside, resistance is positioned at Rs 287.8, and a sustained move above this level could initiate additional gains toward Rs 295.3.