Mon Sep 09 15:03:57 UTC 2024: ## Tropical Storm Francine Drives Down Natural Gas Prices

**HOUSTON, Sept. 10, 2024** – Natural gas prices are dropping as Tropical Storm Francine threatens to disrupt LNG exports from the Gulf Coast, according to industry experts.

David Seduski, Head of North American Gas at Energy Aspects, warned that a landfall in Louisiana, particularly near the Cameron, Calcasieu Pass, or Sabine Pass terminals, could lead to facility shutdowns and further dent demand.

“A landfall anywhere in Louisiana would disrupt LNG tanker loadings, and closer to the Cameron, Calcasieu Pass (also in Cameron Parish) or Sabine Pass terminals could cause a facility to shut down and dent demand further,” Seduski said.

While the exact impact of the storm remains unclear, experts agree that the risk of disrupted gas demand has contributed to the recent price drop.

Frederick J. Lawrence, former Chief Economist of the Independent Petroleum Association of America (IPAA), confirmed that the storm and its associated gas demand risk have pushed prices down, following a more bullish gas storage report last week.

Art Hogan, Chief Market Strategist at B. Riley Wealth, pointed to other factors driving the bearish sentiment in the market.

“With storage levels 323 billion cubic feet above the five-year average, natural gas prices continue [to] struggle,” Hogan said, adding that mild weather across the US is also limiting demand.

Paul Sankey, Lead Analyst at Sankey Research, further emphasized the abundance of natural gas production, stating that the US has “3-4 percent spare production capacity available almost immediately.”

The U.S. Energy Information Administration (EIA) confirmed the high storage levels in its latest weekly report, noting that working gas in storage reached 3,347 billion cubic feet as of August 30, 2024.

While the storm’s impact on natural gas prices remains to be seen, the confluence of factors, including high storage levels, mild weather, and the threat of disruptions from Tropical Storm Francine, has created a bearish market outlook for the foreseeable future.

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