US Natural Gas Futures Extend Losses as Freeport LNG Delays Restart

US natural gas futures extended losses to over 5% to $6.3/MMBtu on Friday, the lowest since November 14th and were set for an over 13% weekly fall, after Freeport LNG delayed the expected restart of its export plant to the end of the year from mid-December, leaving more gas in the domestic market.

Natural gas futures were already lower on forecasts for less cold weather and lower demand which should allow utilities to leave more gas into storage.

Also, average gas output in the US Lower 48 states rose to a record 99.5 bcfd in November, up from 99.4 bcfd in October.

At the same time, the US government is stepping up efforts to reduce the risk of a railroad worker strike that could disrupt coal deliveries and force power generators to burn more gas.